5 Important Things To Know Before You Trade-In Your Car

You just had enough of your old Hyundai Elantra, and now you think it’s time to bid it farewell and buy yourself a new car. You decide to do the only logical thing – sell it. But before you do, is it really that easy? Is it really as simple as people make it out to be? Do people who put their used Ford Escape for sale really go through the same process as the people who put up used Honda Civic for sale? What are the nuances?

Well, generally, trading in your car can be a fairly simple task, at least on the outside. Trading in your car means selling your car to a dealership and not selling it to an individual by yourself. You give them a call, you set up an appointment, they come to your home and take your car away and give you the money. However, there are five important things that you need to know before you trade-in your car.

Research the value of your car

Before you trade-in your car, you must know what your car is worth and how much you should be paid for it. Of course, if you have no idea about the current market, then you must do your proper research before handing the keys over. Not every car will have the same rate of depreciation. Some cars have way better resale value than others. So, you must be wary of these things.

First, you must check the book value. A book value is an approximate value that does not necessarily reflect the actual value of the car in the market. As a result, you must first check it in order to get a generalized idea of what your car might be truly worth.

After that, go online and look for local markets and the price the specific model year of your car will bring. Of course, depending on the area, the prices of the same car may vary in the used market. It also depends on the additional options added, miles driven, condition the car is in, and other factors. Check your local market to be sure of the exact pricing for which your car is being sold at. If your car is in near-perfect condition, then it will fetch you more money than an old beaten-up car. Be sure to check the depreciation rate of the car online.

You can also get your car appraised. It’s quite easy nowadays and it can be done in just a few minutes now.

Make sure you let the dealer know about your car

Most dealers will inspect every nook and cranny of your car before you can sell it. Some dealers are pretty good at their job. They will look for every scratch and identify every bit of misfortune that your car has had to endure. This is why you must make sure to let the dealer know that you are knowledgeable about your car.

Dealers will walk around your car, inspecting all single bits and pieces. The more imperfections they find in your car, the more likely you are to get a smaller value for your car. However, you don’t have to be silent during this process. Make the dealer feel at home. You can ask them questions and encourage them to ask questions to you about your car. Make sure that they recognize the fact that you know your car more than anyone else.

Make sure you establish a connection with the dealer. Even if they find any imperfection, you can easily try to explain and confirm that it won’t cause any issues in the long run.

Try to understand the dealer and their perspective

Just as much as you want to gain a profit by selling your car, the dealers do too. However, a dealer has to deal with much more than just taking your car and putting it up for sale. You must try to understand the dealer and why they are not willing to pay the exact amount you want.

Dealers also have to invest a lot after they take your car. If your car is broken and beaten up, they have to invest to make it look like new. They might change a few parts, polish it and give it a new shine. Then, they need to put it up for sale, hoping that someone would buy it for a profitable margin.

They also have to deal with administrative costs, such as transferring of title and registration, organizing the sale, maintaining the car, and so on. So, you must try to put yourself in their shoes and understand why they are not willing to pay the amount that you desire. Then, you must negotiate.

Keep the car in the best possible condition while selling it

You have to keep your car in the best possible condition before a dealer comes to take it away. If you want the highest possible amount for your car, make sure you do not slack off on the maintenance of your car. A dirty car will also reduce the value the dealers will be willing to pay.

Remember that every time you keep your car unclean, the dealers will have to pay in order to get it cleaned. That means less money for you. So, if you do your due diligence and keep your car squeaky clean, not only will it impress the dealer, but it will also make sure that you get your money’s worth. Also, you must make sure that your car is kept up to date with all the servicing and maintenance. It will automatically put you in a better position.

Check the state’s trade-in tax laws

Last but not the least, you must be wary of the taxes and all the other formalities. 44 states in the US will offer you a sales tax credit when you trade-in your car. Of course, you must research about it and bathe yourself in the knowledge. Find out how much you can save on taxes.

When you trade-in your car, it can often land you a deal with hundreds or thousands of dollars off when you go to buy a new car. Thus, you can probably upgrade to a higher trim or add some additional options which you wouldn’t have been to, otherwise.

So, always keep an eye out and try to be up to date about the market. Be sure to know about all the nooks and crannies of the deal if you want to squeeze out every last dollar from your car so that your new ride can be even more special.