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Old 01-28-2008, 08:27 PM   #1
XDCX
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Default So how does your Dealership handle Dealer Trades?

I was wondering if there were differences in the way that Dealer Trades were handled across the country. Does it vary by region or by franchise? Or is it done the same way across the country?

My experience has been limited to Chrysler Dealerships in Washington State. The unwritten policy between dealers here is that trades are done at Invoice - each dealer retains holdback on the unit they were initially shipped. I don't know why it's done that way, that's just what everyone seems to have agreed to.

Knowing this, the smart GSMs always try to trade an expensive vehicle for a cheap vehicle. If someone wants your fully loaded Ram with the Cummins engine, you make sure you get a base unit Caliber in return. The difference in holdback between the two vehicles is profit for the store.

Does everyone do it this way, or do you trade at net?
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Old 02-06-2008, 07:54 AM   #2
SHACOS
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Out here in Colorado it has been my experience it is the same. Each dealer retains holdback.
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Old 02-08-2008, 11:13 AM   #3
okcarl
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Quote:
Originally Posted by SHACOS View Post
Out here in Colorado it has been my experience it is the same. Each dealer retains holdback.
that is the way we do it. It is an unwritten rule that you keep your holdback.
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Old 02-08-2008, 12:40 PM   #4
XDCX
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Originally Posted by okcarl View Post
that is the way we do it. It is an unwritten rule that you keep your holdback.
Do you find many dealers that try to "profit" on the dealer trade by trading you a more expensive unit that the one you're trading? Or do most dealers just trade vehicles of a similar invoice value?
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Old 02-08-2008, 01:17 PM   #5
okcarl
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Generally we trade like to like.
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Old 02-08-2008, 01:39 PM   #6
SHACOS
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Same here. Our Store's will trade the same model to other dealers, but may trade more unevenly to our other Stores.
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