| Selling vs. Trading-in Your Car |
| Brought to you by Autoweb.com |
| Determining Your Car's Value |
| If you are planning on buying a new car, deciding whether to sell your old car
yourself or trade it in on the new one is a tough decision. The auto market is extremely
volatile. The first bit of research you'll want to do is establish the current value of
the vehicle you are going to sell or trade in. Be sure you have a current issue of the
literature you are are looking at, as prices can vary greatly from year to year. The Used
Car Guide will have specific factors to figure into the valuation, such as the mileage of
your car. But remember, it is just a guide. |
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| What's Your Timeframe? |
| Once you have established the car's value you can decide your next step. Of course,
selling the old car yourself and having cash in hand to use in negotiating the deal on
your new car is appealing. But you also need to consider the time it will take to make the
sale. Keep in mind that this can be an arduous process. Maintaining a clean car, making
appointments with prospective buyers and haggling over price takes time. If you are a
person with a busy life (like most people) and this sounds like too much, doing a dealer
trade in might be your best bet. Let's look at some important things to know about the
trade in process. |
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| Cash vs. Convenience |
| The dealer will buy your car wholesale. In other words, he will give you a price that
will allow him to resell the car for hundreds or thousands of dollars more. Remember that
the dealer would like to get as much from you as you would from him. For this reason, it
is best not to discuss your trade in with the dealer until you have a price for the new
car which the dealer and you can agree on. This will allow you to clearly see the
"trade difference figure". That is to say, you've bought a new car and traded
your old car for a portion of the cost. Is the trade difference in the neighborhood of the
price you were hoping to get for your old car? If it is, you're getting a fair deal. If
not, sell it yourself and come back to the dealer with cash, the more powerful bargaining
chip. |
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| Prep for a Trade |
| Once you've decided to trade in your old car, there are a few things you'll want to do
before you take it to the dealer. Fix any visual problems with the car (a cracked window,
paint scratches, missing trim). Don't worry so much about the non-visuals such as tune-ups
and oil changes. These things won't de-value your car with the appraiser like visual
problems will. A good visual presentation takes away the dealer's ability to talk you down
on price. His price tag for cosmetic repairs will be much higher than yours, whether you
do them yourself or pay a professional. The bottom line is to be prepared. Know what you
old car is worth, know what you can afford, and don't allow yourself to be talked into a
deal that isn't right for you. So you've decided to sell your car. Taking a little time to
prepare your car for sale can help you get your full asking price. |
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