Car financing can be tricky, and trading in your old car can sometimes make the process even more complicated. It’s important to make sure you have everything you need before going to a dealership. However, it’s also important to be aware of the following things you should avoid doing when you want to trade in your vehicle for a new one.
1. Overestimating or underestimating your car’s value
Entering trade negotiations for your vehicle can be difficult, and overestimating your vehicle’s value won’t help you get a fair price. But you also don’t want to trade in your car for much less than it’s worth either. Know how much your car can realistically sell for and be prepared to negotiate. You can find fair prices for your vehicle on valuation sites such as Kelley Blue Book.
2. Not cleaning your car
Dealers want to see a clean car that they won’t need to spend more money cleaning. If they have to clean the vehicle themselves, they will almost always try to offer less money. Before trading in, always make sure your car looks and smells as clean as possible. This can significantly increase the value offered by the dealer.
3. Over-fixing your car
It’s beneficial to spend some time sprucing up your car before starting trade negotiations, but make sure to set a budget for small repairs. Perform simple maintenance and cheap cosmetic fixes (like repairing scratches), but remember that you don’t want to spend so much money that you end up losing money on the trade.
4. Forgetting important documents
Trading in a vehicle requires you to have your title and other important documents such as maintenance records with you at the dealership. Maintenance records can help support your claims about the car’s previous damage and the repairs it has undergone. When looking at your car’s title, make sure you know whose name is on the car. If multiple people are listed on the title, everyone will need to be present during the trade. If your spouse signed the title and isn’t there to trade the vehicle with you, you won’t be able to complete the trade.
5. Not having all the accessories
Trading in your vehicle means you’re also trading everything that comes with it. You’ll want to make sure the original owner’s manual and any extra keys are in the vehicle when you arrive at the dealership. Dealers like used cars that still have all the accessories and may even offer you a better deal on your trade.
6. Not knowing the car’s history
The car’s history is important when buying a used car, and it will be doubly important for dealers trying to make a profit from selling your old vehicle. Knowing your vehicle’s history will help you during trade negotiations. If you’re not the first owner of your vehicle, be aware of any issues that might have been caused by previous owners. A dealer doesn’t like finding problems with the vehicle that can’t be explained.