How Do I Know If A Dealer Trade-In Value Is Fair?



How Do I Know If A Dealer Trade-In Value Is Fair?

When you are planning to buy a new car, one big question many people have is how to get rid of their old car. You have two options: sell your car or opt to trade it in at the dealership, the latter being the easiest one. However, many people who go the trade-in route often feel they have not received fair value for their old car. We have provided some helpful information about how to know if a dealer trade-in value is fair.

Do Your Research

If you want to know the trade-in value of your car, head to the web. All you have to do is use keywords like “used car prices” and you will get several sites where you can see different used car models available for sale. KelleyBlueBook.com is one of the most reliable websites for finding used car values. Know that you could multiple values for the car you have. This might be confusing and you would want to believe the highest sale price of the car is the right trade-in price for you. Unfortunately, it might not be true for you as the value of the car depends largely on factors like its condition and the type of transaction.

There are several types of transactions including private sale, retail, loan value, and clean trade in. When you are selling your old car to the car dealership, you need to know the correct trade-in value of the car.

Know the Realistic Condition of Your Car

The exterior of your car is only part of its overall condition. A dealer who is offering a trade-in will also look at different aspects like service the history of the car, condition of the engine and electrical system, tires, paint and more. An honest evaluation of your car will ensure you get a good trade-in price. Generally, a car dealer expects to make a decent profit from the sale of your old car. Like any other business person, the car dealer would want to offer the lowest possible value on the trade in. However, if the dealer thinks the old car model is in great demand and your car is in good condition, the dealer might offer a trade-in price higher or equal to what you saw on the Internet.

How to Ensure You Get A Fair Trade-In Value for Your Car

To get the best in both deals, you need to keep both transactions as separate. This will prevent the car dealer from leveraging one end of the deal and lowball you on another end of the deal. The right thing to do is first find out the best price of the new car and then tell the dealer that you have a trade-in. To ensure that you get the best trade-in value, give the car dealer all records of service and maintenance and get your car cleaned up before the trade-in evaluation.

You need to understand that there is no perfect mechanism or rules for how to determine a fair trade-in price. Every car dealer has its own method of evaluating cars. However, by following the tips given above, you can protect your own interests in trade-in transactions.


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