How Do I Know If A Dealer Trade-In Value Is Fair?



How Do I Know If A Dealer Trade-In Value Is Fair?

Getting rid of an old car is one of the priorities when buying a new one. Selling the car to a private party can get you more money, but it can take time to find a buyer who offers a good price. Hence, many people consider the trade-in option. While it's convenient, many people feel that the trade-in value offered by the car dealer is not fair. So what you should do? The answer: find the right trade-in value range of your car and then negotiate a fair trade-in price with the car dealer. We have shared some information below on how to calculate the right trade-in value range of your used car.

Is the Car Dealer’s Trade-In Value Fair?

Most car dealers offer a wholesale price for your used car. The car dealer expects to make a decent profit after spending some amount on reconditioning of the car. The wholesale price offered by the car dealer depends on several factors like the make and model of the used car, the year of manufacture, the popularity of the car model, engine type, condition of the paint and interior of the car, condition of the tires and many more things. It’s common for the trade-in value offered by the car dealer to be less than the price that you would get if you sell the car to a private party. If you want the car dealer to give you a fair trade-in value for your used car, you need to find out the right trade-in value of your car. Here are some useful tips to find the right trade-in value of your car.

Research Online

To find the right trade-in range of your used car, visit websites of car dealerships. Look for models similar to yours and note the prices of the cars. You need to visit several car dealerships in your area to get an idea about the prices of used cars. The prices you see on car dealership websites are retail prices and not trade-in prices of cars. Generally, car dealers expect to make around $1,000 -$1,200 on the sale of a used car. This is a general estimate which might differ with each car dealer. To get an idea about trade-in value range of your car, you can subtract $1,200 from the retail price of models similar to yours.

Find Out Condition of Your Car

The retail price of similar car models varies because the condition of the cars is different. To get the right trade-in value range, you need to understand the real condition of your car. If the car condition is excellent or good, you can expect the car dealer to raise the trade-in value of your car. A car in good condition would have the following characteristics

  • There are no mechanical problems

  • The engine runs smooth

  • The paint is shining and there are no dents or scratches

  • The tires have good tread life remaining

  • The exterior and interior is in good condition

Before you offer the car as a trade-in, get it reconditioned. When you have knowledge of the right trade-in value range, you can negotiate with the dealer for a higher trade-in value.


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