Estimating Trade-In Value

Buying your car can be a difficult process if you don’t understand the procedures that dealers use to ensure that everyone benefits from the transaction. We all need to replace our cars at some point, and many dealers can make that process much easier for you. A big part of buying a new car is selling or trading your old one. Dealers let you trade in your old car to make car buying easier, but you need to know the value of your car. If you’re looking to trade-in your old car when you buy a new one, here are tips for estimating trade-in value.

Do Your Research

Before you get anywhere near a dealership, do the research on your car. Kelly Blue Book and Carfax.com are great places to look for car values. Find several different sources of information regarding the value of your car. Keep in mind that you must factor in any issues with the car and you are likely to not get what the car is worth. Many people feel that they should get the full value of the car in a trade-in, but this is rarely the case. Dealers have to make repairs and refurbish the car, and be able to profit from its sale. So, you will not get the full value in a trade. However, it will alleviate some issues.

Trade-ins let you dispose of your old car immediately, which is a major benefit. You won’t have to insure and maintain multiple cars while you look for a buyer, which can save you a lot of money. Also, trading in your car can reduce the price of your new one, which is always a benefit.

Get an Appraisal

Before you agree to trade-in your car, get it appraised by several different sources as well. This will get you the best information about what you can expect for your car. Car dealers and auto mechanics can review and appraise your vehicle taking into account any possible issues that could increase the cost of the car. While having it appraised, avoid the urge to have any minor issues fixed. Although it may appear to be in better condition, these repairs probably won’t raise the value of your car.

Review the Car Yourself

Once you have an idea of what your car is worth in the eyes of others, look it over and determine what you are willing to accept for it. Start by averaging the value of the offers that you were given. Then, do a review of the car yourself. Take the price of the car, and look for issues that you would want to be fixed before you bought the car. Mark off what that repair would be worth to have a mechanic fix. The result is what you would likely accept for the car as a trade-in. Keep in mind that dealers will probably offer less than this, but it gives you a good frame of reference for offers and negotiations.

Trading in your car can be hard if you don’t know what your car is worth. Never go into a dealership without any idea of your car’s value. If you think you’re going to trade-in your car, here’s a way to determine trade-in value.