Money-Saving Secrets of Used Car Trade-ins
Are you preparing to trade in your used car? Congrats! But, first: it’s important to know how to save money on your trade-in.
There are several things you can do to maximize the value of your trade-in:
- The appearance of your vehicle is an important consideration when the used-car manager estimates its value.
- If your car needs repairs, it could help to get an estimate to take with you. This could provide a little bargaining power when the dealer’s estimator starts deducting repair costs from the figure offered to you.
- Try to sell your car to a used-car dealer. They’re always looking for clean, low-mileage vehicles for their lot. And if yours is a popular model, you just might be able to get more than the wholesale price for it.
Now, Let’s Talk About Appraisals…
Once you have appraisals, you have a couple of options. You can either take one of the offers you have, or negotiate for a better price. If you have your paperwork in order, you could be done in 30-40 minutes. If you are upside down on the car and need to fold the loan balance into your next car’s financing, however, the dealership is the best place to do so.
If you’re deciding between two dealerships with similar offers, you may want to lean toward the one at which you intend to buy your car. This gives you some leverage, since you’re giving the dealership business on both the trade-in and the car purchase.
The first trade-in offer at a dealership is often on the low end, so there’s room to negotiate. Say something like this: “I intend on buying a car from you today, so if you can improve on the trade-in price, I’d love to give you my business.”
If you keep getting the same offers for your trade-in and none of them seem to be what you had in mind, you may have to temper your expectations. This may very well be the market value of the car, no matter what you think it should be worth.
At this point, you can either bite the bullet and take what you’re being offered, or try to sell the car yourself. Some people may even choose to keep the car as a daily driver, rather than pile the miles on the new car.
You may be able to make timing work to your advantage. Target the end of the month, when the dealer may be more willing to give you an attractive offer, or look for special promotions, such as when the dealership may offer extra cash as part of a trade-in event that’s meant to beef up the used-car inventory.
Keep negotiations for the new car and your trade-in separate. The trade-in amount should be written in the contract as a credit against the purchase price of the car. In some states, you only pay sales tax on the difference between the new car and the trade-in. This means that on top of what you receive for your trade-in, you are paying less sales tax on your new car. This tax advantage is a net savings for you and could make you decide that trading in is worth it.
You’ll get the best deal by keeping the purchase and trade-in negotiations separate. If you allow salespeople to mix the two, it gives them too much opportunity to manipulate the deals so that a good price in one area could be cancelled out by a poor price in the other.
We suggest that you nail down the price of the car you want to purchase first, then discuss your trade-in allowance. Since dealers can make money reselling your trade-in, there is some incentive for the dealer to be competitive with a trade-in offer.
Keep your eye on the bottom line. What’s important is the net amount you have to pay. Be sure to read and understand any sales contract before you sign it. If you have a problem with any terms or conditions, ask questions. After you sign, you’ll have little recourse.
Contact the Experts at PAACO Today
Do you have further questions about money-saving secrets of used car trade-ins? It’s time to give PAACO a call! Here at PAACO, we’re happy to provide personalized assistance, if you’re feeling overwhelmed with the car-buying process. In fact, for over 24 years, PAACO has been helping good people get the transportation they need and deserve. Because, here’s the thing: regardless of past credit challenges and financial transgressions, we at PAACO feel that our customers deserve respect. In fact, our primary goal is to provide people with a superior customer service experience, and give them the royal treatment they deserve.
Providing excellent, top-notch customer service and support has always been our highest priority – after all, our customers are the reason we’re in business. Our team of Account Managers is dedicated to helping each of our customers achieve their dreams of vehicle ownership! We also have an excellent service department, staffed with knowledgeable and qualified experts to help facilitate any mechanical concerns you may have throughout the course of your contract.
Our inventory selection is better than ever – we have over 900 vehicles to choose from! Every vehicle we sell undergoes a rigorous 70-point inspection by one of our 10 certified mechanics; PAACO vehicles also go through a third-party inspection, to ensure that we are giving our customers a quality vehicle. We back all our vehicles with a FREE 6-month, 6000-mile warranty (whichever comes first, based on sale date).