Negotiate
“Come in with a good notion of what your vehicle is worth and what you’re ready to compromise for,” adds DeLorenzo. Dealers will frequently make a low offer and expect you to negotiate up. However, you should not accept less than what an industry reference suggests your trade-in is worth.
Pointers are being negotiated. Here are some things to consider while negotiating the value of your trade-in at the dealership.
→ If a dealer representative says the trade-in value you looked up doesn’t apply because they use a different guide, ask which guide they used and look up the worth of your car on your smartphone using that source. Check to see if they are being truthful about the pricing. If you’re underwater on your auto loan, ask the dealer to cover the difference, even if it’s greater than the car’s value. When you’re wanting to use your trade-in to help acquire a new vehicle from that dealership, it could be your beginning point for negotiation. You never know what you might get unless you ask.
→ Make certain that the dealer does not raise the price of the automobile you wish to buy in order to compensate for agreeing to a decent trade-in price. This is a popular strategy employed by dealers who want to focus on their own bottom line profit. It’s simple to avoid – simply ensure that the price of your new car does not increase on any paperwork after you consent to it.
The benefits and drawbacks of trading in your car
Advantages
Speed and simplicity. Once you’ve decided on a vehicle, the dealership will handle the rest of the paperwork. When compared to selling the car on your own, you could save yourself weeks of searching for customers.
Problems with repairs If your car has major engine or transmission problems, you may be able to get a higher price from a dealer who won’t have a hard time finding the parts and competent personnel to fix it rather than selling it on your own to someone who may not have the time or money to complete the repairs.
Possible sales tax exemption. If you have a trade-in, you may be able to obtain a tax discount on your new automobile depending on where you live.
A non-cash down payment. If you have positive equity in your trade-in, it can be used as a down payment on your new automobile, allowing you to have a down payment without having to come up with the money yourself.