When you’re in the market for a new car, you might have a specific make, model, or even color in mind. However, not every dealership will have the exact car you’re looking for on their lot. But don’t let that deter you—there’s a good chance that they can still get the car you want through a process known as a “dealer trade” or “dealer swap.”
This practice is more common than you might think, and it allows dealerships to meet customer demands without the limitations of their current inventory.
In this blog post, we’ll explore how dealerships acquire cars from other dealerships, the logistics involved, and what you should know as a buyer when considering this option.
How Dealer Trades Work
Dealer trades are essentially a handshake agreement between two dealerships. If a customer wants a specific vehicle that isn’t available on a particular lot, the dealership can reach out to other dealerships within the same network or brand to see if they have the car in stock.
If they do, the two dealerships negotiate the terms of the trade, which usually involves exchanging vehicles of equal value or selling the car directly.
The Process Step by Step:
- Customer Request: A customer visits a dealership and expresses interest in a car that isn’t in stock. The salesperson takes note of the desired make, model, trim level, and any specific features.
- Inventory Search: The dealership’s inventory manager searches their own stock and, if necessary, the inventories of nearby dealerships to locate the desired vehicle. This is often done through an internal database that tracks vehicle availability across a network of dealerships.
- Negotiation: Once the vehicle is located, the two dealerships negotiate the terms of the trade. This could involve a direct exchange of vehicles, or one dealership might purchase the vehicle from the other at a wholesale price.
- Logistics: After the deal is finalized, the vehicle is either driven or transported by truck to the requesting dealership. The logistics can vary depending on the distance between the two dealerships and the urgency of the request.
- Final Sale: Once the car arrives at the dealership, the customer is notified, and the sale proceeds as if the car had been in stock all along.
Why Dealer Trades Happen
Dealer trades are beneficial for both the dealership and the customer. For the dealership, it means a potential sale that might have otherwise been lost.
For the customer, it offers a greater chance of getting the exact car they want without having to wait for a factory order or settle for something that’s close but not perfect.
Benefits for Dealerships:
- Increased Sales: By participating in dealer trades, dealerships can meet customer demands more effectively, leading to higher sales volumes.
- Inventory Management: Dealerships can offload vehicles that are in lower demand in their area by trading them for cars that are more likely to sell quickly.
- Customer Satisfaction: A happy customer is more likely to return for service or recommend the dealership to others, and dealer trades can be key to making that happen.
Benefits for Customers:
- More Options: Dealer trades open up a wider range of vehicles than what’s just on the lot, increasing the chances of finding the perfect car.
- Faster Delivery: Instead of waiting for a factory order, which can take weeks or even months, a dealer trade can often secure the desired car within a few days.
- Convenience: Customers can work with a dealership they trust, even if the car they want isn’t there, knowing that the dealership can source it from elsewhere.
The Logistics of a Dealer Trade
The logistics of moving a car from one dealership to another can vary depending on several factors, including the distance between dealerships and the urgency of the customer’s request.
In some cases, the car might be driven directly from one dealership to the other by a dealership employee.
In other cases, especially when the distance is greater, the car might be transported on a truck.
Factors Influencing Logistics:
- Distance: The greater the distance between the two dealerships, the more complex and costly the logistics become. Short distances might involve a simple drive, while longer distances might require professional transportation services.
- Vehicle Condition: If the car is driven from one dealership to another, its mileage will increase slightly. Dealerships are typically mindful of this and may disclose any additional miles to the customer.
- Cost: Transportation costs are usually absorbed by the dealerships as part of their trade agreement, but in some cases, these costs might be passed on to the customer, particularly if the car has to be transported over a long distance.
- Timing: The timing of the vehicle’s arrival can vary based on the availability of transport and the distance between dealerships. However, most dealer trades are completed within a few days.
What Customers Should Know
While dealer trades are generally a smooth process, there are a few things that customers should keep in mind. First, it’s important to ensure that the vehicle being traded for meets all of your specifications.
Second, be aware of any additional costs that might be associated with the trade, such as transportation fees or slight variations in the vehicle’s mileage.
Key Considerations:
- Confirm Specifications: Make sure that the vehicle coming from another dealership has all the features and options you want. This includes checking the VIN (Vehicle Identification Number) to verify the exact model and equipment.
- Ask About Additional Costs: Some dealerships might pass on the cost of transporting the vehicle, so it’s a good idea to ask about this upfront.
- Inspection Upon Arrival: When the car arrives at the dealership, it’s worth taking the time to inspect it thoroughly to ensure it’s in the condition you expect, especially if it was driven over a long distance.
- Understand the Timeline: Ask your dealership for an estimated timeline for when the car will arrive, so you can plan accordingly.
Conclusion
Dealer trades are a practical solution for both dealerships and customers, allowing a greater range of vehicles to be sold and bought without being constrained by the limitations of local inventory.
Whether you’re looking for a specific model or just want to work with a dealership you trust, knowing that dealer trades are an option can make the car-buying process more flexible and convenient. So, if the car you’ve been dreaming about isn’t on the lot, don’t be discouraged.
Your dealership might just be able to get it from another one, ensuring that you drive away in exactly what you want. Just be sure to ask the right questions and understand the process, and you’ll be well on your way to getting the car that suits your needs.
Chinedu Chikwem is an automotive enthusiast and graduate of automotive mechatronics with a passion for simplifying complex automobile concepts. As an author, He specializes in making traditional and electric vehicle terminology accessible to all, leveraging his deep understanding of automotive engineering and technology.