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"[T]he trade-in cost for my car they offered was literally half its market value."

I'm curious why you'd expect them to take it for more? They wouldn't do trade-ins if they couldn't profit off of them, and you can't buy things for market value and run a successful business.

If you want close to market value for your car, you have to sell it yourself. And if you think about why you didn't do that, you can see why it costs you something to do a trade-in.



I expected a bit more than 50%. Anyway, my argument isn't about trade-in sales, its about typical profits of dealerships. They absolutely do not make "only $200" per car. When you factor all the things they typically do, they can and easily do thousands per car sale.


They make their money on a few things outside the profit from the can, which is in fact very low.

They make a killing on your trade-in.

They make a killing on extended warranties on used cars.

They make a killing on maintenance and oil changes and the packages they sell around these things.

So although in general they make more than $200 or whatever on the new car sale, they make their real money on everything else around it.




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