How to get a better deal for your trade-in
Over the years, your car has served you dutifully. At some point, though, it’s time for you to say goodbye to old faithful and get yourself something new.
When you buy a new car, you can opt to sell your old car yourself, which can sometimes be a lot of work and stress, or you can take it to a dealer. Dealers are usually happy to take a used car off your hands with little to no fuss. Unfortunately, they’re also pretty much guaranteed to pay you as little as they can.
You don’t have to get stuck with poor value. Here’s how to make sure you get the best value for your trade-in:
Know your worth
“Knowledge is power.” This old proverb applies to knowing your trade-in as well as it does to anything else. Research so you can walk into a dealership with a firm idea of what would constitute a good deal. You want a solid, fact-based position to negotiate from. In Canada the go-to source for calculating the trade-in value of a car is the Canadian Black Book. They use data from across the country to calculate up-to-date values of a wide range of common vehicles and even let you input the car you’re interested in buying to help you find a dealer willing to buy your vehicle.
Value changes based on location as well, and the Black Book takes that into account. If you want to go beyond that, use common car selling websites like Kijiji or autoTRADER to get a sense of what you can expect to see in you local. As long as you get a good general idea of the value of your car, you’re on the right track.
Presentation is everything
When you get your car’s CBB value, you are given low estimate and a high estimate. Whether or not you are likely to get an amount closer to the high estimate is determined by the condition of your car, both cosmetically and functionally. One of the best things you can do to make your car look good is to give it a fresh wash before taking it to the dealer. Clean the interior as well. No one likes to see stains or excessive trash in a car they might be buying.
Interestingly, Auto Trader actually recommends NOT fully clearing out the car before seeing a dealer in order to avoid giving them the impression that you’re there ready to sell. You want them to think you’re still on the fence considering options.
Brush up on your negotiation tactics
Tactics are important. Letting your car keep a “lived in” look is one tactic. When you’re negotiating a car you need to utilize both your knowledge of the car and your knowledge of people to get the best result. Play close attention to your words as well as theirs. Instead of starting off telling them you want a certain price, make sure they know you did your homework by saying “well I was looking at prices online...”
Get rid of dents, scratches, small problems
The dealer will do a quick visual inspection and test drive the car. If they find that the vehicle needs any kind of work, they’ll knock that out of the trade-in value. Small repairs and upgrades include replacing worn out tires, fixing broken power windows, cleaning scuffed up wheels, and other simple tasks that can help your car look better.
When you take your car to the dealership to buy a new one, make sure you negotiate for the best trade-in value for your old car and the best purchase price of your new car.