Knowing how to get the highest price possible when trading in your car could save you a lot of money on your new vehicle.
Why trade in?
If you are looking to get rid of your old vehicle and buy a new one, you should definitely consider trading your vehicle in rather than conducting a private sale and buying a new vehicle independently.
A trade in is much more convenient than a private sale as companies that conduct trade ins really want your business. Vehicle dealerships would rather you went through them and did a trade in and bought your new car from them and so they make the process as easy as possible for their customers.
What is the alternative?
You could of course, sell your vehicle in a private sale. It would probably fetch you a higher price than trading it in, but you would have all the inconvenience of conducting the sale yourself. You would have to take the time to advertise, find out the value of the car and find a reliable buyer.
You could then be responsible for any problems with the vehicle after the buyer has purchased it. It would take a longer time than trading the vehicle in would as you would have to go through the process of selling it and the process of finding and buying a new car.
How the trade-in process works
The process is generally quick and easy and can be done in one day. The company will generally offer a price for your trade in and you can either accept their offer or bargain with them for a better offer. The price the dealership will decide to pay is based on the following:
- The condition of the vehicle
- The age of the vehicle
- Any problems with the vehicle
- If the vehicle still has any warrantees or service plans intact
Once you have worked out a deal with a dealership and chosen your new vehicle, you can conduct the sale very quickly and with no fuss. You will not be liable for any problems with the vehicle once you have given it up which should provide you with some reassurance. The price that the dealership offers you will be deducted from the cost of your new vehicle and you will therefore pay a reduced amount for your next car.
The dealership will obviously charge a higher price for the vehicle than they offered you to cover the time and effort that they will put into the vehicle. They will generally have handled the negotiation, the legal negotiations, working out a new price, finding the new buyer, handling the deal with your new vehicle and sorting out the refurbishments, any repairs, cleaning and maintenance. The car would be worth more to the second buyer because of all the workings the dealership put into it.
Getting the highest possible price for your trade in
Knowing how to get the highest price possible when trading in your car will definitely help you save money on your new vehicle. The following tips will help you to ensure that you get the highest possible price for your vehicle when you trade it in.
- Clean your vehicle thoroughly or have it professionally cleaned inside and out.
- Make sure there are no bad scratches on your car, if there are, get them fixed.
- Fix any minor repairs to your vehicle.
- Always go through a reputable, well-known dealer who you can trust to be honest and reliable in your dealings. You do not want to have to worry about getting a low price or being misled by a dishonest dealer. Find a dealership with a large base of happy and satisfied customers. Look for good references and ask around of your family and friends for advice on which dealership is a good one to go with.
- Always get a second opinion on what your car is worth. Find out from several dealerships what they would offer you and perhaps try to work out what your car is worth yourself.
- Make sure you bargain with the offer your dealer has given you. Stand strong and do not back down.