People always say this, but what do they mean?
In: Economics
Cars depreciate. So when you trade it in, you’ll never get back the amount you paid for it. So you’ve lost money.
because the value of cars go down the minute you buy them.
check any car, look at the avg price. then look at the trade-in price for the same exact car. its going to be less.
so if you buy a car, even if you drive that car to another dealership the same day you can’t get the full amount of what you bought it for.
lets say you sell that vehicle privately, you get a little above the trade-in price but not as much as what a dealer could get for it. you’ve “lost” the difference between the dealer price and what you sold it for. now you have to use that money to pay for another car that drops in value as soon as you buy it and lose more money, or add in new funds to get the same quality of car, but still lose money.
Cars depreciate – they lose value for every mile you drive and every day you own it. So you buy it at a higher price and sell it at a lower one.
And if you trade in at a dealership, you will be getting less than if you sold it on your own. They have to be able to mark it up and sell it at a profit. So buying a car and trading it in is essentially like buying at retail price and selling at wholesale.
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