How To Trade In Your Car

How To Trade In Your Car

Many people prefer to trade in their old cars when purchasing new ones. The process is easy and you only have to sign a few papers before driving out in a new car. If you haven’t done this before, you should know the detailed process. Here are the four main steps involved in the trade-in process of your car.

Find out Your Car’s Trade in Value

You need to understand your car’s worth to negotiate a better trade-in price. The first step is to find out car’s trade in value. There are several online evaluation tools that can help you get approximate trade-in value of your car. The process is quite simple.

Just visit the website, enter the required information, and the online evaluation tool will display the figures. Some information that you need includes the manufacturer year of the car, the make and model, mileage, and zip code. Once you have the approximate trade-in value, you can use it as a reference point to strike a good trade-in deal.

Get Dealer Estimate

Prep up the appearance of your car before approaching any dealership or used car dealer. Also, check whether the car needs repairs. If you ignore these things, you will see the dealer deducting repairs costs and you will be left with very little bargaining power. The dealership and the used car dealers generally have one or two car appraisers. Avoid taking your car for an appraisal on the weekends, as you might have to wait longer for your turn.

The dealer estimate depends on various factors like condition of the car, mileage, inventory of the dealer, and the popularity of the car model. Most used car dealers would give a good trade-in price for clean low mileage cars. If you are trading in a popular car model, you are more likely to get a good trade-in price.

Select Offer

While selecting any offer, make sure the trade-in value of the car and the sale price of the new car are in line with online pricing guides. Remember, car dealers want to pay the minimum trade-in price for your car. You need to negotiate the right trade-in price before accepting any offer. If you feel the trade-in price offered by a particular dealer is not right, approach another dealer.

Close the Deal

After you select a trade-in offer, the next step is closing the deal. In most cases, always trade with the dealer that you are purchase the new car from. In some states, in a trade-in deal, you are only required to pay sales tax on the remaining amount you pay for the new car. Make sure you read the trade-in agreement carefully before closing the deal.

Trade-ins have many advantages over selling a car on your own. Follow the steps given and you can avoid most pitfalls of the process and drive away with the best trade-in price for your older car.