When it comes to trade-ins we all know that dealers have to factor in costs for reconditioning your old equipment, finding a new home for it, transporting it etc. But how much profit are they really hiding in the sale and how do we stop them taking us for a ride?
Tip 1 – What’s it worth?
Before you know whether the dealer is giving you a good price, you need to know what your equipment is worth. There are a number of resources out there that can help with this including www.equipmentwatch.com. If you don’t want to pay for a valuation service, sometimes a great way to find out is just to have a look on marketplace websites such as our own www.mascus.com. If you do get a valuation report, take it with you to the dealership and use it for bargaining power.
Tip 2. – Does a dealer want it?
Is what your selling desirable to the dealer? Have a look around their yard and scour their website. You’ll soon get a feel for what they’re good at selling. If your equipment isn’t desirable to them they’ll more than likely send it straight off to auction and will factor that into their offer.
Tip 3. – What condition is it in?
If the item you’re trading in needs repairs, go out and get estimates beforehand. If you leave it for the dealer to control they could deduct higher than necessary fees from the price.
Tip 4. – Separate the deals
Try to keep the purchase and trade-in deals separate. This is where they can really twist the numbers to confuse you. What usually happens when they blend the two is that you’ll get a great deal on one that completely cancels out the other.
Tip 5. – Bottom line is key
Keep your eye firmly on that bottom line, no matter what they do to the figures, all that matters is the net amount you’re going to pay at the end. Try to have a figure in mind before you start the negotiations and don’t be afraid to walk away
Still not sure whether trade-ins are the best option? Check out our guide on the pros and cons of equipment trade-ins.