Tips for Trading In
Your Car
Thinking of trading in your car? It’s a great way to save on
a new (or new-to-you) car purchase or avoid the hassle of selling your car
privately. Taking these steps before setting foot on the lot can help you get a
better deal on your car.
1. Assess your car.
Be realistic. How well have you maintained your car? What’s
the mileage? Are there repairs that need to be done? Are there dings, dents and
scratches outside, or stains inside? All of these factors will influence your
car’s trade-in value.
2. Do your research.
Once you have a good idea of your car’s condition, find out
what other cars in similar condition are selling for in your area.
3. Understand the
market.
Regardless of the numbers you discover during your research,
there are several variables that will affect the offer you receive:
·
The time of year (Are you selling a convertible
in wintertime? You may get a better deal if you wait until springtime.)
·
Current gas prices (A small, gas-efficient car
may fetch a better price than a big SUV when gas is expensive.)
·
The dealer’s current inventory (Do they have
similar cars sitting unsold on the lot?)
The typical dealer wants to make about 2 – 4% profit on a
resale transaction. They may also need to do repairs to get your car up to
snuff, so once you come up with the amount similar cars are retailing for, take
these two variables into account to determine a fair trade-in price.
A great place to start is Borcherding’s Trade-In
Estimator, powered by PureCars. Just enter details about your car and
you’ll get a free estimate of what you can expect to get for your car from a
dealer in about 30 seconds!
