How Does Trading in a Car Work?

If you’re shopping for a new car, you’ve probably already thought about trading in your old one . Not a bad option, since it could help you cut down costs. Hint: The money you receive for your old car can be used to help purchase your new one.

How does trading in a car work?

Here’s what to expect:

Start with the paperwork

Bring documentation proving that you’ve stayed on top of your car’s routine maintenance (think: oil changes) to help boost your offer.And if your car is paid off, don’t forget to have your title with you at the dealership.PS: Remember not to leave it in the car. Because theft.  

Clean it up.

Especially if your car has technology like a built-in navigation system. Unpair your phone and clear your address. Safety first.And this isn’t a rule, but a car wash or detail before your visit won’t hurt your offer.

Know your car’s worth.

If you don’t know your car’s value, it’s hard to know if the dealership is giving you a good trade-in offer. Before you step into a dealership, do your research with an online estimator tool like Kelley Blue Book.

I’m ready. What happens at the dealership?

Let the salesperson know you’re interested in trading in your car. They’ll have someone take care of the appraisal (which usually includes a test drive), then make an offer. Take notes. Because experts say it’s best to keep your trade-in offer, new car price, and financing separate. Sometimes combining all the numbers can make the trade-in offer seem a little better than it actually is. 

Any alternatives to trading in my car?

You can also sell your car to another person instead of a dealership.You would need to list your car and find prospective buyers, but it could mean more money for you to put toward your new car vs trading it in. Because the dealership plans on selling your car for a profit. And if they give you the full value, they might not be able to make a profit when they sell your old car.

theSkimm

Trading in your car is a great way to cut costs on your next vehicle. But, while you’ll drive away in a new car, you may not get your old car’s full value.Because the dealership has to make a profit, too.