How to Keep Trade-In Negotiations Separate From New Car Price Negotiations

Some new car dealers will "play with the numbers" when you are trying to trade in an old car on a new one. For instance, they may lower the price on the new car, but at the same time, give you less for your trade-in. You can keep these negotiations separate so that you can drive away with the best possible deal.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Kelley Blue Book

1. Keep trade-in negotiations separate from new-car price negotiations by getting a commitment from the dealer on the cost of the new car first. Many times, a car salesman will immediately ask whether you have a trade-in, even before you go on a test drive. Remain vague about this point, responding with "I'm not sure yet. It depends upon the price of the new car."
2. Leave your trade-in at home when you go to the dealer, and negotiate for a price on the new car. Many salespeople are trained to spot the car you drove to the lot, and immediately check the Kelley Blue Book so that they have a price in mind when you start to negotiate.
3. Research the value of your trade-in, including both the wholesale price (what the dealer will try to pay you) and the retail price (what you want to get). The Kelley Blue Book is the universal resource for this information, and by bringing a copy of this book, or a printed out page from the Kelley Blue Book website, you will be able to keep the negotiations separate (see Resources below).
4. Get the price of your new car in writing before you negotiate a separate deal for your trade-in vehicle. Ensure that it is signed by the sales manager.
5. Walk away from the deal if there is too much pressure to link the trade-in with the new car price. Remember, you are never obligated to a car dealer until you sign on the dotted line. If the deal sounds wrong, simply go home, and the dealer will probably call you back the same day with the right one.

Tips & Warnings

• You may want to ask about dealer incentives on trade-ins before you divulge the make and model of your current car. Some dealers may offer better trade-in allowances under special circumstances, such as brand loyalty.
• Never make a deal for a new car with a verbal promise and a handshake.