Car Trade In Price Discrimination
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“… buyers with a trade-in pay an average of $990 more than those who do not trade in their used cars.”*

Researchers in California for the Journal of Industrial Economics have proven that not only are customers getting a lower price for trade-ins but the dealership is recouping even more money by charging more for the new vehicle. Anthony Dukes, Assistant Marketing Professor at the University of Southern California (USC) and one of the researchers on this project spoke to Consumer Affairs saying, "The most important finding of our research is that your decision to trade in your old car tells the dealer something about you and your insensitivity to price"**

Using a statistical model and a sample of premium midsize sedan transactions between 2001 and 2005 the group of researchers were able prove that car dealerships can judge a buyer’s willingness to pay not only on his or her decision to trade in an old vehicle but also it’s make, model and condition.

Turns out that folks who purchase the same make as their trade-in vehicle end up paying $990 more on average. The decision to trade-in your Ford for another Ford tells the dealership you were happy with your previous purchase, you aren’t a risk to go buy a Chevy and are willing to pay more for the same satisfaction.

So with trade-ins out of the picture and private sales taking time and upfront cost what is the average family to do? The answer is!

All we do is buy vehicles! By opting to sell your vehicle with us before stepping foot on the dealership lot, you remove the dealership’s ability to discriminate against you.

Not only that, but we make selling your car easy, much easier than a private sale! In as little as thirty minutes we’ll inspect your car and offer you a fair market value. We’ll complete all the paperwork for you and even settle any financing. You’ll walk out with a check in hand and the ability to negotiate a lower price for your new vehicle.

* Kwon, Ohjin and Dukes, Anthony J. and Siddarth, Sivaramakrishnan and Silva-Risso, Jorge M., The Informational Role of Product Trade-Ins for Pricing Durable Goods (October 1, 2014). Journal of Industrial Economics, Forthcoming. Available at SSRN: