If you are thinking about going to a dealership to buy your next car, you may be able to reduce the price of that next car by trading in your current vehicle. However, the amount that you get for your trade depends on a variety of factors such as market conditions and the condition of your vehicle. Is there anything that you can do to get the dealer to increase its offer for your car or truck?
Negotiate the Trade and the Purchase Separately
Car dealerships like to tie the value of your trade to the final purchase price of the vehicle that you want to buy. This makes it easier for them to craft the most profitable deal while using smoke and mirrors to make you think that you are getting exactly what you want.
Remember, you want to negotiate the highest price for your trade and the lowest price for the car as opposed to the monthly payment. By treating the purchase of a new vehicle and your trade as separate transactions, you give yourself more room to negotiate and a better chance of getting better value for your dollar.
Know the Value of Your Vehicle Ahead of Time
When you trade in your Lexus, the dealer doesn’t care how much you owe on your loan. Instead, the dealer only cares about how much the vehicle is actually worth and how much it can sell the vehicle for. Therefore, it is in your best interest to look at the Black Book value of your car before you start shopping. While you may not get exactly what it is worth, knowing the value ahead of time lets you know whether a dealer’s offer is fair and if there is any room to negotiate a higher price for the trade.
Clean Your Vehicle Before You Bring It to the Dealership
A clean car is often perceived to be a vehicle that has been properly cared for by its owner. The less reconditioning work that a dealer has to do, the less money it has to put into the vehicle before it is sold. This means that the dealer has more money to offer you for your trade. Depending on how good you are at cleaning or how much time you want to devote to a full detail, it may be a good idea to have a professional clean your car for you.
Trading in your current vehicle may be an easy and convenient way to reduce the cost of your next purchase. While dealers will take almost any car that comes their way, you can’t get the best deal unless you know what your car is worth and are willing to negotiate the trade separately from the purchase itself.