Learn How to Get the Best Price for Your Trade-In

Purchase your trade-in

Now, in your spotless vehicle, visit at least three dealerships to obtain written trade-in quotes. When it comes time to negotiate, this will give you more clout. You’ll use the highest figure as the foundation for negotiating once you’ve decided where you want to buy your new car.

 

TrueCar analyst Cari Crane recommends presenting maintenance records and a car history report to bolster your bargaining stance.

Separately, negotiate the trade-in price.

Dealers utilize a four-square sheet to balance the trade-in and new automobile values, as well as the down payment and financing requirements. They frequently combine these data to give a monthly payment figure. This allows them to conceal the value of the trade-in and raise the price of the new automobile.

To avoid this and get the greatest possible deal, keep the trade-in and buy talks separate and compare each pricing to online guidelines and cash offers.

Lopez recommends that once you and your salesman have agreed on a trade-in price, you get it in writing. Also, inquire whether the dealership would honor the trade-in price even if you purchase the new car from another dealer.

 

Remember to include in sales tax.

In most places, you only pay sales tax on the difference between your old car’s allowance and the purchase price of the new one. For example, if your trade-in car is worth $5,000 and you acquire a $20,000 car, you must pay sales tax on $5,000.

When trading in newer vehicles, the sums might be large. Some states have sales taxes as high as 10%. This greatly favors trading in a car over selling it yourself.

Examine the contract’s trade-in price.

Now that you’ve determined the value of your trade-in, you can proceed to purchase your new vehicle. When you’re finished negotiating and studying the contract, be sure you’re getting the agreed-upon price for your trade-in.

Do your homework and negotiate properly, and you’ll get your money’s worth — as well as a new car — out of the transaction.