I’m sure you’ve heard about the option of trading in your used car for a new one, but do you really know the implications of the process? Or how to go about it?
If you’re looking for the lowdown on car trade-ins, I’ve got all the details you need to know right here!
What is a trade-in?
First off, let’s explain the basics: a car trade-in is when you take your current, used car to a dealership, get it valued at a certain price based on its condition and mileage, then apply that amount toward a new car or other used car from that dealership.
What are the benefits of a trade-in?
By trading in your car rather than selling it to a private party, you are saving a lot of time and hassle. Rather than looking up your car value, listing it on several websites, meeting with people to have them check it out and then dealing with the paperwork of passing over the title, you simply take it with you to the dealership when you’re ready to buy a new car and apply the value of that car to your next vehicle purchase. It’s a quite a simplified process!
How do I get the most of my trade-in?
By cleaning your car inside and out, getting rid of any odors, fixing minor cosmetic issues and generally presenting the car in peak condition, you’re sure to get the most value out of your trade-in exchange. You should also do research ahead of time to find out the auction value of your car, so you know what to expect from the dealership. That way, you can use that knowledge if their offer seems a little off. Other tips include:
- Take it in at the right season (ie. a car that’s good in the snow should be traded in during the winter months)
- Bring your maintenance records
- Be wary of extremes. (You shouldn’t go for an offer that’s too low or too high)
When do I do the trade-in?
Though you get the benefit of going to the dealership and buying a car all in one shot, you should treat the transactions separately to allow for the best deal. The trade-in value should be negotiated first, then the new car sale price. Since the trade-in is the weaker end of the deal, you’ll want to establish this before deciding what car you’ll go for.
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