Most new car buyers have a used car that needs to be disposed of. You usually have two choices – you can trade with a dealer or sell to a private group yourself. If you want to maximize savings, I suggest selling it to private groups. Yes, there will be some trouble, but the extra savings are usually worth it.
Dealers make more money from used car trading than from selling new cars. Just look at the difference between retail and wholesale prices in any popular pricing guide and you’ll see a big difference. Consumers are trapped by the price “bargaining” of new cars, and they are unprepared by the price of old for new cars. Surprisingly, many people thought about the deal afterwards, leaving thousands of dollars on the table.
If you’re thinking about trade in, you need to separate the deal from buying a new car. If you combine them, the dealer has a lot of room to deal with the numbers. They may give you a discount when you trade in, but kill you on a new car, and vice versa. Bottom line: you’ll end up with a bad deal.
If you keep trading
Despite my warning, if you still insist on replacing your old car at the dealer, you should complete the following steps to get the best used car trading.
1. Understand the approximate value
When trying to calculate the discount value of their used car trading, most people just look up the price on kBb or clearbook and think it’s a foregone deal. But it’s a big mistake. These pricing guidelines can vary by thousands of dollars depending on the condition, location and time of year of your car. For example, 4-wheel drive vehicles are in great demand in winter. Demand for convertible cars is higher in sunny areas. If you look at three different pricing guides, you get three different prices.
2. Cleaning and washing
Make sure you don’t change too much before you trade in. Be sure to clean the car thoroughly inside and outside. First impressions really matter. Centralize all maintenance records in one place. If necessary, change the oil and filter. Replace the broken lamp. Repair everything you can. If you have minor surface damage, such as paint scratches or debris, it’s best to try to repair them. Don’t repaint your car – most buyers will think it’s in an accident.
3. Get quotation from at least 3 dealers
This step is where you can maximize your savings. To get real wholesale value for your car, you need to get multiple discounts. Suppose you have a new car (more than 5 years old) with less than 75000 miles, you need at least 3 dealers to offer discounts.
But not all dealers. Be sure to go to the dealer who sells the same nameplate as your car. So if you want to sell Toyota, please contact a Toyota dealer. This is important because they usually give you a better price than the unrelated dealers. That’s because people tend to buy famous brands. People who go to a Toyota dealership are more likely to buy a second-hand Toyota than another brand. Dealers can give you a better price because they will sell your car in their used car yard instead of wholesale it to another dealer.
4. Compare the price when buying a new car
Now that you’ve got a few opportunities, you have a good idea of how much your discount deal is really worth. You can make the most of this information when you buy a new car.
Most dealers will ask if you want to trade in. They hope you’re a fool and don’t realize they’re making a lot of money from your used car trading. In the process of buying a car, you can say that you trade the old for the new, but you want to talk about the price of the new car first. After doing so, you can see if they can exceed the price you get from other dealers.