How To Tell If A Dealer Trade-In Value Is Fair

How To Tell If A Dealer Trade-In Value Is Fair

The auto world has evolved tremendously over the past few decades. What was unheard of just a decade ago is now commonplace and probably being replaced by another new breakthrough technology, idea or convenience that beats all else. So, in such a competitive world, there are a few rules of thumb you can follow to get yourself at least a reasonably close estimate to what your car’s true value is.

In any case, you must know that whenever a dealer buys your car, they will offer you a price that’s lower than if you were to sell your car independently. This is because the dealer will have to have the car cleaned and prepped for sale and is taking a risk keeping the car on the lot until it is sold, which may not be immediate, depending on what kind of make and model it is. On the other hand, a trade-in entails little or no paperwork for you and it also saves you the hassle of searching for a good buyer and negotiating a good price.

Step 1:

So to know whether you’ve got yourself a fair trade-in value, you must do your research before hitting the dealerships. Today, most consumers are aware of the various ways in which dealers make profits for themselves, that’s why it’s a great idea to check at least six to eight different online valuation tools to get a rough estimate of your car’s worth.

You can also read up on in-depth auto-magazines that offer reviews, insights and research on factors that affect car value such as depreciation, make of the car, the age, etc. Such material is regularly updated and you can get current values for almost any car make and model, whenever you need it.

For example, a Ford car depreciates anywhere from 10-20 percent during the first five years of owning it and after this, it could depreciate another 10 percent each year depending on its usage and condition.

Step 2:

Shop around. Check out various dealerships in your area. Narrow your search down by shortlisting the dealerships that offer the best price and also have the new car you’re looking to buy in stock. Sometimes asking friends and colleagues about their experience and the trade-in price they got can also help you negotiate with a dealer.

Step 3:

Make a list of the items you’ve added on to your car such as protective seat covers, an upgraded audio system, safety and security features, etc.. These can all add to your trade-in value and you can use this to negotiate a good price for your car.

Furthermore, when trading in your car for a new one, you can always leverage your good credit score, cash payment option and desirability of your existing car to negotiate with the dealer. So, by the time you arrive at the dealership, you ought to be an expert in these areas, which is the best way to ensure that you get a fair price.