If you know how to trade in your car, you can save big on the cost of a new vehicle. That’s because the value of your used car can be applied directly to the purchase of a new one. Trading a car is very convenient (the dealership will handle all the paperwork), but it can also be very complicated. After all, there’s always the chance that you might not get the best trade-in value when working with a dealer.
As such, it’s important to do the research and take the time to shop around for the best offer. While the process can be a confusing one, there are some things to keep in mind that can help.
How to Trade in Your Car
Determine Your Car’s Value
Before you trade in your car, you’ll want to know its value. That way, you’ll be able to negotiate with the dealership without the fear of getting a low offer.
While it can be difficult to get a true figure of its worth, there are some websites that offer realistic valuations for used vehicles. Sites like Kelley Blue Book, Edmunds, or NADA Guides can give you an estimate of your car’s trade in value. For an estimate, you’ll need to enter basic information like make and model in addition to things like dents, wear, or mechanical issues.
Another option is to look online or at local listings of cars that are similar to yours. This will provide you with an idea of the current market value and what people might be willing to pay.
Make Sure It’s Clean
It’s important to make sure you get your car as clean as it can be. And we’re not just talking about the physical appearance of your car! In addition to washing, waxing, and vacuuming, you should also fix small issues if you can. That includes replacing burnt-out lights, topping off fluids, and repairing minor scratches.
Doing this will make your car more appealing to the dealership as it’s less work for them to turn around and sell it. The more appealing it is, the higher price you’ll likely get for it. You’d be surprised at how much more money you can get by just putting in a little effort.
Have Your Documents in Hand
If you want to trade in your car to a dealership, you absolutely have to have the necessary documents. Not only will this speed up the trade in process, but it also gives the dealership more reassurance about their purchase.
At the very least, you’ll need to provide the title, which proves ownership of the car, as well as the registration. If you have a loan, then you’ll need to work with your lender to help with the payoff process. In this case, you’ll need to bring a payoff statement or account number to show how much money is still owed.
You may also want to show paperwork on past maintenance checks. If the dealer sees how well you’ve taken care of your car, they may be more inclined to increase their offer price.
Get Different Trade In Offers
Similar to shopping around for car insurance, it’s always a good idea to shop around for offers. Although it may be tempting to take the first offer that is given, it’s smarter to get multiple offers from different dealerships. You might find that one dealer will give you a better trade in value than another. And if they are aware you are shopping around, it can incentivize them to even increase the value of your car.
In addition to in-person dealerships, you may also want to get an offer from an online company like Carvana. Many of these sites will give you a no-obligation quote in just a few minutes, making it easy to sell or trade in your car quickly.
Don’t Be Afraid to Negotiate
Despite what the dealer may tell you, offers on the trade in value of your car are generally negotiable. That means there may be some wiggle room in order to get a better deal. If you have offers from multiple sources, then you can use the highest offer as leverage in negotiating.
It’s also recommended that you keep the negotiations between trading in your car and purchasing a new car separately. This ensures that you’re getting the best deal possible for both arrangements. Not only that, but combining them into one offer can make things extremely complicated when it comes to paperwork.
Working with a Dealer vs. Selling Privately
When deciding how to trade in your car, you may want to consider selling it privately. Working with a dealership can be convenient, but it’s usually not the best deal in terms of value. That’s because they need to resell your car for a profit.
Instead, you can get a higher price if you sell the car yourself. It will be more work on your end, as you’ll need to handle the paperwork and advertising on your own. But selling privately allows you to set the price and earn more than what a dealership will offer.
It’s also worth noting that selling privately is not a trade in. Unlike working with a dealership, that money will not be applied directly to the purchase of a new car. However, you can put those proceeds toward the down payment or purchase of a new car (even though that’s a separate process).
By now, you should have a better idea of how to trade in your car. While it can be a complicated process for some, these tips can help make things as straightforward as possible. With a little bit of time, effort, and research, you can ensure that you’re getting the best deal for your used vehicle.
