over allowance definition
If the used car manager sets the ACV of a vehicle at $10,000.00 and the customer receives a trade in value, or allowance, of $11,000.00 the customer has actually received a discount of $1,000.00 from the selling price of the vehicle they are purchasing. This is known as an over allowance. Any amount given to the customer as trade in allowance that is more than the ACV is an over allowance, which translates into a discount from the selling price. Now, let's go back to the trade in value and look at it from the perspective of your customer. First, it is their vehicle. They liked it enough to buy it.