What To Be Ready For When Trading In Your Car

What To Be Ready For When Trading In Your Car

If you are looking into purchasing a new car but do not know what to do with your old one, think about these tips when considering a trade with the dealership. You want to be as prepared as possible in order to receive the highest price possible for your car. This could mean lower monthly payments for your newest purchase. No matter what business you are working with, all Honda, Nissan and Toyota dealerships work in much the same fashion. They want to make a hefty profit as well, so if you approach them about a possible trade, expect to hear a low offer. Once they acquire the car from you they need to clean it up and pay for possible repairs and still be left with a profitable margin. There are some things you can do, however, to produce a best case scenario for you and the dealership.

Trading In Your Car
trading in your old car

Know the Car’s Worth

With little time and effort, you can research what your car is worth so you can start with a fair expectation. The most popular used-car pricing site is Kelley Blue Book. It will guide you through the condition of your car (be sure to be honest with yourself) and then provide a price for trade-in, retail and private party sale. You can also peruse your local classifieds to find a comparable car and see what others are asking for it.

Don’t Disclose your Intent Right Away

It’s seen as wise business to hold off on letting them know you intend to trade in your car. You should let them know that you are not sure and would rather work out a deal for the new car first. This way you can be sure that they aren’t increasing the asking price of the car to compensate for a high price on the trade-in. If you do decide to trade your car in lieu of a down payment, be sure the salesman adjusts the asking price and monthly payment with it included.

Let them do the Offering

When the time comes that they need to know if you will be trading in, do not reveal what you want to get out of the car. If you happen to mention a price lower than the dealership is willing to pay, you’ve cut yourself short. Ask them what they think it is worth before you start working on a deal. If it makes sense then of course go for it, if not, you do have other options.

Stick to your Guns

If the dealership continues to offer you a trade in value well below what you have determined is fair, evaluate your options. If you can come up with a down payment some other way, it might be best to sell the car independently.

With the right attitude and preparation you can create a situation where you will be happy with your trade-in value and experience a low-stress transaction, no matter what dealership or salesman you are working with.

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