How to Value Your Trade-In
When you’re ready to change vehicles, having a trade-in can work in your favor. Trade-ins allow you to save some money on the new vehicle. Before you head in planning to make a trade, it’s a good idea to be familiar with your trade-in value. This gives you the opportunity to be aware of the value for negotiation so you know you’ll get a fair deal.
Check out these helpful tips to value your trade-in. Come see us at Preferred Chrysler Dodge Jeep, and let us help you with your trade.
Start by Gathering Vehicle Information
To get an accurate value, you really need to ensure you understand the details of your vehicle. Knowing your make, model, year, and vehicle history is all an important part of this. There is a lot of detail that goes into determining a vehicle’s value, from understanding basic wear and usage to the very make and model of the vehicle. These are some of the important factors used in a valuation:
- Make, model, and year of vehicle
- Total number of miles driven
- Honest condition (consider wear, scratches, dents, mechanical problems, etc.) - most valuation tools have poor, fair, good, very good, and excellent, but this can vary
- Vehicle history (maintenance, care, accidents, etc.)
- Options or features included with this car
All of these elements have some sort of weight on the fair trade-in value. When you head to the dealership, these details are considered in their calculations to give you an offer.
Market Value Research
We recommend doing some basic research on common market values of your vehicle. You can do something as simple as googling the make, model, and year of your vehicle just to see some average price ranges.
To get a more accurate number, you can use a valuation tool for a range of the estimated value. Keep in mind that the valuation tools give you a response based on your input. It may not be exactly the same as what a dealer might offer you, but it should be close if everything you enter is accurate.
Sources like Kelley Blue Book and other valuation tools are common to get estimates for value based on a car's age, condition, and the current market demand.
What is the Vehicle’s Condition?
A lot of people are not honest with themselves about the true condition of their vehicle. It’s been a ride-or-die for them and a trusty companion. When you think about the condition, think about it from the eyes of a stranger. What blemishes are they going to notice when they look at the vehicle?
Don’t look for a value on a vehicle in excellent condition if the seats are stained, faded, torn, and just plain worn out. You will need to consider the condition of these things:
- Exterior - scratches, dent, rust, appearance
- Interior - upholstery, dashboards, carpet, cleanliness, electronics
- Mechanical - engine, transmission, brakes, electrical elements
- Tires - tread wear and overall condition
These are the parts that a dealership will inspect for a valuation. If there is a dent or if the tires desperately need replacing, then this will reduce your total value.
Room for Negotiation
When it comes time to make the deal with your trade-in, just know there is always some room for negotiation. While you may not be able to dictate the highest possible price, you should be able to negotiate to get as fair of a deal as possible. Come prepared with your research before you start making any demands, as you will likely need some of that information to back you up.
Some dealerships will offer you a fair price from the beginning, but you need to fully understand their offer to know whether or not you are getting a good deal. Some start low. After all, they need to make money, so if you will take a low offer that’s what they will give. Every location is different and will have its own practices in place.
When you do start negotiating, ask the dealer to separate the trade-in value offered from the new purchase value. This helps keep the numbers straight and avoids confusion.
Once you settle on a number you can both agree on, you can make the deal! Keep in mind you are in control. If you can’t get the negotiations where you want or need them, it is ok to walk away or take the time to think about it before accepting.
Bring Us Your Trade Today!
We work hard to make fair trades with each of our customers. Knowing the value of your trade-in is such an integral part of the new car process. Take the time to do your research and determine what you are willing to accept when the time comes to negotiate.
When you’re ready to discuss your trade, we hope you will come see us at Preferred Chrysler Dodge Jeep!