 Trade In Tips: How To Negotiate The Value Of Your Used Car
Posted by carsandtrucks on Thursday, November 15 @ 06:08:10 PST
Whether you are buying a new car or used car it is likely you have a vehicle to trade in. The trade is yet, another step in the negotiating process that you need to prepare for. The first tip I can give you regarding your trade is don't show up at the dealership with 6 months worth of trash on the floor and mud caked in the wheel wells. Take some time to spruce it up before asking for a trade value (see Car Detailing Tips). You would never try to sell your house when it is in desperate need of repair, the same holds true with your trade in. Next step, do some research on the market value of your trade. Look at what dealers are asking for similar vehicles in the ads for used cars, check out trade value publications like edmunds and kelley blue book, and search the classified of your local newspaper to see what private sellers are asking. We all tend to
think our trade has more value then what is reality. You have to know the real number. Some dealers will over allow on the trade when giving you a trade value. This simply means they decided on the actual value, say $4000.00 and discounted the selling price of the vehicle you are looking to purchase say $500.00. Now they can show you a trade value of $4500. This tactic is often used when the buyer indicates he is expecting above average actual cash value (ACV) for his trade in. It is important that you know what the ACV is of your trade, so make sure you ask for it. If the a dealer asks you what you are hoping to get for your trade the answer should be what its worth. Let the dealer set the first price.
Keep in mind the dealership is going to offer less then the retail selling price of your trade. This is not dishonest. The dealership is taking on the expense of reconditioning the vehicle for resale, advertising the vehicle, and being responsible for it reliability during thier used vehicle warranty period. If you want retail value for your trade in then you should sell the car or truck yourself. If you choose this direction you must be prepared to advertise the vehicle is for sale, answer inquires, and sell the vehicle in good faith. What will you do if your old truck looses the transmisson 10 days after you sell it. If you don't want the guilt trip that goes with that experience trade it at the dealership.
Also there are tax advantages when trading your vehicle. If your state has sales tax this tax is calculated on the selling price of the new car or truck less the amount allowed for the trade in. In closing, know the value of your trade, spiff it up and clean it out, and never tell the salesman what you want for it. If you keep those things in mind you will do fine trading your used car or truck.
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