Learn How To Trade in a Car For the Best Deal Possible

When you’re ready for a new car, you might decide to trade in your old one. A trade in gives you a credit toward the purchase of a new or used car. Plus, trading is typically easier than selling your car to a private buyer, and it can save you time and stress.

If you’re getting ready to trade in your car, there are a few things you should do before you head to the dealership, like research the value of the car and get the car cleaned. You can use our buyer's guide to help you through the trading and purchasing process of your next vehicle.

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How to Trade In a Car

Trading in your car is relatively easy, but you can put in some extra work to ensure you get the best value for your vehicle. Follow these five steps to trade in your car successfully:

1. Value Your Car

Finding the value of your car is an important part of the trade-in process. When you know your car's value, it's harder for dealers to undervalue your trade. You can use online tools, like Car and Driver's, to find your car’s value based on the make, model, year, mileage, condition, and trim level, and get a realistic trade-in offer.

Other factors such as supply and demand, the time of year, and gas prices can also affect the value of your trade. Having an estimate of your car's current worth and average sale price can help you negotiate your trade and compare offers to get the best deal. However, know that the trade-in value is usually lower than the actual sale value.

2. Compare Offers

Before you sign an agreement or complete your trade deal, it might be worth having several dealers look at your trade in and give you an offer. Different buyers may offer different amounts for your trade depending on factors like their supply and demand and consumer demographics. You may be able to get more than your car is worth if the conditions are right.

Get a few different offers and evaluate which dealer can offer the best value for your trade in. If possible, get a trade in offer from a dealer that has a new vehicle you want to purchase with your credit. You can even look for car dealerships that offer additional trade-in incentives, such as cash bonuses, lower interest rates, and warranties.

3. Gather the Paperwork

When you trade in your car, you will need to provide the title and registration to legally transfer ownership. Gather your paperwork before you head to the dealer.

You might also want to call the dealer to find out what forms will be needed so you come prepared. Having valid paperwork and proof of ownership for the vehicle can make it easier to perform your trade and can help you avoid delays or fees.

If you’re planning to buy a new car and take out a loan, you should also organize any documentation you may need to establish the car loan. Bring your valid driver's license and proof of insurance.

If the dealer asks you to provide any tax forms, pay stubs, or bank statements, make sure you have them printed before your appointment. Arriving at your trade or purchase appointment prepared can help expedite the process and get you in your new car sooner.

4. Clean Your Vehicle

Taking the time to clean the inside and outside of your vehicle may increase its value and help you get a better trade in offer. An already cleaned vehicle saves the dealer time and money, which they can pass on to you by increasing the value of your trade-in credit.

You can clean the car yourself or pay to have it professionally detailed. Don’t forget to remove your belongings from the trunk, console, and glove box.

5. Make an Appointment

When your car is ready to go, you can schedule an appointment to complete the trade. Be prepared to negotiate with the dealer to ensure you get a fair value for your car. At this point, you can also shop around for a new car.

If you find one you like, the dealer will apply the trade in credit to the new car purchase, and help you apply for a loan if you want to finance the rest.

Reasons for Trading Your Car

There are a variety of reasons why you might decide to trade in your vehicle. Here are some of the most common reasons to trade in a used car and look for something new:

Expensive Repairs

When your vehicle requires expensive repairs or maintenance, you might decide to get a newer model, cheaper model, or a car with fewer miles. The cost of car repairs can add up quickly, so choosing a different vehicle could help you save money in the long run.

Upgrading

Sometimes, you may want a newer vehicle that offers better safety, design, or performance features. When you're looking to upgrade, trading in your current vehicle can help offset the cost of the newer one.

High Mileage

If your car has a high mileage, you might decide to trade it in for a used model with fewer miles or a brand-new car with no mileage. You can research the average maximum mileage for your vehicle’s make and model and consider its service history to determine the remaining lifespan.

Benefits of Trading Your Car

Trading in your used car with a dealer can streamline the process of getting a new vehicle. However, trading in your vehicle can also provide you with other advantages, including: