It takes time and effort to try to sell an old car privately to try the get the funds to buy a new one. Often people decide to trade in an old car because it is easier and it can help them get financing from a car dealer. The more knowledgeable you are, the better your position as a customer. The following are the facts to know when you trade in a used car.
It doesn’t matter which dealer you approach to trade in your used car, the quote you receive will always be lower than the market price. The price gap is what translates into dealer profits and the sales executive’s commission. You can use the Kelley Blue Book for a rough estimate, but it is likely to indicate a value that is far more than what the dealership offers.
Negotiations May Get Confusing
When you negotiate on the dealer’s quoted price, you are negotiating prices of both your used car and the brand new car you have your eyes on. If your down payment and monthly remittances are also part of the discussion, you’re being deliberately confused. The sales manager, on the other hand, has his computer for assistance. Be aware of the numbers and ask questions if you don’t understand them. After all, the bottom line makes a difference to you.
The Salesperson Earns Commission
A salesperson works for the dealer and is concerned about his commission. A good salesperson also wants to please the customer to get return business and positive word-of-mouth. It is a fine line for the sales staff and buyers must be careful to work with an honest, reputable car dealer. This makes a big difference in the deal you get.
While you might think your old car is worth a fortune, it probably isn’t. Be prepared to have cash on-hand to get the used car you want.