Add customer trade-ins to unit deals, handle lien payouts to finance companies, and stock trades early when needed.
Add Trade-In to Deal
Start the Trade-In
From your unit deal (Quote or Approved status):
Click Add Trade In in Deal Actions
System shows existing customer-owned units on file
Select existing unit OR click + Add Customer Owned Unit for new entry
Watch: Adding Trade-In Video
Complete Trade-In Fields
Field | What It Controls |
Customer-Owned Unit | Which unit is being traded |
Mileage | Current odometer reading |
Type | Miles or kilometers |
Category | Category when stocked (Options depend on what Categories are set up in your Blackpurl) |
Tax Based on Customer Address? | Toggle on for address-based tax rates |
Taxable | Is trade-in taxable? |
Applicable Tax | Tax rate (if taxable) |
Agreed Value | Amount you told customer you'd pay |
ACV (Actual Cash Value) excluding tax | True wholesale value to your dealership |
Lien Payout | Amount still owed to finance company |
Finance Company | Who holds the lien (appears after lien amount entered) |
Appraisal Method | Visual or Service inspection |
Appraisal Status | Pending Appraisal or Appraisal Complete |
Appraisal Notes | Free text for condition notes |
Approved By | Who approved the trade values |
Plate/Reg # | Current registration number |
Expiry Date | Registration expiration date |
Transfer Plate to New Unit? | Toggle on to transfer registration |
Understanding Trade-In Values
Agreed Value: What you're paying the customer for their trade. Shows on all customer-facing documents. Actual Cash Value (ACV): What the trade-in is actually worth to your dealership. Used for profitability calculations and accounting. The Three Trade Scenarios:
Scenario | Math | Result |
Over-Trade | Agreed $8,000 > ACV $7,000 | You're paying $1,000 extra to make the deal work |
Exact Trade | Agreed $7,000 = ACV $7,000 | Paying true wholesale value |
Under-Trade | Agreed $6,000 < ACV $7,000 | You're getting a better deal than wholesale |
Pro Tip: Track both values. Agreed Value keeps the customer happy and closes deals. ACV shows real profitability. Over-trades reduce gross profit on the new unit sale—use them strategically, not habitually. Multiple Trade-Ins: Click Add Trade In again for each additional trade-in unit.
Handle Lien Payouts
What's a Lien?
Customer still owes money on their trade-in to a finance company. Finance company has a lien on the unit—they can seize it if they're not paid. Your dealership must pay off the lien before you can resell the trade-in with clear title.
Example:
Customer trading in unit worth $10,000 ACV
Still owes $2,000 to finance company
You pay finance company $2,000 (lien payout)
Unit has clear title, you can resell it
Customer's net trade value: $10,000 - $2,000 = $8,000
Enter Lien Information
Enter amount in Lien Payout field
Finance Company field appears automatically
Select the finance company from dropdown
Finance company not listed? You need to set it up as a vendor first:
Create new vendor for the finance company
Add "Finance Company" product/service to that vendor
Return to your unit deal—finance company now appears in dropdown
How Lien Payout Processes
At Deal Finalization:
System creates vendor invoice for lien payout amount
Invoice posts to finance company vendor account
Lien amount goes to Deal Trade Clearing GL (temporary holding)
You pay finance company from accounting package
Payment clears the Deal Trade Clearing GL back to zero
Control Account Required:
If you have accounting integration, configure Lien Payout Clearing GL before processing lien payouts:
Go to System Settings > Accounting Integration > Control Accounts
Set up Deal Trade Clearing General Ledger (Current Liability account).
Pro Tip: This GL always returns to zero—it's a true clearing account. Money flows in from deal, flows right back out when you pay the finance company. If your Trade Clearing GL has a balance that sticks around, something's wrong.
Stock Trade-In Before Finalization
When to Stock Early
Normal flow: Trade-ins stock automatically when you finalize the unit deal.
Stock early when:
You've sold the trade-in to a wholesaler waiting for it
Need to start service work on the trade-in immediately
Trading unit sold to another customer before original deal finalizes
Need accurate inventory counts NOW, not later Scenario: You've got a unit deal with a trade-in. Trade-in is worth $15,000 and a wholesaler wants it today. Your customer's deal won't finalize for another week (waiting on finance approval). Stock the trade-in now, sell it to the wholesaler, original deal continues normally.
Stock Trade-In Early
Requirements:
Unit deal status: APPROVED (not Quote, not Invoiced)
All trade-in fields completed Steps:
Complete all trade-in information
Click Stock In Trade-In
Read the warning popup carefully—this action has accounting implications
Click Confirm to proceed OR Cancel to stop
What Happens:
Trade-in gets stock number immediately
Unit appears in your inventory
Trade-in marked as STOCKED on the deal
You can sell it on a new unit deal
Original deal still processes normally when finalized
Accounting Impact (With Integration)
At Stock-In Time:
Debit: Unit Inventory GL
Credit: BP Deal Trade Clearing GL
Amount: ACV of trade-in
When Original Deal Finalizes:
System clears the Deal Trade Clearing GL. Everything balances out.
Control Account Required:
Configure Stocked Trade Clearing GL in System Settings > Accounting Integration > Control Accounts
Create this GL in your accounting package first, sync Chart of Accounts, then assign it in Blackpurl.
Pro Tip: Only stock early when you absolutely need to. It splits the accounting entries across two events (stock-in and deal finalization) instead of one clean transaction. More complexity, more chance for confusion. Default to normal flow unless you have a specific reason to stock early.
Trade-In Tax Credit Rules
Understanding Tax Credit Limits
Some states/provinces limit how much trade-in tax credit you can apply. Rule: Trade-in tax credit cannot exceed unit purchase tax.
Example:
New unit purchase tax: $250
Trade-in tax credit: $275
Problem: Credit exceeds purchase tax by $25
Solution: Enable credit limit to cap at $250
Enable Credit Limit
Go to System Settings > Manage Your Dealership > Settings tab
Find Trade tax credit cannot exceed unit tax
Toggle ON
Scroll down and click Save Changes
When Enabled: Trade-in tax credit automatically caps at purchase tax amount. When Disabled: No limit—full credit applies even if it exceeds purchase tax. Note: This setting only applies to dealerships WITHOUT tax-included pricing. Australia and New Zealand dealerships (tax-included pricing) don't have access to this feature.
Common Mistakes
1. Forgetting to track ACV separately from Agreed Value ACV drives profitability. Agreed Value drives customer satisfaction. Track both.
2. Not setting up finance company as vendor before entering lien System requires vendor setup first. No shortcut.
3. Stocking trade-ins early without understanding accounting impact Split transactions create complexity. Use sparingly.
4. Ignoring lien payouts until deal finalization Get lien information upfront. Surprises at finalization kill deals.