Start Asking For Offers
You dont have to go to the dealer to start the trade-in process. Instead, you can make dealers come to you with a price. Many online value estimators such as Kelley Blue Book and TrueCar are linked to dealers that will extend offers based on the information you share about your car.
It also may be smart to start your negotiation where your car started its journey.
If the consumer is able to go to the same dealership where he or she purchased the car, he or she may be able to negotiate a better deal since they have a relationship and history with that dealership, says Meghan Davlin, director of communications at the Illinois Automobile Dealers Association.
When Should You Trade In Your Car
The new car you bought 3 years ago for $30,000 is worth just over $15,000 today, and youre thinking it might be time to trade it in before its value vanishes completely.
While getting rid of that used vehicle might seem like the smartest move, you shouldnt use the last couple of years of depreciation as an indication of what will happen next. Its important to carefully consider timing and value to understand the best time to trade in your car.
How To Get The Most Amount Of Money For Your Part Exchange
There are a few simple steps you can take to maximise the value of your part exchange:
- Firstly, it’s important that you have all of the correct documentation and important vehicle items as listed above
- Making sure the interior and exterior of your car is clean and tidy helps too
- Ensure there are no warning lights illuminated on the dashboard
- Consider getting a new MOT – having less than three months MOT remaining can reduce a vehicle’s value
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Determine Whether You Still Owe Money On Your Current Car
You may be upside down, or have negative equity, on your car loan. When you have negative equity, you owe more on your car than its worth. In these cases, you may still be able to trade in your car. But the outstanding balance on your old auto loan could be rolled into your new car loan, which can increase your monthly payment and potentially make you even more upside down.
How To Trade In A Car
If you decide that trading in your car is your best option, it is important to learn how to get the most money out of the transaction.
1. Know Your Cars ValueDealers always want to pay the least amount possible. For this reason, some attempt to low-ball the consumer with a price thats below the net value of the trade-in.
If you dont know what your car is worth, youre likely to accept any offer. Therefore, do your own research before stepping foot on the dealers lot. Go to Kelley Blue Book online and enter the make, model, year, mileage, and condition of your car to learn the trade-in value. Print a copy of this information and bring it to the dealership.
2. Fix Up the CarAny cosmetic damage to your car can lower its net value and cause a low trade-in value. You dont have to give your car an entirely new paint job, but it doesnt hurt to clean up the interior or exterior a bit before speaking with a dealership. Shampoo the carpets, drive the car through a car wash, purchase touch-up paint to conceal minor scratches, and repair dents. Simple repairs can add significant value to your car and increase the trade-in offer.
3. Shop AroundShopping around does more than get you the best interest rate on your auto loan or the lowest price on your new car it also helps you get the most for your trade-in. Visit multiple dealerships and request an estimate to learn the value of your trade-in. Keep copies of your quotes and use this information as a bargaining chip.
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Should I Trade In My Car
Trading in your car takes a lot less time than selling it yourself. You wont have to take it in for inspections, advertise it or make time to have prospective buyers test-drive it.
You also might be able to avoid paying sales tax on your new car, depending on where you live. Or you might only have to pay sales tax on the difference between your new cars value and your old ones.
Should I sell it to a private buyer instead?
If you want to get the most money for your vehicle, selling it to a private buyer might be a better choice compared to trading it in. Dealers tend to buy trade-in cars at wholesale value, which is less than the sticker price youd get from a private-party purchase. If youre not a skilled negotiator, your dealership could even pay you less than that wholesale price.
Do Some Competitive Research
Another important step to take before arriving at the dealer is to do your homework. Visit multiple websites and check the value of similar vehicles with the same mileage while monitoring ecommerce sites to follow your car models auction price. Print out that information, says Fix. The first offer you get from the dealer is going to be low. When you counter-offer with a higher price you can say, heres the paperwork to back that up, she says.
Choose Your Time Carefully
There may be certain times of the year when your particular vehicle is more desirable both to dealers and potential buyers.
For example, theres likely to be more interest in a convertible during the spring or summer months than in the middle of December.
Similarly, a 4×4 is more appealing in bad weather. When the snow is three inches thick on the road the benefits of a pick-up become more apparent.
Shop Around For Trade
Trade-in offers can vary, depending on what the dealer already has in inventory, the cars condition and how well the dealer feels the car will sell. You could prevent some of the back-and-forth negotiating at one dealer by getting a few trade-in quotes from different dealers. Get a quote from one, go to another and ask it to beat what the first offered. Be sure to get all offers in writing. Here are some places you could go:
A different brand dealership. Take your car to a dealer that does not sell your cars brand. An example would be taking your Ford to a Nissan dealer because a non-Ford dealer may offer you more. The reasons behind this are that there are fewer Fords with which to compete and If the car you are driving was a popular rental, lease or fleet model, they also transact at lower prices, says Matt DeLorenzo, managing editor for Kelley Blue Book. If you go to a dealer of the same brand, you could be competing against those depressed prices with your privately owned vehicle.
A used-car-only dealership. Places like CarMax advertise fast, free quotes on trade-ins, so stopping by may be a pretty painless way to get a written trade-in offer.
Online services. Some sites offer to buy your trade-in online. Whether you trade in your car for a new one or sell it using an online site, an offer from an online service might be useful. KBB Instant Cash Offer is one example of a site you could use.
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Trade In Isn’t What You Think
Trading in your car during the purchase of a new vehicle can initially seem like the best course of action, especially when looking for a no-nonsense way to get rid of your old motor quickly.
What many people fail to realise however is that they can often get a lot less than what their car is worth, and the trade in value they receive is far from fair. While putting your old car in against the cost of a new one is good for reducing the price, surely it would be more beneficial to get a better price for your old motor elsewhere, and then use that money as a down payment on a new car?
Luckily there is a way to sell your car that is just as simple than trading in your car. Webuyanycar.com!
With webuyanycar.com, you could easily beat the trade in value of your car by selling directly to us, and still benefit from the convenience and simplicity of a trade in.
After You Have Sold Your Car
After youve sold your car you need to inform the DVLA youre no longer the owner.
You and the person youre selling to, must sign and date the relevant part of the V5C and send it to the DVLA.
Dont forget to pay off any finance that is still left outstanding on your car, and to let your insurer know that youve sold the car.
For more tips on preparing your car for sale read Which?
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Online Car Buying Sites
There are lots of online car buying sites that will offer to take the work out of selling a car. You enter your cars details on the companys website such as age and mileage, receive a valuation, and then take it to a local depot to have it assessed.
However, Which? says Youre almost certain to get a better price selling the car, or even sending it straight to auction, yourself. In our undercover research, we found that five out of six of our mystery shoppers would have been better off selling to a dealer in one case, by over £2,000.
If you do choose to sell your car online be aware that usually the online valuation is subject to a physical inspection of your car. If the inspection reveals some faults, the final valuation figure might be lower. You also might have to pay an administration fee for the service.
Negotiate But Be Realistic
Negotiate with the dealer – if you feel comfortable to. Dealers will almost always set a low part-exchange price first, leaving room to offer you more. But you should still be realistic. The dealers will want the best deal out of the trade-in, too – and they’ll only offer what they feel the car is realistically worth. Just because you treasure your ten-year-old Fiesta, doesn’t mean others will.
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Don’t Be Afraid To Walk Away
You don’t have to accept a deal you aren’t happy with there will be plenty of other options. But you should only walk away if you’re confident in your car’s value – and that’s what you’re offered. Chances are you won’t get offered higher than the trade-in value, so be prepared to accept a realistic offer.
How To Choose A Car Dealer
Without any prior experience, choosing the right car dealer yourself can be a tricky business and there are many factors to consider before proceeding with a sale. With Motorway, you can get an online car valuation for free, all you need is your reg and mileage.
Our valuations are based on market data, plus the data we take from our dealer marketplace, so the figure you get is always up-to-date. Using this information can be a great place to start if you want to get a better idea of what your car is worth, and even if you do use our valuation tool, theres no obligation to proceed if you decide not to sell your car.
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Cancel Your Vehicle Tax And Get A Refund
Sellers and buyers can no longer transfer existing tax when a car is sold.
Instead youll need to tax the car yourself and the old owner can apply for a refund.
However, new tax is now backdated to the beginning of the month and refunds are from the start of the next.
This means if you sell and then buy a car early in the month, you will be paying tax twice.
If you apply for SORN before the end of the month you can avoid paying tax on your existing car.
However, youre liable for a fine if you then drive on the roads untaxed. This could make it tricky if a buyer wants to test drive your car.
When Is The Best Time To Trade
The longer you own your vehicle, the more your vehicle depreciates. As another model year passes by and your kilometres increase, the value of your used vehicle decreases as well. If you are currently making payments on your car, this could be a factor due to the fact that at a given point in time what you may still owe on the car exceeds what the car is worth in the marketplace.
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How Much Is My Car Worth Part Exchange
It’s never been easier to find out how much your car is worth ahead of part exchanging it for a new car. Our free car valuation means you can quickly get an accurate value for your car simply entering your car’s registration number.
Once you know what your current car is worth, it means you can get the best possible price from the dealer you want to part exchange your car with.
When Should You Consider Trading In Your Car
Regardless of your reasons for trading in your used car, there are ideal situations, or times, when you should consider it:
- When it is low on mileage. A high-mileage vehicle has a lower resale value.
- At the end of the year. Dealerships are usually scrambling to make room for next years stock, meaning you can trade in for a new car at a lower price.
- If you have positive equity. This allows you to deduct the amount from the price of the new vehicle.
- If you are spending too much money on repairs. If your mechanical bills are higher than your monthly loan repayments, its probably time to trade it in.
- If you are not desperate to trade in. This means you have more freedom to shop around for quotes and negotiate the best deal.
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When Is The Best Time To Trade In A Car
Many people believe that you should trade in or sell your car every 2-3 years. While getting a new car might seem exciting, is trading in your current car worth it?
There are several ways to determine if its worth making a change. Start by looking at your cars trade-in value, or the dollar amount you will receive from selling your car to a dealer when buying a new one. If its high enough to give you a low monthly payment, it may be worth considering.
Another factor to consider is current maintenance costs. Does your current car need some work that might cost you a small fortune? Looking into buying a new car that doesnt need costly repairs might be a better route to take. Create a budget to learn if these repairs will fit into your monthly expenses.
Every car is different, so its important to consider your unique situation. However, there are some basic calculations that can help you decide if trading in your car is the right decision.
Exchange And Dealers Choice
There are certain things that dealers will typically look out for when they are looking around for a good part exchange.
Such things as sought-after makes and models with added extras, low mileage and unusual or rare factory colours. If the car youre attempting to sell fits any of these criteria, then you probably hold a fairly strong hand and its a good idea to know this going in.
At the time of writing, dealers are also currently favouring SUVs over estate cars and other more traditional styles , but this may change over time,
Do some internet-based research on your old cars value and see what similar models are fetching on the market. Then take it to a few dealerships to get a valuation. Its a good idea to let them know that you are doing this.
Firstly, this will let them know that youre not only prepared but expecting to walk away from them following the valuation, but also if your car is something they like the look of, they wont want to lose it to a competitor and may even start haggling.
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Getting A Better Offer For Your Part Exchange
There are some simple things you can do to improve your chances in getting a higher valuation and offer at a car dealership.
For example, it is a good idea to get your car cleaned inside and out. Its a simple thing, but having the car clean and smelling fresh can often make a huge difference.
Assess the full condition of the car its tyres, body panels, and interior and see if there are quick wins that dont cost much to fix, but might make a big difference to your offer.
This might be anything from waxing the bodywork to buying a cheap scratch repair kit online. When you do these things, tread carefully as youll inevitably be looking to get any money you have paid out back into your bank account when the car sells, so dont spend too much!
Its also a good idea to replace any missing parts but only if its cost-effective. If your car has missing hub caps, for example, you could potentially add a bit of value to your old car by picking up some second-hand ones on websites like eBay or preloved.co.uk. Obviously, its a good idea to keep this cost as low as possible.
Its likely that a dealer will ask you what you want for your old car. This can be tricky, so you will need to prepare for it. From your internet-based research, you should already have a good idea of how much your old car should fetch.
This is more likely to put the dealer on the backfoot, and you may even find that they start to haggle with you.