Buyers with a trade-in get a raw deal

30 abril 2015

A consumer with a trade-in actually forks over more money to the dealer than consumers without a trade-in, new research shows. The research theorizes that sellers of durable goods for which dealers accept trade-ins–cars, boats, home appliances and musical instruments–can utilize inferences about the buyer’s willingness to pay based not only on his or her decision to trade in the old good, but also on its characteristics.