How to Trade in an Old Car
When the time comes to buy a new car, what are you going to do with your existing vehicle? Trading in an old car to help get a new one is often preferred, as it saves the time of trying to sell it yourself. It can reduce or even eliminate a down-payment requirement from the dealer, especially when there are credit issues.
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Instructions
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Keep a realistic attitude when it comes to trading in your old car at an auto dealer. If your vehicle is rusted out and barely operable, it is unlikely you will be able to trade it in. You may need to sell your car in your local newspaper, on websites such as Craigslist (see Resources section), or even sell it to a junkyard for a few hundred dollars.
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Research the trade-in and retail value of your vehicle using NADA (see Resources section) before visiting a car dealer. Write these numbers down or commit them to memory. This helps ensure you get a fair dealer when trading in an old car.
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Visit the used or new car dealer of your choice, and select the car you want to buy. Bring the old car you want to trade, as well as its title. If someone else is on the title, you likely will also need that person on-site when making the trade-in deal.
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Apply for financing with the salesman who approaches you at the dealer lot, providing personal information such as your full name, address, birth date, Social Security number, and employer. During this process mention you want to trade in your old car toward the price of the new or used car you want to buy. At this point, a manager will likely be called over to inspect the vehicle as well as the title.
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Accept the trade-in offer made by the manager or other representative, if you feel it is fair and in accordance with the research you did on NADA. If you do not feel it is fair, ask for a higher value. You may be declined, the new offer may be accepted, or you may receive a counteroffer with a slightly better amount than originally offered. If you are not comfortable with the deals being offered, do not hesitate to walk away and go to another dealer.
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Complete your paperwork for the new or used vehicle you are getting to finalize that deal. You will be expected to sign over the title for your old car before being allowed to leave the lot with your new or used vehicle purchase.
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Tips & Warnings
Remember that you can get more money in most cases by selling your old car rather than trading it in. If time is not an issue and you are willing to deal with potential buyers, think about selling the car yourself and using the proceeds for a down payment on your new or used vehicle purchase.
Do not feel forced into accepting any trade-in offer for your old car. Often the act or promise of walking away from a pending new or used car purchase may get you what you want for your car---if the request is reasonable.
