Trade-in offer

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Updated: Aug 20, 2021

In selling certain consumer durable goods vendors often offer what are referred to as trade-in terms. This means that they will make an allowance for an old model handed over as part of the contract. Most trade-in offers are a form of price cutting in so far as the vendor cuts his profit for a quick sale, not expecting to gain anything for the model taken in part exchange except its scrap value. In the motor industry models taken in part exchange are, how¬ ever, often dressed up and resold at a price that may either extinguish the loss of profit on the new car sold or, in some instances, actually increase the gain on the whole transaction.

Reference: The Penguin Business Dictionary, 3rd edt.



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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.