How to Trade in a Car

If you’re considering buying a new vehicle, the odds are good that you’ve at least considered trading in your old car. Follow the steps in this article to do it properly.

Things You'll Need

• Value guide

Instructions

1. Determine the trade value of your car by looking at a value guide like NADA or the Kelly Blue Book. These books show you exactly how much your car is worth at a dealership, an auction, or if you were to sell it yourself.

2. Ask for an appraisal beforehand and note any problem areas the dealer may find. Sometimes the dealer may find a simple problem like a rear taillight not working that significantly lowers its value. By fixing it yourself, your value will automatically go up.

3. Clean out the car, give it a good washing and gather up all your maintenance papers together. If you’ve always had the oil changed or had a dealer work on it, bring along those papers. The better the car looks and functions, the better your trade will be.

4. Look for a dealer that doesn’t have your model in stock. A car lot that has multiple versions of your car will automatically give you a smaller amount.

5. Accept the best deal you can find. You should visit at least three dealerships or car lots for an appraisal before you make a decision. Base your decision not only on what they’ll give you for your trade, but how much you’ll pay in the end run for your new vehicle.

Tips & Warnings

• Don’t accept the first offer you get. The more places you visit and the more research you do, the better your chances at finding a great deal.

• Keep an eye out for specials from your local dealership. Many dealers offer special trade deals a few times a year where they’ll actually give you more money than your car is worth.

• Read the fine print carefully. There are some dealers who will offer you more for your trade only because they plan to charge you more on the car you’re buying.