Whether you walk into a car dealer to buy a new car or a used car, the dealer will assume that you
have a car to trade in...and you probably do. Auto dealers want you to trade in your
used
car, because it's one more profit center for them and a very lucrative one at that.
You're going to hear all kinds of things from the
dealer. The salespeople and
managers have an entire bag of psychological tricks up their sleeves. Their job is to
know
how to negotiate a car deal to ensure that you part with the most amount of money
possible.
The dealer will assume that you have done little research on car buying and especially on used car
prices and trade-in values. The salespeople excel at confusing tactics -— mixing metaphors,
interchanging terms with entirely different meanings and contradiction. Trade-in values reflect a
host of variables, some of which are difficult to quantify and that invites
dealers
to use these tactics —- on YOU!
- "We'll pay off what you owe on that used car loan."
Translation: We'll roll that outstanding loan into the new loan when you buy a car
from us and you'll pay off two cars instead of one."
- "Let me have your keys so the boys out back in service can look over your car and we'll see what
we can do for you on that used car trade-in."
Translation: "Now that we have held you and your like-new used car hostage, you
won't leave here until we can wear you down and you buy a new car from us.
- "I'm going to lose money on that used car trade-in."
Variations:
- "You're stealing food from my children's mouths."
- "I won't get a penny over (something far less than the dealer is offering you) for that car."
Translation: "I'm going to make a fortune off this used car when I put it on the
lot with a "no-haggle" or "FIRM" sign attached."
- "After looking over your used car, we have determined that..."
- "Your mileage is way too high"
- "We'll have to fix all those (microscopic) dents and scratches"
- "Your car has a very low resale value"
Translation: "I sure hope you haven't checked out any NADAGuides.com pricing,
since I've just redefined the meaning of the word truth."
- "We're going to give you top dollar on that used car trade-in."
Translation: "Hang onto your wallet! I'll move dollar amounts from the new car
to the trade-in and back and forth until you think you've taken me to the cleaners."
There's another thing that you'll hear at home on television about trading in your used car:
"If you can drive it, drag it or tow it in here, we'll give you $4,000 towards a new car."
Translation: We're going to deduct the wholesale value (or less) of that old box of metal from the
$4,000 and add what's left to the
new car price."
A little knowledge goes a long way when you deal with car dealers. Walk into the dealership armed
with facts and figures. Visit the following sites and print out instant quote information on the
trade-in value of your
used car:
Look for the
Used Car area and then click the Trade-in (or similar) link.
Some of the sites take you to the
NADAGuides.com site.
You can go direct to the
NADAGuides.com site to receive comprehensive information,
including average trade-in value and average retail value on most used cars.
The trade-in value is usually all that you're going to get from a
car dealer
when you trade in your car —- one way or the other!
Never feel pressured to include a used car trade-in with your deal to purchase a new or used
car from the dealer. They're two separate and distinct transactions. The
dealer
may try to lead you to believe that in order "to put you in that
new car today,"
you have to trade in your car. It isn't so. If the dealer will not give you an equitable deal
on the entire package, you can always sell the car yourself, hassle-free—online.
A win/win deal means that you win too and your job as a customer is to ensure that you get a
fair deal whether you're buying a new car or a used car or trading in your old car on another
car.
