How to Get the Most From Your Trade-In

December 1st, 2022 by

You may think it’s a losing proposition to trade in your old car, as selling it directly to a private buyer often can net more cash. However, the convenience of visiting a dealership with your old vehicle and departing with a new replacement is undeniable. Here are some tips to help you increase the value of your used vehicle should you decide to trade it in at our dealership right in Guthrie, Oklahoma.

Tips for Maximizing the Value of Your Trade-In

Consider these eight tips before negotiating the trade-in valuation of your car:

Assess Your Vehicle’s Worth

Evaluate trade-in rates before visiting your local dealership, so you can start negotiations with some knowledge of how much your vehicle is worth. Several websites can guide you. However, Kelley Blue Book and Edmunds are the most credible and popular. They offer two straightforward tools: one calculates the worth of your trade-in, while the other displays instant cash offerings by nearby dealerships specific to your model.

You’re in a better position to determine your trade-in amount after knowing the car’s value. Starting high and working your way down is simpler than starting low and trying to drive the price up.

Acknowledge the Dealer’s Perspective in the Negotiations

Nowadays, dealers experience profit margins on new-car sales slipping more frequently than they used to. Therefore, they’re constantly searching for additional revenue streams, and trade-ins continue to be profitable. When you reach out to a few dealers before making a purchase, ask them whether they can collaborate with you regarding your trade-in valuation.

A dealership may market itself as a “no-haggle” establishment, but that doesn’t imply they won’t bargain over the price of your old car. Consider your trade-in as an element of the buyer’s journey. When you shop, you may evaluate trade appraisals, which are unattainable if you don’t have any plans to buy a new car.

Get Your Vehicle in Prime Condition

Even if your car is mechanically perfect, dealerships know that scratches, dings, and rust holes repel buyers. They may offer you a lower price than it’s worth because the car will need some repairs.

You may have the maximum trade-in valuation when your car, truck, or SUV is in top condition. Clean and detail it before trying to sell it. Ensure your car has proper maintenance and appears well taken care of. By taking care of minor problems and appearance damages, your dealership’s evaluation may be hundreds of dollars more.

Better yet, go to a dealership that sells the same brand. For instance, get quotes from a Chevrolet dealer for your Chevrolet. They can take care of all those bothersome faults before they send the car to the front lines.

Get Several Quotes Before Settling

Prepare to request quotations from many dealers, as this gives you leverage in the negotiations. Assemble your car title, loan repayment paperwork, license, registration information, and all duplicate car keys before the negotiations. Each of these is necessary for the final trade-in.

Contact the online teams of dealerships to request estimates. Keep in mind that these projections can change until the dealer examines your vehicle in person. Schedule meetings with several dealerships to collect used-car valuations.

Provide Maintenance and Repair Documents

The pricing might vary significantly depending on how the vehicle was operated and maintained, so the more information a dealership has, the better. It’s more difficult for them to determine the actual state of your car when you can’t offer proper paperwork for services, repairs, and maintenance.

Establishing recent maintenance done to the car through paperwork and invoices is crucial. Car dealers value recent major repairs. This can be installing newer batteries for a hybrid or a timing belt. These boost the value while eliminating the need for additional work to make the vehicle more appealing. With proof, you may recover a portion of the investment as a higher trade-in price.

Conduct Separate Negotiations

This applies if you combine your new car’s procurement and your older car’s trade-in into a single transaction. A car dealership can strive to raise the price of your new vehicle to compensate for a higher trade-in valuation. Alternatively, the dealer can overcharge you for the new car while undervaluing your trade-in. Negotiate each of them independently to ensure you receive the best deal on your new car and the highest trade-in return, if not the determined amount.

Be Strategic With Your Timing

The season of the year may have a substantial effect on the trade-in value. Different seasons have a larger market for certain car models, which makes them highly valued. For instance, convertibles may sell at higher prices during the summer. Conversely, SUVs usually have higher asking prices throughout the winter.

Also, pay attention to current fuel costs. For instance, when the gas prices are high, dealers will have a much easier time selling a fuel economy trade-in.

Consider Taxes

Ensure you understand the local tax implications for trade-ins because state tax rules vary. Some states exempt new vehicle acquisition from taxes or tax the difference between the vehicle purchased and your trade-in price. Such payments can be significant when trading in a more recent vehicle.

Although Oklahoma requires a sales tax on all automobile transactions, this doesn’t apply to trade-ins. Rather, the trade-in credit is subtracted from the car’s taxable amount. States such as Illinois, however, have legislation explicitly taxing trade-ins.

Trade In Your Vehicle at Eskridge ChevroletToday

Aim to get the highest trade-in valuation to buy your desired new or used car at a lower price and monthly payment. Following the above tips will help you achieve that.

At Eskridge Chevrolet in Guthrie, Oklahoma, You’ll find the car you want at a suitable price. We welcome you to trade in your old vehicle for a new Chevrolet car, SUV, or truck. Or you can benefit from a great bargain on a dependable pre-owned model. Visit our dealership, or get in touch with our team today if you have any questions.

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