To answer this question we have look at the incentives of each dealer.

Incentive of “old school dealership”: To buy low and sell high as many vehicles as possible in any given period of time. Paid off commission, the less a dealer pays you for a trade-in and the more they sell it for the MORE money they make. So their incentive is to MAXIMIZE profit from buying LOW from 1 client then selling HIGH to another..

Note: Buyer and seller have NO idea how much the dealership made off of them


Possible REAL LIFE comparison

Used car dealership - reverse dealer, red deer, AB

Which of these would you choose for the next time you need to buy or sell a vehicle and why?

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