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For car buyers who are looking to reduce the cost of a new vehicle purchase, it’s usually “out with the old, in with the new.” Auto buyers trade in their old car in the hopes of saving a bundle on the new vehicle. While some car buyers are able to fetch a fair price at the dealership, customers who are unfamiliar with the trade-in process could end up with a raw deal. Before you step inside an auto dealership, make sure you determine the trade-in value of your car and polish your negotiation skills in order to get the best deal for your vehicle.
Know the trade-in value of your car
You can determine how much your car is worth by checking the prices of similar vehicles and adjusting for your car’s age, condition, mileage, and options. Several resources provide unbiased, current information on used car wholesale prices. These resources include the Kelley Blue Book, the True Market Value pricing service from Edmunds, and the Consumer Reports’ Used Car Price Service. You can also check out classified ads on local newspapers to get a general idea of what other people are asking for their vehicles.
Getting a fair deal out of the trade-in
Consumer experts recommend that you treat the trade-in as a separate negotiation in order to get a fair deal. This means that you should negotiate the price of the new car with the dealer before bringing up the trade-in. Only after you’ve agreed on the price of the new vehicle should you mention the trade-in. Keeping the new-car and trade-in negotiations separate will prevent the dealer from enticing you with a “discount” on the new car while deliberately underestimating the value of your used car.
The used-car wholesale price, adjusted for your vehicle’s condition and options, should provide you with a starting point from which to negotiate with the dealer. Obviously, the dealer will want to pay less than this price in order to make a profit from the resale of your car. At this point, you may want to be a little flexible and realistic about the fair value of your car. No matter how much sentimental value your old vehicle holds for you, the dealer will always see it as just another addition to his used-car lot. If you feel that the dealer is not offering you a fair price, you can take your car to another dealership or try to sell it yourself. Keep in mind that trading-in your car is usually more convenient than selling it privately. With a trade-in, you’ll never have to worry about advertising your car for sale, haggling with a motley crew of interested buyers, or running the risk of a lawsuit if your recently-sold car breaks down. |
