Here is a question that has bothered me for a while. The numbers are rounded to simplify the question, but the concept remains the same. (Don't worry, I did not trade in the X5 . . . the names were changed to protect the innocent.)

When I traded in my BMW, the Benz dealership offered $30,000 trade in value.
The dealer agreed to sell the brand new Benz for $50,000.
(The MSRP was $55,000 so I saved $5,000)

My cost would be $20,000. (plus tax, title, Lic)

When the sales contract was drawn up, the Benz price was raised to (the MSRP) $55,000 and the BMW trade in value was raised to $35,000. My cost was still $20,000 (plus tax, title, Lic) but the numbers were falsely elevated to show the dealer selling the Benz for 5 grand more and giving me 5 grand more for my BMW.

When I questioned the number changes, they said it is standard and they have to do it that way. Since I still paid the same amount, I let it slide. But it has always bothered me a little.

Why do they do this? Did they really have to change the numbers? It was a straight cash deal.

Thanks in advance for your insight.