Dealer Trade

A dealer trade (also known as a dealer swap) is a process where two dealerships exchange vehicles from their inventory to meet a customer's needs. This typically happens in new car sales: for example, a customer wants a specific colour and trim combination that Dealer A doesn't have, but Dealer B (in another city or nearby) does have it. Dealer A will call Dealer B to arrange a trade, offering something in return – either a specific car from A's inventory that B wants, or an IOU for a future swap, or sometimes even buying the car at a wholesale price. Once agreed, they physically exchange the vehicles (often via a dealer trade driver or a transport truck). In Canada, dealer trades are common due to vast geography; a dealership in one province might even trade with another province if necessary, though usually trades are within a reasonable distance because the car has to be moved. Paperwork involves transferring the vehicle in the manufacturer’s system from Dealer B to Dealer A so that A can sell it and register it to the customer. The cost and credits are handled between the dealerships (sometimes an invoice is sent). From the customer's perspective, it means they get the exact car they want without waiting for a factory order. Dealers manage trades carefully: you generally trade cars of roughly equal value/popularity to keep the inventories balanced, and excessive trading might affect allocation (manufacturers often prefer local sales, but trades are accepted practice). Overall, dealer trades enhance customer satisfaction by providing more choice, and they showcase inter-dealer cooperation – ultimately to avoid losing a sale if you don't have the car someone wants. A streamlined trade process means quick communication, fair negotiation, and efficient logistics to get the car ready for the customer as if it were originally in stock.