The Basics
The truth of the matter is you will almost always get more money for your used car if you sell it yourself. For most people, though, it is often times easier and faster to trade in your vehicle when buying a new one.
However, new car dealers are not only shrewd sellers, they are also shrewd buyers, which is what you are doing when you trade-in a vehicle selling it to the dealership. And, though you will never get the full value of your used car from a dealership, with a little knowledge and shrewdness on your own part, you can maximize the price you get for your trade-in.
Negotiating the Deal
It can be guaranteed that by the time you’re ready to talk price on the car you’ve selected, the salesperson will have asked you if you’re planning to trade in your current vehicle. You should avoid answering this question until the negotiations on the new car are complete. If you tell the dealer you’re planning to trade in your old car, the dealer will want to lump the two transactions together, putting you at a disadvantage.
Never forget that there are two separate transactions taking place. The first one is the dealership selling you a new car. The second is you selling the dealership a used car. The dealership is the only one who wins by the two deals being combined into one transaction.
The best way to conduct the process is to negotiate the lowest possible price on the new vehicle first, and only then should the trade-in be mentioned. This prevents dealers from working the value of the used car into a more lucrative profit for the dealership by offsetting a higher offer on the trade-in with a higher price on the new car.
Although you will always get more money for your used car if you sell it yourself, if you invest a little time and effort into preparing yourself and your car before you step foot on the dealer’s lot, you can maximize the price you get for your trade-in.
-Tony French
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