Why is trade-in price less than private value?

Why is trade-in price less than private value?

why do u get less money for a trade in as against selling it privately

Our answer:

Hi Frank,

It’s because the dealer will always bid you less than the intrinsic value of the car because they have to leave themselves room in the price for any preparation or repair work that needs doing, storage costs while it’s on sale and a profit margin.

Shane O'Donoghue

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