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that's the formula
although dealers get bonuses per X cars sold that are not made public
trade in should be done separate.
Again they might not play ball, but try to negotiate the new car price first, that way you have at least some idea what you can get it for.
Then negotiate your trade if you have one, although they dealer guys might not play ball since you'd have the upper hand.
Doing it that way you'll keep them from shafting you and potentially doing their cost shifting games to make it look like a sweet deal.
If you have a trade get estimates from blackbook, blue book and NADA. Then look on AutoTrader how much similar cars sell for. And of course clean your trade up and wash it before going in
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