How to Get the Best Value on Your Car Trade-in

Keep up with your car while you own it to get the best trade-in value.

Trading your car in can eliminate a world of hassle. With a trade-in, you can forgo tire kickers and scam artists while you consolidate the process of upgrading your vehicle. As is often the case in life, you'll get what you give when you trade in your auto. Getting the best trade-in value for your car is a process that starts on your first day of ownership and doesn't end until you take it to the lot.

Things You'll Need

• Maintenance items (wax, tire polish, stain repellents, etc.)
• Kelley Blue Book or NADA Official Used Car Guide (available online)
• Touch-up pen

Instructions

1. 

   Smoking in your car can bring down its trade-in value.

   Maintain your car throughout its life. Change its oil and get tune-ups according to the manufacturer's recommended schedule. Take advantage of any manufacturer warranties when performing engine maintenance. Wax your auto regularly to protect it from harmful dirt and UV rays. Protect the interior with stain repellent sealers and durable floor mats. Avoid eating, drinking and especially smoking in your car.

2. Know the value of your vehicle. Consult the Kelley Blue Book or the National Automobile Dealers Association Official Used Car Guide, both of which are available online. Be honest with yourself; don't overestimate the value of your car, or you'll be in for a let-down. Take current economic factors into account. For instance, when gas prices are high, fuel-efficient autos fetch higher prices than gas guzzlers.

3. Select a reputable dealer. Ask among your friends about local dealerships. Check online reviews to see who offers the best trade-in values in your region. If you already have a rapport with a dealership, it might pay off to take your car there first.

4. 

   Clean every inch of your car to increase its curb appeal.

   Spruce your car up before taking it to the dealership. Wash and wax the car, polish and fill the tires and vacuum the interior. Repair any scratches with a touch-up pen and top off the engine fluids. Consider taking your car to a professional detailer or having a final tune-up; the money spent may outweigh the increased trade-in amount.

5. 

   Understand your car dealer's perspective, but don't be intimidated by him.

   Negotiate. Most dealers will give at least one bump in the trade-in price. Ask the dealer if his bid is his own or a wholesaler's. If it is his, ask him what the actual cash value is and stress that trade-in value is important to you. If it is a wholesaler's, ask him to call the wholesaler. If you feel the trade-in bid is unacceptable, the dealer may be able to negotiate with the wholesaler.

Tips & Warnings

• Avoid painting your car unless it is absolutely necessary. Otherwise, it can drastically reduce trade-in value.

• Remember, the trade-in value of the car has nothing to do with the current payoff amount.

• Understand the dealer's perspective. Numerous factors influence the trade-in value, from current market demand to the dealer's inventory.

References

• The Hartford Financial Services Group; Boost Your Car's Trade-in Value; 2011
• Enterprise; Used Car Trade-in Tips; 2010
• Bankrate; 8 Tips for Negotiating a Car Trade-in; Heather Larson; January 2010
• Edmunds; Trading in Your Used Car; Philip Reed; January 2002

Resources

• Bankrate; 4 Steps to Boost Car Trade-in Value; Margarette Burnette; July 2008
• AutoTrader; Shopping for Fuel Efficiency?...; David Boldt; March 2011