Trade-ins are a vital component of many automobile transactions. A recent report from the National Automobile Dealers Association revealed that 22 percent of all pre-owned vehicle sales included a trade-in.
Drivers want to get the most value they can for their trade-ins. Though some factors, like the age of the vehicle, are beyond drivers’ control, there are many steps drivers can take before trading in a car to maximize its value.
• Do your homework. It’s never been easier to determine the value of a car prior to trading it in. Resources like NADA, Black Book and Kelley Blue Book can give drivers a good idea of what they will get for a given vehicle when trading it in. According to Kelley Blue Book, roughly 54 percent of trade-in vehicles qualify as “good condition,” so drivers should be realistic as they determine the value of their trade-in. A trade-in value that is designated for vehicles that qualify as “excellent” is likely unrealistic, though not impossible.
• Hone your negotiation skills. Dealers may initially offer less than drivers expect, as they, too, will try to make the transaction as beneficial as possible to their bottom lines. In such situations, drivers who want to get a better trade-in value should be prepared to negotiate. Some dealerships may not budge on their initial trade-in values, but some might, and drivers prepared to negotiate a better value are in the best position to get a good deal.
• Shop around for a deal. Trade-in values may not fluctuate wildly between dealerships, but they likely won’t be exactly the same, either. Patiently shopping around for the best deal for your trade-in can ensure you get the best deal possible. Request all trade-in offers be made in writing, and don’t hesitate to take one offer to other dealers to see if they will match or exceed a competitor’s offer. Don’t discount working with less traditional sellers, such as online dealerships like CarMax.
• Give the vehicle a thorough inspection. No matter what resources like Kelley Blue Book or NADA suggest, no car is going to get top dollar at trade-in if it doesn’t look good or run smoothly. Address any dings or dents, clean the interior and exterior of the vehicle and take the car to a mechanic to determine if there are any issues that should be addressed to improve trade-in value. Dealerships may want to examine the car prior to making a trade-in offer, so the car should be tended to prior to visiting a dealership. In addition, drivers who conduct their own inspections are in better position to negotiate should dealerships point to certain issues with the car.
Trade-ins are a big part of buying and selling cars. Drivers can look to various strategies to ensure they get a great deal on their trade-in.
