How to ensure you get the best deal on your trade-in

Tips and advice on how to get the best deal on your trade-in when you are buying a new car from a dealership.

When it comes time to trade in your old car for a new one, it is in your best interest to get the best trade-in price, while it is in the dealership’s best interest to pay as little as possible for the vehicle. So, how do you get the best deal from people who are essentially working against you? This article lays out a series of steps to follow to get the best deal on your trade-in vehicle.

Step #1: Know what your car is worth

Just because you love your decade-old car and think it’s worth $10,000 dollars doesn’t mean its market value is that high. To determine the value of you vehicle, you can use a car-pricing guide available at a bookstore or online. Cars are valued by their condition—excellent, good, fair or poor. Pay close attention to the guide’s characterization of each category. You may think your car is in excellent condition, but the worn tire tread, high mileage and slightly damaged interior will knock it down to at least the good category. If you are not sure about the right category, you can get a professional appraisal from a local body shop. If you do get an appraisal, be sure to get an official copy to take with you to the dealership when it’s time to trade in your car. If you do not want to get an official appraisal, look online for an appraisal guide that asks specific questions about your car’s condition, and print out the results to take with you to the dealership. When you are looking at the value, notice that the trade-in value is lower than the vale if you sold it directly to another person. If the difference is significant, and you think you have a good chance of selling your vehicle quickly at a price higher than the trade-in value listed, consider selling your car yourself. The downside of this approach, of course, is that you may not be able to find a buyer, while the dealer will usually be willing to offer you at least some money for you vehicle. To get a reality check, look in your local newspaper to determine the going rate for similar vehicles in your area.

Step #2: Fix what you can

Looking at the list of conditions that can affect your car’s rating, you may notice some items that negatively affect the rating that can be easily fixed. While you can’t roll back the odometer, you can clean the interior and fix and minor rips in the fabric; clean the car exterior and remove any visible rust; buff out minor scratches on the car body; and replace any burned out interior and/or exterior lights. Do not perform any major repairs, such as replacing the engine or replacing the tires, unless you can do it for a very good price that raises the value of the car enough to more than offset your investment. Before taking your car into the dealership, give it a good wash and wax to make it really shine.

Step #3: Negotiate, negotiate, and negotiate

When it’s time to take your car into the dealership, come in prepared with an idea of what the book value of the car really is. The salesperson will look your car over, then usually discuss the value with a manager and give you an estimated value. The dealership’s initial offer is usually lower than the book value, which is where your written estimate comes in handy. Bring out you copy, and show it to the person you are negotiating with, to give a solid reason for raising its trade-in value. Be aware that, as a result of the large number of zero-percent interest deals the last few years, many dealerships are overwhelmed with trade-in vehicles and are less willing to negotiate on trade-in values. If you cannot reach an acceptable amount, you will have to choose between accepting less money, or trying to sell the vehicle yourself. However, if successful, the combination of being well prepared and negotiating for a better deal should net you a good deal on your trade-in vehicle.