Before you go to a dealership, it is important that you know how much your car is worth. This information will help you get the best trade-in deal.
Selling your vehicle to someone else can be more convenient than selling it privately. The more you know about your Cars trade and how it works, the easier it will be for you to trade in. We will be discussing the trade-in process and the best ways to maximize your trade in.
What is the process of trading a car?
You are selling your car to a dealer as part of a transaction for buying or leasing another vehicle. Traditional dealerships won’t buy your car outright but will allow you to trade it in. However, they require that any equity from the trade-in be used towards your new vehicle. CarMax and other businesses offer to purchase vehicles directly from consumers. In this case, the transaction would not be considered a trade in but a sale.
Find out what your trade-in is worth
Dealers can use many different references to determine the value of your vehicle. Dealers can use the Black Book or Kelley Blue Book (KBB), as well as wholesale values. You can get an idea of the value of your trade-in by using an industry guide such as KBB. It is important to have the following information: Make, model, mileage, and condition. KBB estimates that 54% of trade in vehicles are considered “good condition.” The following industry guides can be used to help you appraise your vehicle. These guides are available online for free. Black Book is an industry guide, which dealers can access for a fee.
Find out how much you owe on your car
It’s easier to trade in a car if you have a clear title without any lien. Find out how much you owe if your trade-in is still outstanding. A loan could allow you to trade in your car. Ask your lender about the auto loan’s payoff. It’s worth more as a trade-in than the amount you owe.
Positive equity is a car that is worth more than you owe. You can use this equity to make a down payment for a new car or lower your monthly payments. If you owe $10,000 on an automobile that is worth $15,000, you will receive a $5,000 credit towards the purchase of your next car.
SHOP AROUND FOR TRADE-IN QOTES
Trade-in offers vary depending on the inventory of the dealer, the condition of the vehicle and whether the dealer believes the car will sell. To avoid any back-and forth negotiations at one dealer, get several trade-in quotes from other dealers. Ask for a quote from one dealer, then go to the next and compare it with the first.
GATHER DOCUMENTS
These documents are required to officially trade in your car.
Car title. Bring the title if you are the owner of the car. This document proves you legally own the vehicle and allows you to transfer ownership. Don’t worry if you lose the title. Dealerships will usually have a form you can fill out to request a replacement for your lost title. You will still need proof of ownership. This can be done with your car registration.
Car registration. The registration can serve as proof that you own the vehicle, regardless of whether it was paid off or not.
Information about your loan. You should bring information about your loan, such as who you are paying, your account number, and how much you owe.
Maintainance records. These records can be used to prove you have taken good care of your car and that the vehicle is worth more if it is in prime working order.