| When trading a vehicle there are four
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| | One thing learned when purchasing at an
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| categories that will clearly affect the
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| | auction, talking with a wholesaler, or
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| value of your vehicle; (1) Current market
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| | shopping a trade-in to another dealership
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| value. This is an adjustment amount to
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| | is that prices vary widely across the
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| the book value that is made by the
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| | board. Realistically I have witnessed
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| vehicle appraiser and occurs when there
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| | value swings by as much as $2000.00. (3)
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| are real time changes in the market that
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| | Dealership wants. In some circumstances a
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| are not readily reflected in current book
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| | dealer may not want your trade. You might
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| values. One powerful example is the
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| | have a very expensive trade, the dealer
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| energy crisis that came along in the fall
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| | does not want to tie up money in a slow
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| of 1973. Many consumers panicked (mildly)
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| | seller and the dealer cannot find a home
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| and began trading their gas hogs for fuel
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| | for it with another dealer. Therefore to
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| efficient smaller vehicles. As the extent
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| | make a deal he will hit the trade low
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| of the crisis and its duration were
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| | expecting to find a home for it at the
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| unknown, and there were no real
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| | auction, with another dealer, or attempt
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| predictions as to the short and long term
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| | to cheap sell it on his own lot.
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| effects, most dealers looked on the gas
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| | Regardless, the vehicle may bring several
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| hogs with an eye of concern, specifically
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| | thousand dollars below book, your loss.
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| in relation to their dollar value. I
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| | (4) Dealership need. The dealership may
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| counseled many buyers during that time,
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| | not need "another one of those". Some
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| encouraging them to be patient and wait
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| | vehicles are a glut on the market. An
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| it out. Most of them, nearly all, traded
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| | example would be the dumping of a rental
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| anyway. They received as little as 50% of
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| | car fleet at the auction, everyone buys
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| the book value for their gas hogs and
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| | them, everyone has one, and no one needs
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| paid over retail in many cases to
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| | another one. Dealership want and
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| purchase a fuel efficient vehicle. Many
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| | dealership need may also swing in your
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| of those people returned to the market
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| | favor. There were many times that I paid
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| within a short period of time and traded
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| | over book (more than $1200.00) to own a
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| their fuel sippers for gas hogs. Again,
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| | vehicle, knowing that if I did not,
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| values were adjusted to allow for the
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| | someone else would, and I would miss the
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| glut of small vehicles on the dealers
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| | sale on three vehicles; (1) my vehicle,
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| lot. There are always current market
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| | (2) the trade-in, and (3) the trade-in on
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| value adjustments whether just at a
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| | that one. Instead of missing business, I
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| dealership, in a city, an area, a state,
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| | would make three profits. It should be
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| a region, or across the country. These
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| | clear that; (1) you must know the value
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| adjustments may be as simple as a
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| | of your vehicle to do business with it;
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| dealership being overstocked with used
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| | (2) the book value is affected by other
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| vehicles due to some internal problem;
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| | circumstances, some of which are beyond
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| therefore the dealer has to pay less for
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| | your control. However, because you know
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| vehicles currently being traded in. An
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| | the value of your vehicle you have an
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| area may be affected by an economical
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| | idea of where you should be, and by
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| crisis that overall affects the consumers
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| | shopping more than one dealership (if you
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| ability or willingness to spend money.
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| | don't get the value up front) there is a
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| Wars and rumors of war have a strong
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| | very good chance you will get your money.
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| negative effect on vehicle values, as
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| | It is absolute that you use a
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| does the price of fuel. One major factor
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| | professional source to determine the
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| that affects the value of trade-ins are
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| | value of your vehicle prior to shopping
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| the deals being offered on new vehicles.
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| | for your next vehicle. If you had a wad
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| The greater the deal on new, the less is
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| | of $10.00 bills in your pocket, a big
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| paid for the trade. Why? Used vehicle
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| | wad, and you wanted to trade them for
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| buyers will step up to new vehicles and
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| | $50.00 bills, and if you had never
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| pass on the late model used vehicles. In
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| | counted them, how would you possibly know
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| many cases payments on a new vehicle may
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| | how many $50.00 bills to get in return
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| be roughly the same as a one year old
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| | for your 10's? Would you just throw them
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| used. Additionally, consumers may
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| | out there and take back whatever 50's
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| determine that they are better off
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| | were offered? Or would you count them
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| trading their current vehicle sooner than
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| | ahead of time, separate them in $50.00
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| intended, taking advantage of the factory
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| | packets, band all the packets together,
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| incentives, and driving off in a new
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| | and put in writing the total amount of
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| vehicle with payments close to where they
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| | all the packets, put that slip of paper
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| were, and offsetting maintenance
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| | with your packet, and put one in your
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| expenditures in the process. (2)
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| | pocket? Would you then watch as the other
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| Dealership attitude. Vehicle values may
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| | party counted your 10's, and as the 50's
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| be affected simply by some issue within a
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| | were counted out for you? Wise folks
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| dealership. An inexperienced Used Vehicle
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| | count their money first, record the
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| Department manager, a poor cash flow in
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| | amount, and observe while others handle
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| the dealership, a weak sales force not
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| | their money!
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| selling vehicles, and other situations.
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