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What is a minimum trade allowance?

The allure of a minimum trade allowance will bring to the dealership some customers with cars that are practically worthless. In order to compensate for the guaranteed trade allowance, the price of all used cars could be raised. This makes it more difficult to negotiate a good deal on a used vehicle.

How much is a guaranteed trade allowance?

Most vehicles offered for trade are worth well over $4,000, so this $4,000 guarantee will apply to few customers. The allure of a minimum trade allowance will bring to the dealership some customers with cars that are practically worthless. In order to compensate for the guaranteed trade allowance, the price of all used cars could be raised.

How do you negotiate a trade-in price for a new car?

Once you decide where you want to buy your new car, you'll use the highest figure as the basis for negotiation. To further strengthen your bargaining position, TrueCar analyst Cari Crane suggests that you present maintenance records and a vehicle history report. 4. Negotiate the trade-in price separately

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