Getting rid of your old car when acquiring a new one can be a difficult task. You may often need to get rid of it while upgrading yet it may still be in perfect condition. You may have different reasons for disposing it of like to help fund the purchase of your new vehicle or you may need to avoid having two cars, yet you are likely to only use just one among others.
A great way to get rid of it is merely trading your old car in when you are buying a new one. Trading in your vehicle is only taking it to your dealer in exchange for a lower price when purchasing the new car. Trading in your car is a great way to help you get something from the old. Research by Edmunds shows that about 43% of the vehicle purchases in the US in 2017 involved a car trade-in.
However, trading in a vehicle often has challenges that car owners often fall victims too. The dealers may try to get the lowest possible deal at the expense of you getting your fair share from the trade-in. Without adequate knowledge, this can happen even to you. The good news though is that there is a compilation of key tips that should help you get the best deal when trading in your old car.
1. Know the value of your old car
The number one rule of any business transaction is the seller needs to know the value of his or her merchandise accurately. Similarly, you need to see the value of your car before taking it for a trade-in.
Dealers often like selling used cars as they are more liberal to adjust their prices unlike for new vehicles from manufacturers. New cars often come and are sold depending on the manufacturer’s recommended price. This constrains their prices. Hence, they prefer buying used cars. These at purchased for resale, therefore, the lower the acquisition cost then, the higher the profit they will make. This means that they try paying the lowest possible amount when you take your car for a trade-in. They may sometimes take advantage of your lack of knowledge and dupe you into selling your car for a lower price than its actual value. Knowing the value of your old car will help you as it will ensure that the price you ultimately get will be reasonable. It will also provide that the dealers do not take advantage of you. You may know the cost of your vehicle by either visiting several car dealers and try to get a shared sense of the value of the car or visit some select sites or shops like CarMax.
2. Ensure that your vehicle is in the best possible condition
There is no clear way to value depreciation of a car. The difference in price between the time you acquired the vehicle and sold it merely is depreciation. Determining this accurately can be vital to ensuring that you get the best value for your old car.
How your car looks can go a great way in helping dealers to form an opinion of the depreciation your car has undergone. Therefore, keeping it in the best possible condition can ensure that the dealers do not develop negative perceptions about your vehicle. You can provide your car is in the best possible condition by keeping it clean, fixing the dings, scratches, free from stains and smells. Having either of these on the car will give the dealers an excuse to reduce the amount they could have offered you.
3. Your records are vital
Records are vital whenever you are seeking to prove that everything is as you say. You may at times find dealers questioning your vehicle’s repairs or conditions of various parts. Since you have vested interest in the matter, they may not always take your word for it. Records can help you to substantiate your word.
Records can help show essential information like the time you have had your vehicle, repairs, and maintenance that have helped improve the condition of various parts and satisfy other inquiries the dealer might have. This will help as they will help you get a reasonable price. Without the documents, the dealers would have lowered your payout as they attempt to possibly lower the cost of acquiring the old vehicle and lower their liability.
4. Time your trade-in perfectly
Demand and supply drive the prices of vehicles in the market. When the application is higher than the amount, then the rates are higher, but when the supply is higher than the demand, the prices are lower. Similarly, trading-in your vehicle when people are buying cars similar to yours to get a good deal.
You may want to try the seasons when your truck is on demand. For example, you may want to trade-in your convertible during summer. You may also want to trade-in your vehicle when there is a shortage of similar cars on the market as their values will be higher. Similarly, fuel-efficient cars are often in high demand whenever fuel prices rise.
Timing your trade-in correctly will help you get the best deal possible. Other than getting you the best price, it may also ensure that you leverage on promotions meant to entice people to trade-in their vehicles during that period.
5. Negotiate well during the trade-in
The key to any successful business transaction is the ability of both parties to negotiate and come to a win-win situation. However, the dealer, in this case, is out to benefit even at your peril hence you have to arrange to ensure that the trade-in is beneficial also to you.
You may think that negotiating during a trade-in is a walk in the park, but the experience and skill of the dealers may often make your negotiation counterproductive. The good news is this vital tip should help you get the best deal. First, ensure that you have done your research before the negotiations. You need to be familiar with vehicles, not only their general information but also their technical specifications. During the talks, start confidently as this will help the dealers not to underestimate you. You should be prepared to counter the amount first stated to you if it does not match or near your well-researched value as dealers start with the lowest possible amount. Ensure that you have the power and be ready to walk away if the deal is not good enough. This will help you to provide that you do not settle for a lower amount that you deserve. You should ensure that you are always honest as this might earn you goodwill with the dealer which may prove helpful.
Choosing to trade-in your old car that is in excellent conditions can help you in many ways. While it is beneficial, dealers often take advantage of unknowing car owners as they look to acquire the vehicle at the lowest possible amount hence increase their chances of getting better profit when they sell the used car.
These five essential tips should help you get a great deal when you trade-in your old car.