How to Trade In a Car
Want to sell a used car yourself? Or you are looking to trade in the car?
Each process has its own drawbacks and benefits. Luckily, you can make the process easier to manage with a little planning and research.
Trading-in the used car is the quickest and easiest route.
When you trade-in your car, the old vehicle’s value is deducted from the price of your new car. Here are the tips to get the most for your car trade-in.
Determine Your Car’s Trade-In Value:
First of all, figure out the worth of your car to get a reasonable price on your trade-in car. There are many car appraisal tools you can use to find the value of the used car. However, no online car valuation tools are 100% accurate. They provide you the numbers you can use to verify the used-vehicle cost.
Collect all Documents and Belongings of Your Car:
Before asking for trade-in quotes from dealerships, make sure to collect the documents and other items, such as vehicle title (pink slip), auto loan payoff and account information, current vehicle registration, driver’s license, and all vehicle keys.
Which Dealer Can Give You the Best Price?
Call or email the dealership to get the quote on your used car.
Ask them how much they can pay for trade-in if you buy a car from them. They may provide you with a trade-in estimate based on the specifications of your vehicle’s condition. However, most dealers give trade-in quotes after a physical inspection of your car. Pick at least 3-4 dealership.
Keep the Trade-in and Negotiations Price Separate:
Your trade-in and purchase negotiations should be kept separately. Start the deal with the car trade-in first.
Keep in mind that the trade-in price is a credit deducted from the negotiated new car price.
So, opt for the lowest overall price after getting this calculation.
Also, consider the price of your car if you sell it on your own. If the price is much higher than its trade-in price, you might decide to sell the car yourself.
Look for the Tax Advantage:
Most US states let you pay sales tax on the purchase price of the new vehicle eliminating what the dealer is providing you for your car trade-in. The deduction in sales tax in states with rates of 9 percent to 11 percent can be important. Therefore, figure out how much tax advantage is available in your state.
Close the Deal:
When you purchase your new car, trading in your car is easy as the value will be deducted from the new car price.
It means you have to pay the remaining amount for the new car with cash or with a vehicle loan. If your trade-in value is more than the new car, make sure to get a check for the balance from your dealership. If they owe money to you, make sure to get the exact amount in writing.
It can be a bit more complicated if you still owe money on your trade-in.
If you have to choose between two dealerships with similar offers, you like to go for the one at which you are looking to buy your new car. This move might give you some advantage as you are giving the dealership business on both the car purchase and the trade-in.