How to Negotiate a Car Trade-In Value
When you trade your old car for a new one, the dealer will attempt to make additional profit by offering you the wholesale value, not the actual market value. By knowing how much room you have to work with, and by ensuring that both you and the car dealer make a profit on the deal, you can successfully negotiate the trade.
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Instructions
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Negotiate the trade-in value on your car by finding out its blue book price on the open market. Check the Kelley Blue Book, which provides a yearly listings of the value of every production car on the market, and estimates its dollar value based upon condition and mileage. The current edition of the Kelley Blue Book can be found in most bookstores or auto parts retail outlets.
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Determine the difference in the wholesale and retail value of your car in order to negotiate successfully with the dealer. The Kelley Blue Book and other resources will list the two different prices, which will give you an informed bargaining position when it comes to the price you can get for your car.
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Clean your car before you negotiate its trade-in value. Have both the interior and exterior detailed, and take out all personal items. You may want to have any minor dents and scratches fixed as well, since the car dealer will deduct more from the total value of the car for these defects than if you simply had them fixed in a body shop.
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Research your options when you negotiate for a fair price on your trade-in vehicle, and walk away if you feel that you're not getting the deal you deserve. You will usually be able to get a higher amount for your trade-in by selling it to a private party, by negotiating separately with another used car dealer or by purchasing a new car from the same manufacturer that made your vehicle.
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Use online resources, such as the official website for the Kelley Blue Book, to determine the value of your car (see Resources below). From the Kelley Blue book site, you can also find out about the value of options, such as audio systems, air-conditioning and any other upgrades you have made to your trade-in vehicle.
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Tips & Warnings
Most experts still recommend that you sell your old car first in a private sale and not trade your old car in to the dealer.
