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May 19, 2006, Newsletter Issue #41: How Dealers Calculate the Value of the Trade In
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Tip of the Week
Car dealers do not perceive or calculate trade-in value the same way a consumer does. The manager of a car dealership will calculate a trade-in and assign a price by taking the following steps:
-- The car’s exterior condition will be reviewed (body damage, the paint, etc).
-- The trade in will be evaluated and driven for a mile or so
-- Track the vehicle identification number VIN at CarFax.com
-- Look at the mileage, transmission, under the hood
As far as curb appeal is concerned, mileage and the condition of the body are important facets of the trade in value.
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