Trade-in
Also called trade in, part exchange
A trade-in is a watch a customer hands over as part payment toward another watch, with its agreed value credited against the price.
A trade-in combines a purchase and a sale in one transaction, which makes it easy to lose track of where the profit is. The clean approach is to price the incoming watch as if you were buying it for cash, price your watch separately, and then combine them.
Treat the incoming watch like any purchase for your records and intake checks. How trade-in credits are treated under federal anti-money-laundering thresholds is covered in the trade-in article.
Related terms
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Where this comes up
Pages on this site that use the term.
- What's specific to SeattleCompliance guide
- Watch dealing in Pennsylvania: precious metals, second-hand watches, and taxCompliance guide
- Watch dealing in Washington: records, holds, and taxCompliance guide
- The AML rule for precious-metals dealers: are you actually covered?Compliance guide
- Watch dealing in Florida: registration, records, and taxCompliance guide
- Federal rules for watch dealers: cash reporting, AML, and taxCompliance guide
Learn the trade, not just the word
Plain-English guides to buying, pricing and selling watches as a business. Free, and written to be used at the counter.