Mark - who would set a trade in value? Set by who?

Here is the key fact about dealing with anyone in the car business - they are always going to be better at buying & selling cars than you are. I know that is a crappy fact, but its the truth. I don't know how many car deals I have been involved in as of today, but I know I was over 10,000 in 2006. For fun we sit around and guess the book on cars. I work with a guy who memorizes VIN#'s for fun (he is weird). I can structure car deals in my head & that is a common trait. My point is that anyone with any tenure in the car business is an expert. Take the deal that you are happy with and proceed. A little insider tip is that if you are happy with your car deal then the dealership probably made some money. If you are really happy then they probably made a lot of money. Usually the ones who think they got screwed the most actually got the best deal. One of the little ironies of life.

As far as dealers protecting themselves from loosing at the auction, there really isn't a way to make that happen. I have had the book values on a vehicle change $1000 in a week. You couldn't even get a car to the auction & run it within that time period at most franchise stores.

I think the dealer in this case told you something that he figured you make sense to you & therefore make you feel better about the deal. That happens a lot. Its called closing.