If you want to upgrade to a bigger or better car and dispose of your old one, trading in might be your best option. When trading in cars, usually a dealer buys your old car from you, and you purchase a car from them. Trading in cars is more like a two-way highway.
However, it’s not a process that you should just rush into. You want to get value for your car and benefit from the deal as much as you can. Every dollar is important in this transaction. If you’re getting financing for your vehicle, the higher you get from your old car, the less you’ll borrow. You also have to consider the benefits and downsides of trading in your vehicle in comparison to privately selling your car.
Taking your time to do your due diligence will ensure the transaction pays off. Here are a few tips to consider before going into the deal.
- Know the Value of Your Car
Your car’s value begins to depreciate the moment you drive it off the showroom. Some unscrupulous car dealers will try to exploit ignorant or unknowing car owners to pay the lowest amount possible. They offer car owners prices that are below their car’s market value.
If you don’t know your car’s market value, you’re likely to accept the offer and get swindled. Knowing your car’s value will help you get the best possible offer from the dealer. Therefore, you need to do your research before stepping into that dealer’s office.
The best thing is that various online resources can help you know your car’s current market value. Such resources determine the value using factors such as make, model, age, condition, and mileage to give a fair estimate of the car’s value. You can print this information and present it to your dealer.
- Solicit for Offers
You should get multiple offers from several dealers. This will help you get the best possible offer. Before you do this, make sure you have the necessary documents and any other items ready. These include the car’s logbook, registration, driver’s license, and all the car keys.
You can email the dealers of your choice and explain to them you’d like to trade-in your vehicle. Some will give you an offer based on the description of your car. Others, however, will only give a quote once they’ve inspected the car physically.
You can get estimates from the dealers you desire or the dealerships dealing with your car’s make. For example, if you own a Hyundai, a local Hyundai dealership would be willing to buy the car back from you. You can visit https://www.visionhyundaiwebster.com/ for top dollar trade-ins.
- Negotiate the Offer
Once you have a few quotes, you can settle for the best one or negotiate for a better appraisal. If you’ve already selected an offer, you can have the deal done in roughly half an hour if you have all your documents ready. Ensure that the price you’re offering is similar or close enough to the estimate you received online.
If two dealerships offer you the same quote, it’s advised that you go for the one you intend to buy your car from. This gives you an advantage as you’re giving the dealership business in the trade-in and purchase.
Also, note that the car dealer gives you a low quote giving room for negotiation in most cases. You can mention that you intend to buy your upgrade from them to get a better rate.
- Close the Deal
Once you’re satisfied with the price being offered, it’s now time to close the deal. If you own your car outright, closing the deal is uncomplicated. The trade-in value can simply be deducted from the new car’s value.
If you’re selling the car and not buying another one in exchange, you’ll receive a check for the car’s value. You can opt to use the check as a down payment for another car in the same dealership or elsewhere.
If you’re downgrading and the new car is worth less than your trade-in car, you’ll also get the balance in check.
When trading in to upgrade, it is advised that you try your best to pay the balance in cash. Unless the balance is a small amount, avoid rolling it over to a new car loan. If you currently don’t have the equity, consider waiting until you have the amount to trade it in.
Trading in your car means selling your car in exchange for another car. When selling to upgrade, you need to take a few steps to ensure you benefit from the deal. Ensure you get an accurate market valuation for your car. Solicit for several appraisals from different dealers. If you can get a better deal, negotiate the offers, and close the deal with the most suitable dealer.