QUESTION: Is it a good idea to let a car dealer get me a new car from another car dealer by dealer-trading for it?

November 08, 2005

Hi Tony

I can't tell you how helpful your site has been. Wish I knew about you before I bought my last car.

Anyway, here's my question. Say I go to a new car dealer and know exactly what I want in the way of options, etc, but the dealer doesn't have the exact car on the lot and offers to bring one in from another car dealer (this actually happened to me).

My instinct was to say no. What should I do, and what are the pitfalls if I say yes? Am I obligated to buy that vehicle sight unseen, and am I liable for any transportation charges to get it to the car dealer from the other location?

Thank you so much.

Claudia

Answer:

Hi Claudia,

It's a common practice for new car dealers to do what is called a "dealer-trade" with other car dealers. Often a customer will come in looking for a new car with certain options, or in a specific color that the car dealer doesn't have in stock.

The dealers have a computer network they can access that will locate such a vehicle at another car dealer. They will then get on the phone and try to swap that car for something they have in stock. If the customer agrees then the dealer will send someone to drive the car back from the other car dealer.

"Dealer-trades" can be done with car dealers in close proximity, or in some cases with dealers in other states and anywhere in between.

The upside for the customer is they get what they want right away. The downside is the vehicle will have miles on it from having been driven back to the selling dealership. It could be 50 miles or it could be 500 miles or more depending on where the car comes from.

You could insist that if you accept a "dealer-trade" that the dealer will transport the vehicle back on a flat bed truck or on a trailer. This will increase the transportation expense, but this would eliminate the miles being put on the car.

You do have another option; ordering a vehicle. The car dealer can order a vehicle from the factory to your exact specifications. The waiting time is usually 2 to 6 weeks. This way you get a brand new car from the factory just the way you want it.

Dealers would rather sell out of their current stock or "dealer-trade" because they want the deal NOW! They don't want to wait. They're afraid you'll change your mind if you have to wait for your vehicle to come in. This is because most people make emotional car buying decisions, and once they have time to think about it they often change their minds.

Before a dealer will trade or order a car, you have to first negotiate a deal. They will almost always want a deposit before getting the car.

If you decide to go either of these two routes get a written statement from the dealer that you are not obligated to take the car if it does not meet with your approval. Also get them to give you a written guarantee that if you decide not to take the car that you will get your deposit back. This should be agreed to and signed by the Sales Manager not just the sales person.

If they won't give you this guarantee then tell them "see ya" and go to another dealer. There are plenty of car dealers out there who will appreciate your business and accommodate you.

As far as the cost of transportation fee for a "dealer-trade" goes, this cost will be built into the negotiated price. Make them promise, in writing, that if you don't want the car that you will not be held liable for the transportation costs.

Remember, get everything in writing agreed to and signed by the Sales Manager. Don't take anybody's word for anything. They might be the most honest dealer on the planet, but you have no way of knowing this for sure. Cover yourself. Stay in control of the buying situation and you will have fun buying your new car. Don't let the dealer spoil your fun with their high pressure tactics.

All my very best...

Tony Iorio