Bike shops don’t have big parking lots for used cars.
Used car dealers will buy anything, and you can take that cash to the bike store.
You're not wrong
Yes, but in the meantime you no longer have a vehicle to get from the car dealer to the bike shop.
I like the idea in theory, but I think it would be a hard sell of “hey trade in your $10k+ car for this few hundred dollar bike”
Bikes can reasonably get to 1.5k at least without things getting too absurdly overpriced. If there's a trade in it would at least be for bikes in that range.
$1.5k is still not a very expensive bike. Only at the low end of "non trash components".
"Hoo boy, a car? Those take a while to sell, but I know someone who can scrap it for parts, so I'll do you a favour and take it off your hands... Ten bucks?"
Bike shops don’t have big parking lots for used cars.
Used car dealers will buy anything, and you can take that cash to the bike store.
You're not wrong
Yes, but in the meantime you no longer have a vehicle to get from the car dealer to the bike shop.