Trade-In Allowance
Trade-in allowance is the dollar amount a dealership credits toward a new purchase for a customer's existing vehicle. Learn how over-allowance affects front-end gross.
The dollar amount a dealership credits toward a new purchase for a customer's existing vehicle. Trade-in allowance may differ from actual cash value (ACV) — the difference is effectively a hidden discount. Over-allowance occurs when the trade-in credit exceeds ACV, transferring margin from the front-end deal to the trade-in line item. Because over-allowances shift profit between line items without changing the customer's out-of-pocket cost, they are one of the hardest forms of margin leakage to detect. DealerInt tracks trade-in over-allowances as a form of pricing override, flagging the delta between ACV and credited allowance in real time so managers and GMs can see exactly where front-end gross is being given away.
Category: Finance
Override exposure calculator
How much gross could untracked overrides be costing your store?
Drag the slider to match your average retail units per month. DealerInt customers typically see override leakage drop 30–50% in the first 90 days once every decision requires a reason and shows up on the GM's dashboard.
Est. monthly leakage
$16,800
Est. annual leakage
$201,600
Based on observed override patterns across DealerInt stores. Actual results vary; this is meant to make the invisible cost visible.
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