Don’t Under-Value a Used Trade-In

Ella Stephen August 14, 2016 0

When it is time to upgrade to a newer model of vehicle, you will probably use your current vehicle for a trade-in. If you are shopping for a quality new Toyota near Tappan, NY, the first question to ask is how much a used car is worth. You want to make sure you get the most value from your trade-in to reduce the purchase price on your next model.Don’t Under-Value a Used Trade-In

Understand Profit

Your used car may not be worth as much as a brand new vehicle, but it has high value for a dealer. While the selling price is lower, the profit margin is usually higher than with a new vehicle. That is why dealers love trade-ins, and it is one reason you should know the value of your car, so that the profit gained is as much yours as the dealer’s.

If you are trading in a car that you are still financing, you want to make sure you get at least enough to pay off the current loan. Otherwise, you will probably be upside-down on your new loan right from the start. While this may not seem like such a big deal now as long as you can afford the payments, it will have an impact the next time you go to trade in your car for a new one.

Enhance Your Car’s Value

Dealers give you a price for a trade-in based on its value and condition. While you can’t do anything about the mileage or age of the car, you can make sure it is in pristine condition. Clean it up, wash it and make sure it looks as nice as possible. A clean car looks more valuable and will even impress dealers because it will be ready to sell sooner than one that needs a lot of work.

Fix any broken parts within reason. If you can do the job yourself and only spend a few dollars on the parts, you will reap the benefits in the trade-in price. However, if the repair is expensive and you have to take it to a repair shop, it may not be worth the time and cost.

Do your own research to see what similar cars are worth before you take yours in to trade. Just make sure you understand that you will be getting wholesale value from a dealer instead of retail value. You still want to get the most money possible when you trade it in and it pays to know your car’s value.

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