Push, Pull or Drag Sale. You’ve heard it on the radio and perhaps seen it on TV. What does it mean? It means that the dealership are willing to give you more for your trade-in.
I saw a reply online to the question of – what is a push, pull or drag sale? The Q&A answer said, “It’s not really a scam as much as it’s a numbers game. If your trade is worth $500.00 in real money the dealer may show you $3,000.00 on paper. but the reality is that the remaining $2,500.00 is added to the sale price. It’s like when people trade in vehicles that they owe more on then the vehicles are worth.” In Michigan this would be against the law. A dealership cannot alter the top line of a deal because of full disclosure laws.
I also read on other websites that dealers cannot give you a $3,000 push pull or drag sale amount for your car because they can’t loose money. Truth is that sometimes a dealership can loose money and will loose money on a used car.
Another reality in todays market is that used cars continue to go up in value. Unless you have a car that was built in the 90’s and has a blown head gasket or the transmission has a gear that isn’t working your car is probably worth $3,000 or more as a trade-in.
Recent NADA surveys show that drivers today are keeping their cars on a average of 11 years. General rules of supply and demand would prove that if there are less cars being traded in (low supply for dealers) that the value goes up (dealers demand used cars and have to pay more). Prices for used cars are up nearly one-third since 2008, in part because buyers were looking for cheap used cars during the recession and drained inventory, driving up prices. And without a steady stream of trade-ins, dealers have not been able to replenish their inventories of used cars.
So let’s put all of this in a real world example. I have an eleven year old car, 2002 Buick Regal GS that has 150,000 miles on it. The car still runs good (because of quality improvements cars last longer than they used to) and looks good. The leather isn’t ripped and there aren’t any major flaws in the exterior. KBB.com shows that this car may be worth $2,361 as a trade-in. NADAGuides.com shows that this car may be worth $2,600 as a trade-in. Knowing this it is not hard to see that a $3,000 push pull or drag sale may save the buyer some money and is not going to put the dealership out of business.
The websites and articles that claim push pull drag sale Michigan to be a scam are just outdated.