Getting the Best Price For Your Trade-In

If you have a trade-in, start the negotiations here. Most people buy a new car because they are tired of their current vehicle. The old car is either in the shop too often, it's on the verge of collapse, or it's just time for something new. But when it is time to buy a new car, people usually give up their old wheels without a fight.

Don't let it go for free. Know the value of your trade. Edmunds'® has information about Used Vehicles both on their Internet site and in their Used Car book, which provide both market and trade-in values for used cars, and that's the place to start. Be sure to add or deduct cost for mileage and options. Next, compare the value of your car with the value of similar cars advertised in newspapers or used car magazines. After arriving at an acceptable value for your car, be sure to adjust for the condition of your vehicle. Any damage such as rust, door dings, dents or scrapes should result in a deduction.

Then try to sell it yourself. You will never get the fair market value of your car by trading it in at a dealership.

If you cannot sell your current car yourself, or you simply don't want the hassle of negotiating with the public, then a trade is an option. Just keep in mind that you will get hundreds, even thousands less by trading your car in than you would by selling it yourself on the open market.

Now that you're sure you want to trade in your old beater, make sure to get the car detailed before letting a dealer appraise it. There's nothing more likely to ruin your chances at a great trade-in price than showing up in an unwashed car. The dealer, like any other potential car buyer, needs to feel that you have cared for the car during your years of ownership. Here's a list of things to do in preparation for a trade or sale:

Wash and wax the exterior.

Thoroughly clean the interior fabrics, vacuum the carpet, and remove any debris such as food wrappers, coins, aluminum cans, etc.

Change the oil and oil filter. The dealer will check the dipstick to make sure the car's engine has been properly cared for.

If any repair work needs to be done, get an estimate on the cost. The value of your car is lessened with every flaw, so know exactly how much repairs will cost. This will help you arrive at a fair value for your trade.

After everything has been accounted for, and you know exactly what your car is worth, expect to get a few hundred dollars less at the dealership.

Once the price of your trade is agreed upon, have the salesperson put the trade-in quote in writing. And ask for the actual cash value of the car to be put in writing as well. This will help you get an idea of what the dealership plans to make on the car and is another tool in the negotiating process.

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