How to get the most money for your trade-in Edmunds says
Most car shoppers focus their time and energy on getting the best sale price during a vehicle purchase. This is understandable considering the purchase price is the biggest number in the transaction. But a lot of these shoppers fail to consider another key factor that can help save money: getting the best value for their trade-in vehicle.
Here are some tips from Edmunds to help you maximize your trade-in value and avoid common mistakes.
Edmunds
What to do before you get an appraisal
A used vehicle appraisal is how much a dealership is willing to pay for your vehicle. It’s based on the status of your vehicle as well as the appraiser’s opinion of it. You can’t do anything about the mileage on your vehicle, for example, but there are other factors you can influence to your advantage.
It’s better to handle vehicle transactions when you have time rather than when circumstances require it. Getting ready to trade in your vehicle before you absolutely must buy a new one will help you prevent costly mistakes.
Decide what to do about possible repairs
It’s possible that your trade-in vehicle will have some issues that you never got around to fixing. In general, it’s probably going to be more cost-effective and less of a hassle to not do the repairs and have the dealership deduct its repair costs from its offer. Dealers can often fix problems for significantly less than you can. Don’t feel obligated to make your car perfect.
There’s at least one advantage to fixing smaller problems yourself, however. Doing so allows you to control the cost of a repair or replacement rather than letting the dealership’s appraiser decide what the cost should be. And signs of neglect will no doubt weigh on the appraiser’s mind in making an offer.
Also, clean your car. The dealership will put any vehicle it resells through a thorough detailing before it goes on the lot, so you don’t need to spend extra for that. But vacuuming the Cheerios out of the crevices will save you both dollars and dignity.
If you’ve got aftermarket parts on your car, consider taking them off and installing the original parts. The value of the aftermarket parts sold separately is likely a lot higher than the dealership’s valuation.
Be ready to negotiate
Remember that you surrender all your power in a negotiation unless you’re willing to walk away. So don’t rely on the dealer where you’d like to buy a new vehicle to give you the best offer. Be prepared for a low offer and know what you’ll say when it’s presented.
Remember that when you trade in a car you’re accepting a lower price in exchange for being relieved of the hassle of selling it yourself. Essentially, you’re paying the buying party for any reconditioning your car may need as well as for the paperwork and possibly the marketing of your vehicle. And that sale needs to be a price the dealer can profit from, so don’t expect a retail price for your trade-in.
This is where being prepared matters. Having a clean, well-maintained vehicle will put you in a defensible position with the appraiser. Be prepared to make a case for your car’s value by pointing out areas where the dealer won’t have to spend money – tires, for example.
Online valuation tools will give you further evidence of your car’s value, and most generate both a private-sale and trade-in value.
Get several offers
Even more powerful than a clean vehicle and valuation arguments is having another offer or two in your pocket. There’s no shortage of ways to do this – including Edmunds or other sites where you can enter your car’s mileage, condition and VIN and generate an offer.
Consider a private sale
You’ll put more in your pocket if you sell your car yourself, but doing so comes with distinct drawbacks in time and risk. If you decide on a private sale, familiarize yourself with your state’s laws. And be keenly aware of potential fraud.