Many new vehicle purchases in a dealership involve a trade-in. When shopping for a new vehicle, getting the most money for your car trade-in can help lower your monthly payments. It all begins with researching the value of your existing vehicle. This is simple to do through various online sites, including Kelley Blue Book and Edmunds. These handy online resources will provide an accurate idea of your vehicle’s trade-in value, as well as an estimate of value if you were to sell on your own. Be realistic with the estimate of your car’s condition for a more accurate estimate. It’s a great starting point for an idea of worth before beginning trade-in negotiations at a dealership. Your trade-in amount will come right off the cost of the new vehicle. If still have an outstanding balance on your old auto loan, and your vehicle appraises for less than the remaining balance, you’ll have to pay the difference or roll the remaining balance into your new loan.
Negotiate new vehicle first, trade-in second
Don’t lay all of your cards on the table when entering a dealership and shopping for a new car. This is an important tip when it comes to getting the most out of your trade-in. When you find the vehicle you want, negotiate a price without mentioning your trade-in. When you’re happy with the deal, get the price in writing. Only when you’ve reached an agreement on a price should you discuss your trade-in. This will help to prevent the dealership from figuring trade-in into your new vehicle price. The dealership will do a quick appraisal of your vehicle and you can negotiate a trade-in amount. The make, model, mileage, and overall condition of the vehicle will determine trade-in value, as well as the demand for that type of vehicle. You can shop around dealerships for a better trade-in deal, just like you would for a new vehicle. You will have a good idea of value from your trade-in research on various sites.
Improving the value of your trade-in
There are several ways to improve your vehicle’s trade-in value. First and foremost, keeping your car in tip top shape through regular maintenance and upkeep goes a long way in maintaining a vehicle’s value. When getting your vehicle serviced or repaired, keep a record as proof of care. Giving your car a thorough cleaning prior to trade-in and making any necessary minor repairs can also help increase the value. Doing expensive repairs or adding things like new tires may not be worth it. Keep in mind that the two biggest factors that affect vehicle depreciation are age and mileage. Edmunds recommends trading or selling a car a few thousand miles before the 36,000 mile mark or before the major service visit.
Finally, it may be most lucrative to sell your vehicle privately. Trade-in offers are usually lower than you would get from a private party sale. The plus of a trade-in is that is more convenient and demands less work on your part. That may be a big benefit to many.
Auto loans made easy
Guthrie Community Credit Union offers competitive rates and flexible terms on new and used auto loans. Get pre-approved before shopping for even more buying power at the dealership. Our handy auto loan calculator will give you an idea of your payment based on vehicle price, down payment, trade-in, interest rate, and term. View all of our auto loan rates for new and used vehicles, as well as motorcycles, ATVs, and other recreational vehicles. Guthrie Community Credit Union’s new Advantage Plus Auto Loan can help provide a payment significantly lower than conventional auto loans with no down payment required. It’s a great alternative to a traditional auto loan for those looking for an even lower monthly payment. Learn more today.