Advice on Trading in a New Car
The value of the vehicle you want to trade in along with your expectations of its value will make or break your next car deal. If you haven't properly researched your car's value or prepared it for appraisal, you can find yourself disappointed by your dealership's offer. Learn about trade-in tips you should consider and how to get the maximum value for your trade-in.
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Time Frame
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If you've been pondering a vehicle purchase and using your current car as a trade, you will obtain a better value for your car if the odometer is still under 100,000 miles. Because dealers are subjected to state warranty and lemon laws, vehicles under 100,000 miles are a safer bet for resale. Vehicles with high mileage are often sold at auction to other dealers. In addition, vehicles with over 100,000 miles are harder to sell because of lack of warranty, and are harder to finance. Many aftermarket warranty companies do not offer coverage for vehicles over 100,000 miles. If you're thinking about trading, don't wait; your vehicle is worth more at this moment than it will be next month.
Research
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Check Internet-based appraisal values before you have your trade appraised so your expectations are reasonable. Most dealers don't use Kelley Blue Book to find the value of your car. To find an accurate value, use the three main appraisal sites to find your trade value, being careful not look at retail or private sale value. Also, some consumers may believe the dealer will resell their vehicle for retail price, which is thousands over trade-in. Chances are, the dealer will not get the vehicle's asking price and will have to discount the car to sell it. Don't use the retail value to affect your expectations. Go to the following websites to view your vehicle's trade-in value: KBB.com, Edmunds.com and NADAGuides.com. All websites will show you a different value. Use the median number for an accurate expectation.
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Repairs
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If you have four tires that need replacement, the dealer will deduct his tire cost from your appraisal value. Again, dealers are subjected to state laws, which include inspecting the vehicle according to state requirements before any sale. Any repairs or maintenance items that need repair are deducted from your appraisal value. Consider using your insurance company to correct any vehicle body damage before you trade the car. Otherwise, the dealer will likely have to take the car to a body shop to prepare it for resale. However, before making the decision to repair on your own, have your car appraised, as the dealer's cost to repair body damage may be cheaper than your own. You'll still save money even though the cost was deducted from your value.
Appraisals
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Before bringing your vehicle in for its appraisal, clean it thoroughly inside and out. Even though you are going to a dealership to trade it, you are still offering your vehicle for sale. You should clean the car to make it look as attractive as possible. Surprisingly, some people do not clean their car before an appraisal, which makes the car look undesirable. The person who appraises your vehicle will look at stains, dirt and paint to determine how much cleaning the car needs before resale. Your vehicle will look even more like a gem if you clean it in the middle of winter, when most people drive around in dirty cars because of unfavorable washing weather.
Paperwork
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Have your paperwork ready for the trade. You'll need your title to sign the car over to the dealership, so make sure you know where it is. Otherwise, order it from your state's motor vehicle office. Not all sates offer an instant title, and you may find yourself waiting up to a month before you have it in your hands. If there is a lien listed on your title, which signifies you owe money, but you have paid off the bank, you must provide an original lien release to the dealership. The original lien release is your official bank letter stating the loan has been satisfied; it is printed on the bank's letterhead and signed by a bank representative. Call your bank to get another release if you are unable to find yours; a copy is not acceptable.
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