A Dealership Trick Called “Over-Allowance” And How To Handle It

Attention car shopper looking to trade-in!!!

Ever heard an ad from a car dealership saying that they would “pay off your trade?” Let me just put it out there, like your uncle giving out advice, they wouldn’t “advertise” this if it wasn’t an advantage to them. I mean, what kind of business goes around paying off people’s loans? That just doesn’t make good business sense. Here’s the breakdown.

Over-allowance: This is when the dealership applies money for your trade-in by siphoning money from the car you are buying from them. Basically, it’s a “shell game.” If the dealer can get you hyper-focused on that particular number or you go in touting the “most for my trade-in wins,” they already know exactly what to do. So be careful not to box yourself into a corner. You need to improve your overall deal, not just one part of it. The goal here is not to fall victim to this “shell game” called Over-allowance.

To avoid this:

  1. Keep the deals separate, do not negotiate on the trade-in while simultaneously buying your new vehicle. Select the vehicle you want to buy and negotiate on that price, discount, rebate, as though you were not trading in a vehicle. Keeping it separate will prevent them from shifting the numbers.
  2. If you want to focus on what your trade-in is worth first, tell them to appraise your vehicle.  DO NOT pick or tell them what vehicle you are wanting to buy.
  3. Ensure that any number that you are hoping for has been backed up by a true real cash offer for the vehicle. In other words, if a dealership says a value, will they and can they write a check for it right now?, ASK THEM. This is always the easiest way to tell if a dealer is shifting numbers around. 
  4. You could remove the trade-in completely and sell to a non-bias third party like CarZeus. We will maximize the value of your vehicle without any confusion or games since we have just one goal, to buy your vehicle. Then you can walk into the dealership with real leverage…Cash!

Benefits CarZeus offers:

  1. We have one goal: to give you the most for your vehicle without any sales tactics.  We are NOT a car dealership and do not want to sell you another car.
  2. We can payout the same day in most cases, with an average transaction time of 15-20 minutes. Dealerships like Carmax can take up to an hour in-person to just tell you what they will give you.
  3. If you prefer, we conveniently offer to pick up your car anywhere in Bexar County, it’s that easy.

Even if you don’t sell us your car, PLEASE utilize us as your information source. We truly want to see you get the best deal all the way around!