When trading in your car at a dealership, you want to maximize the amount you get from the dealer. It can dramatically affect the different figures or monthly payment figure if you put some prep work into it first.
1. Check the Value – Before you start, however, it’s important to find out what the market is reporting on your car. The most well-known is Kelley Blue Book, and they do a nice job of giving you a range of what the car is worth depending on the condition. Please note that they also have a product called “Instant Cash Offer,” which is actually an online appraisal and lead tool. If you complete that, you will be contacted by a participating dealership. If you’re not ready to talk to someone, make sure you use the regular valuation tool. There are other sites out there, namely Edmunds, TrueCar and NADA. This should give you a general idea of the market so you can properly set your expectations.
2. Examine Like a Buyer – This might be the hardest part, but take a step back from the car and look at it from a buyer’s perspective. Would you buy your car? Take away your personal feelings (“Oh, this is the car we drove to the hospital for the birth of our first child!”) and try to be objective. What needs to be fixed on the car? How are the tires? Are there dents, dings and scratches all over? How does the interior look? You certainly can spend a little money in this area and recoup your dollars, but you can also overspend and never get the money back. Check out this article from CarGurus on helping you make some tough decisions.
3. Maintenance/Repair Needs – this is probably the one thing owners overlook the most. Does your car need minor or major repairs? We’re not talking oil changes or tire rotations (the dealer will do that most likely anyway), but rather things like squeaky brakes (may be worn out), leaks or an air-conditioning system that’s not working. If you’re not going to fix them, know that the dealer will figure them into their offer.
4. What’s Missing? – Is your car missing any equipment? Do you have both sets of keys? If not, prepare to have a few hundred dollars deducted (keys are expensive!). Check to make sure you have a good spare tire (people have been known to “forget” to replace it after a flat). If you have a truck or sport utility that came with factory accessories, find them (in your garage, right?) and bring them along.
5. Tell the Story – Find all the maintenance records from the time you’ve owned the car. Regular care tells the dealer that the car has been well-maintained and will be perceived as more valuable by the next person who buys it. Was your car in an accident? Save those records too. Having proper repairs completed by a certified body shop can help you get more money than you otherwise would.
6. Clean It – No matter what repairs you choose to make, the one thing you want to do for certain is clean the car, whether that means you do it yourself or hire a professional detailer. Nothing says “pride of ownership” better than a nice, clean car presented for trade in.
Now you’re ready to venture out and get some offers. Don’t be afraid to negotiate the value of your car separately from the new (or pre-owned) car you’re buying. A competent dealership knows how to give you a fair value. And also feel free to give multiple stores a shot at buying the car. Nothing like a little competition to increase the value!