How much do auto dealerships profit from trade-ins?
According to industry sources, dealers can earn between $1,000 and $2,000 by reselling trade-ins. If you want to know how much the dealer can make on your car, compare the retail value to the trade-in value. The difference is essentially what the dealer could gain by reselling your automobile, excluding any cleaning and repairing fees as well as any business overhead expenses such as advertising.
Look around for trade-in values.
Trade-in offers might vary based on what the dealer already has in stock, the condition of the vehicle, and how well the dealer believes the vehicle will sell. Get a couple trade-in bids from multiple dealers to avoid some of the back-and-forth negotiations with one dealer. Get a quote from one, then go to another and ask it to beat the first. Make certain that all offers are in writing. Here are some possible destinations:
A dealership of a separate brand. Take your vehicle to a dealer who does not sell your vehicle’s brand. Taking your Ford to a Nissan dealer, for example, because a non-Ford dealer may offer you a better deal. There are fewer Fords to compete with, and “if the car you’re driving was a popular rental, lease, or fleet model, they also transact at cheaper pricing,” adds Matt DeLorenzo, managing editor for Kelley Blue Book. If you travel to the same brand’s dealership, you may be “competing against those depressed prices with your privately owned vehicle.”
A secondhand automobile dealership. CarMax advertises rapid, free trade-in quotations, so going there may be a relatively straightforward way to acquire a written trade-in offer.
Services available online. Some websites will buy your trade-in online. An offer from an internet business may be handy whether you trade in your automobile for a new one or sell it through an online site. One website you could try is KBB Instant Cash Offer.
Collect documents
You’ll need the following documentation to formally trade in your car.
Title to a car Bring the title if you own the vehicle. This demonstrates that you legally own the vehicle and have the authority to transfer ownership. Don’t get too worked up if you lose the crown. Dealerships normally maintain a paperwork on hand that you may sign if you need to replace a missing title. However, you must still establish ownership, which you may accomplish using your car registration.
Vehicle registration. Whether or not you paid off the car, the registration may serve as proof of ownership.
Information on loans. If you’re still paying off the car, bring your loan information with you, including the lender, account number, and the amount you still owe.
Records of maintenance. Bringing these could help demonstrate that you’ve taken care of the automobile and that it is worth a premium price because it is in decent, if not prime, operational condition.
