The Pros and Cons of a 'Dealer Trade'

What is a "dealer trade" or "dealer swap"?

A dealer trade, or dealer swap, is when your local dealer doesn't have the exact vehicle you want but it wants to keep you as a customer, so it makes arrangements to trade car inventory with another dealership. If they're willing to do so, dealerships have the unique ability to reach out to other dealers in their network to find the exact car the shopper wants, whether it's a certain color, trim level, options package or drivetrain. 

The dealer trade sounds simple on paper, but it can have some potential complications. 

Imagine this. The new car model you've been tracking has finally made it to local dealerships, maybe months or even years after it debuted. You've scoured the reviews, clicked through the videos, maybe even played with the build configurator. You're more than ready. But what if the dealer isn't?

Let's say the dealer's first allotment consisted of only black, gray or beige models, and you wanted — dreamed of — the latest, greatest model in a Midnight Frost Azure Cerulean Metallic coat. Or, more pragmatically, you want a certain trim and package that the dealer doesn't have in stock, or maybe you don't want that new car overloaded with features you don't want to pay for. This is when the dealer trade can come into play.

Jump to:

How do dealer trades work?
Can you still negotiate the price on a dealer trade?
Are there extra costs with a dealer trade?
What are the pros of a dealer trade?
What are the cons of a dealer trade?
Is a dealer trade right for you?

How do dealer trades work?

Most car dealerships don't want to turn away business. Even if they don't have the car you want, they have an answer. 

"A dealer wants your business, especially if you are local to them," explained David Thomas, director of content marketing at CDK Global and a car buyer who has gone through the dealer trade process. "A new car sale will likely translate to at least a few years of service business while that car is under warranty, and if the buyer lives close by, the dealer sees the full scope of revenue the deal can make. This is less likely if you're buying from a dealership 50 miles from your home because you were trying to find the best bottom-line price."

In a dealer trade, the dealer informs the shopper that it's contacting other dealers to find that exact car in stock somewhere. 

Dealerships use an exclusive search tool to input the kind of granular data needed to locate that exact car of your dreams. It's much more precise than an automaker's configurator.

"Dealers generally use a dealer-facing [automaker] inventory website to find exactly what they're looking for and for determining if the other dealer is amenable to a trade," Thomas said. 

When you agree to a dealer trade, the dealership will likely request a deposit or have you fill out a credit application to make sure you stick to the deal. If you put down a deposit, make sure it's refundable in case the dealer can't find a trade partner or if you change your mind. 

Since dealerships often maintain relationships with other dealers of the same brand in the area, it's relatively common to pull off a swap. The dealership you're starting at, let's call them Dealer A, may exchange another in-demand car to Dealer B, which has the car you want in stock. If Dealer B has enough inventory,  might turn down a swap for a future trade or just to maintain a good working relationship. 

Dealer A then sells the car to the shopper, serving as the single point of contact and simplifying the shopping experience. 

Can you still negotiate the price on a dealer trade?

Absolutely, but only if you negotiate the deal before the trade is made. Essentially, the shopper should behave as they would on any other car purchase, except the dealer may require a deposit so you automaker's back out. Once a price is agreed upon, get it in writing to lock in the price.

"A dealer will ask for a deposit to be applied to the final purchase price," Thomas explained. "You should have a fully executed price agreement [sales contract] by this point, yet not go through the final signing process until the vehicle is physically there. There should be no changes to the price between that agreement and the final signing."

Are there extra costs with a dealer trade?

It depends on the dealer. Many dealers add a line-item charge for executing the trade because they want to keep the business. 

"They may not offer as low a discount, perhaps, but often there is not a line item on the deal adding a charge [for the trade]," Thomas said, citing data as well as his own dealer trade from the Chicagoland area to a dealer in Ohio.

Thomas expects fewer discounts and less room for price negotiations for the remainder of 2025. Tariffs on European and Asian automakers will likely shrink the availability of certain imported models, such as a German luxury sedan, so the dealer trade may add a transportation cost to the total bill. 

"You may have more dealers adding a line item for the transportation of the other vehicle," Thomas said. "Here, the buyer has to decide if the exact car they want is worth the additional cost of this service or not."

What are the pros of a dealer trade?

Dealer trades are faster: A shopper can custom-order any car any way they like it via the automaker's configurator, but it could take months for it to arrive from the factory. Dealers have an established network to match the desired car with what is already in inventory. It's a matter of getting the car from one place to another instead of waiting for it to be built.

Dealer trades are more convenient: It is a lot less work for a shopper to let a dealer work out a trade on their behalf. The vehicle you're seeking could be in the next county or next state, and it takes work to track it down and arrange transportation. Dealer A handles all of the details for you. No more time-consuming searches by you. 

One point of contact: You get the exact car you want, how you want it, usually within days, without having to visit multiple dealerships and interact with multiple salespeople. Dealer A remains your main and usually sole point of contact, from stepping foot into the dealership to negotiating the price and walking out with the keys. 

What are the cons of a dealer trade?

A dealer trade could result in a higher price: Whether it's Dealer B or Dealer Z, they have the vehicle you want, and they set the price. They may not be willing to meet the price you negotiated with Dealer A. You may have to take on the transportation cost to get your desired car from Dealer B to Dealer A, and Dealer A might want a little extra for the effort. If you're price-sensitive, it would be advisable to keep shopping. Employing a car concierge or car broker who does the legwork for you could save you time, and it might be more cost-effective than a dealer trade.

No guarantees on securing the car: Dealer A might not be able to track down the car you want. It might not exist anywhere in your region or elsewhere. Just because they've offered you a dealer trade doesn't guarantee they'll find a trade partner.

Certain high-demand vehicles won't apply: A dealer is unlikely to trade a hot car that's popular on lots, especially if manufacturer outputs or dealer allotments are limited. 

Potential damage during transport: "It may be a new car, but whether it's driven from one dealer to another or put on a flatbed or transporter, it could get damaged," Thomas said. He advises customers to do a walk-around of the vehicle to examine for rock chips on the ends of the car as well as the windshield before signing the final paperwork. 

Is a dealer trade right for you?

There's no one clear answer that can determine if a dealer trade is right for you. It all depends on how badly you want this car in the spec you want it. If you want it now and are willing to potentially pay a nominal upcharge, then a dealer trade makes sense. Also, if you like working with a certain dealer, then it makes sense to see if your dealer can do the work for you. 

However, if price is your No. 1 concern, then it pays to shop around on your own. 

No matter what, make sure you negotiate and agree on a price before agreeing to a dealer trade. Get it in writing, and define what will happen if the dealer can't find a car to trade, such as whether the deposit is refundable.