At some point, every vehicle has delivered its intended purpose, no matter how dear it is to a family or owner. When that time comes, it’s essential to consider your options in order to figure out how to get the best price for your trade-in, whether it be trading, selling, or mothballing the car for a future family owner. If you’re considering getting rid of the vehicle, you have several avenues to pursue, but there are several issues to consider before moving forward.
Trading in a vehicle is a great way to make your next purchase less financially painful. The dealer can take your car in trade and immediately apply the value to your next buy, but there are several things to keep in mind as you eye your transaction costs. Used vehicles are becoming more in demand as new cars have climbed in price, so it’s essential to find the most value-forward offer possible when you’re considering how to get the best price for your trade-in.
You have a few options when getting rid of your car for a new model, so we’re here to help guide you through your next steps. Dealers want to focus your attention on the top-line numbers, but you’ll want to make sure you have your ducks in a row to ensure the best price on your trade-in. Doing your research is important, but there are plenty of other steps you can take to ensure you’re getting the best value for your trade-in.
We’ve lined up the most important factors for you to consider when trading in a vehicle, from condition to cleanliness, and the top considerations might surprise you. Dealers and other retailers want to get the highest return on their dollar as possible, which means you’re up against an algorithm and a few people with a vested interest in extracting the most money from you as they can out of the gate.
Research and Homework
Yeah, none of us want to spend time doing research or end up feeling like we’ve wasted resources searching for the perfect price, but the important thing to remember is that you’re looking for values to justify your payout. The more ammunition you have to prove that the price you’re asking is not only legitimate but justified, the better your sales price is going to be. Take a look at the most popular sales listing sites (our classifieds are a great place to start) and get a feel for the number that others are selling similar vehicles at, and pay attention to the the responses they’re getting for those listings. You may feel that your one-of-one C6 Corvette is the cream of the crop, but what is the market supporting?
A sense of context will help you get your car out the door for a reasonable price that won’t make you feel like you’ve been had. Spending time ahead of time doing the research can also help you understand the pricing trends of the greater market and may open the door to opportunities outside of your home market that you didn’t realize were available.
Take Care of Your Vehicle
It doesn’t matter if you have the most desirable used vehicle in the world or if it’s the rarest configuration ever seen. If you haven’t taken care of your car, nobody’s going to pay top dollar for it, especially a dealer with overhead and other concerns. If you think you’ll need to trade in a vehicle, make sure you’ve kept up with maintenance and upkeep to prevent surprises when inspection time comes.
The number one thing you can do on this front is to keep up with routine maintenance. That means oil changes, tire rotations, and any other scheduled service your car’s parent company recommends. Well-documented maintenance records will help you earn top-dollar for your trade and can also help ensure a better price if you decide to sell private-party.
Unfortunately, you might run across mechanical issues during the inspection process. You have a couple of options, and your choice could dictate the selling price of your car. The most responsible and honest path is to fix the known issues before listing your vehicle for sale. Fixing a problem and providing documentation for the repairs is one of the best ways to get the most from your trade-in vehicle.
Clean It Up
The old tale that a clean car draws more money is still true, regardless of what you read online. Taking a dirty car to the dealer won’t necessarily net you less money, but having a clean car will give you a much better chance of getting a better price for your trade. Wash the exterior, and make sure that you’re aware of any issues with the paint or overall finish of the vehicle. The dealer might not take a magnifying glass to your paint job, but it’s a good idea to understand existing problems before you try to trade in the vehicle.
Negotiate, Negotiate, Negotiate
Another of the best ways to get a good price for your trade-in is to negotiate its price separately from the purchase price of your next vehicle. Dealers often look to combine the two transactions because it makes it easier to include charges and costs that might not otherwise be completely apparent. That’s not to say that every dealer is looking to rip you off, but it means that negotiating the trade-in and new sales costs separately is the best idea.
At the same time, it’s a good idea to try to time your trade-in to maximize its value. SUVs and pickup trucks are in high demand during winter months and when all- or four-wheel drive are needed, while coupes and convertibles draw top dollar when the sun is out in summer. If possible, try to time your transaction to get the most for your dollar.
Frequently Asked Questions
Which used-car retailer pays the most?
There are so many factors that dictate used car values that it’s nearly impossible to name a single buyer to get the best price. That said, some platforms offer better prices for specific vehicle types, such as collector cars, trucks, German vehicles, or popular models from the 1990s. Car auction sites like Bring a Trailer, Cars and Bids or even Ebay could be desirable outlets. This is one of those areas where it pays to do your research.
Is selling private-party a better way to get more money?
In general, yes. Selling the vehicle yourself to another individual will often yield the best price, but there are several other factors to consider. First, you might need to exchange large amounts of cash with another person, which can sometimes feel a little sketchy. You’ll also be responsible for all paperwork and accounting surrounding the transaction, a sometimes annoying process, and at the end of the day, it might be easier to sell to a dealer – just be prepared to pay for the convenience.
What is the best way to deal with a used car?
The best thing to do is to keep the car for as long as you can afford or stand to keep it on the road. You’ll hear plenty of advice telling you to keep a car and repair it indefinitely, but we live in the real world, where comfort, technology, and safety features matter, so it’s hard to stick to that mantra without some caveats. If your current car feels unsafe or isn’t meeting your needs, it might be time to consider an upgrade, even if it’s a used car.
Can I trade in a car that isn’t paid off?
Yes, you can absolutely trade in a car that isn’t paid off, but you’ll be responsible for repaying the difference between the value of your car at trade-in and the amount you owe on the loan. For many newer vehicles, this isn’t a problem, as they hold value quite well, and you might at least break even. However, some vehicles rapidly lose value and are nowhere near as pricey when trading in.