When to Tell the Dealer That You Want to Trade In Your Used Car
You might think that trading in that
used car is the simplest way to roll both
transactions into one. You know that
car dealers buy
used cars
all day long from customers who buy
new cars. You may have even watched friends,
family and neighbors struggle to sell their
used cars. And, the icing on the cake:
You just saw a commercial that implored you to bring in that old heap of metal any way you could —
and the
dealer would give you $4,000 off a new car. You reach for the telephone to
call the
dealer and say, "Take it! It's yours!" Wait, stop. Put that phone down!
Rules for Trading In Your Used Car
- Buying a new car and trading in your used car is not one
transaction. They are two separate transactions. Never combine the two and never allow
auto dealers to attempt to combine both transactions until after you've
purchased the new car.
- Know the trade-in value and the retail value of your used car.
- Make up your mind in advance whether you will settle for the wholesale value of your
used car by trading it in or whether you want to sell your used
car privately. It's a decision between time and money. You can make up to a few thousand
dollars by selling your car privately.
- Never, ever tell the dealer that you want a trade-in until after you have
signed and sealed the new car deal.
To view blue book car prices and receive instant quotes on used car prices, visit the following
websites:
Remember that trade-in value is actually wholesale value. If you want to save money, you want to
buy as close to wholesale as possible and sell as close to retail as possible.
Used Car Trade-in Facts
If you let the car dealer know up front that you want to trade in your used car, you are in for a
world of hurt. Keep this in mind as you read through the realities of trade-ins.
- The car dealer often makes much more money off a trade-in than off a
new car sale. If you play your cards right, the dealer may only make a few hundred
dollars off your new car purchase. If you lack the proper skills in the art of
trading in a used car, the dealer will make thousands off that transaction,
especially if you don't know how to negotiate with car dealers on a trade-in.
- If the car dealer offers you a trade-in value that's too good to be true,
it is and you inquired too early about trading in your used car.
- If the dealer offers you a new car deal that's too good to be
true, you'll pay for it in a lowered trade-in value on your used car.
- The dealer is probably going to net the same amount of money on both transactions combined, no
matter how he presents the deal.
- Even if you have gathered all the facts about your used car, you will not get top dollar from
auto dealers on your used car.
- Your used car is probably worth less as a trade-in than you think. Further, car dealers will use
every little scrape, dent and fleck of dirt against you. Make sure your car is spotless, change all
fluids that need changing and top off all other fluids before taking your used car anywhere near a
car dealer.
Timing is Everything When You Know How to Negotiate with Car Dealers
The next time you buy a car, keep quiet until the end about your used car trade-in and you'll save
yourself a lot of time and money. Take what the car dealer offers you only if you can live with it
and don't hesitate to walk away from the trade-in offer if you can't live with it.
