How car trade ins work in NZ
When you trade in your car at a dealership, the dealer is doing two things at once:
Selling you a car (with as much profit as possible)
Buying your car at the same time (with as much profit as possible)
The trade in price they offer you isn’t just factoring in your car’s value, it also considers:
Dealer margins
Reconditioning costs
How quickly they think they can resell it
How much flexibility they need on the deal overall
The result? Your car trade in value in NZ is often lower than what you car could realistically sell for on the private market. It’s fast, yes. But rarely is it the option that gets you the best deal.