How to Deal With a Dealership When Trading in a Car

Trading in your old car is common when buying a new car.

There's something about negotiating a car deal that makes some people squirm and tighten up with anxiety at the mere thought of it. Trading in your car as part of a new car purchase doesn't have to be a horrible ordeal if you're prepared and know what to expect. Dealers want to make money on every deal, but you can get the best deal available if you know your car's value and are prepared to make the dealer work for the trade-in.

Instructions

1. Research the marketplace. Used car values differ depending on numerous factors, such as mileage, age, make and model, but regardless of the particular car you need to know what the fair market price for your vehicle is. Unfortunately, there is no one right answer and you may have to take your car to different used car lots first to determine the market value in your area.

2. Keep the information to yourself. When you know you want to trade a car in, it's best to keep that information secret until you and the dealer negotiate a purchase price for the new vehicle. Once you know the purchase price, you can then negotiate a fair trade-in price based on your market research.

3. Bring information with you. The more you know about your own car, the better. You can use a service such as Carfax to find a detailed history about your car and any accidents or sales related to it as well as bring all repair records you have. This way you will know what is true about the car and what may add or decrease the car's value to the dealer.

4. Clean the car. A dirty car is less appealing than a clean car and gives the car curb appeal. If you're a smoker, try to get any smoke smell out of the vehicle by thoroughly vacuuming and shampooing the upholstery.

5. Negotiate the price. A negotiation can be complicated, but it's typically best to let the dealer name the initial price. Reject this price and respond by letting the dealer know what you believe the fair market value in the area is. You won't get the fair market value unless the car is in strong demand as the dealer has to make a profit on the car.

References

• Edmunds.com: Trading In Your Used Car; Philip Reed, April 30th, 2009
• MSN Autos: Trade It or Sell It: How to Get Rid of Your Old Car
• Bankrate: Favorite Tricks of the Car-Dealer Trade; Leslie Hunt, August 1st, 2006
• Bankrate: 8 Tips for Negotiating a Car Trade-In; Heather Larson, January 6, 2010
• Daily Finance: How to Negotiate a Price Like a Man...And Like It; Marc Acito, June 15th, 2010