Answering how to trade in a car is simple, and should ease the stress of selling your old car. While it’s a given you will get more money for your car by selling privately, that process is often on an unpredictable timescale with fickle buyers and other variables adding delays and complications. Trading in a car usually doesn’t take long, and sets you up for your next purchase at whichever dealership takes your old one. Electric cars, hybrids, and traditional gas cars all hold value at different rates, so your trade-in could be worth more (or less) than you expect. Here is the entire car trade-in process in four easy steps – whether you’re buying a budget car or a luxury model from a brand like Infiniti – and some helpful tips and tricks along the way to getting the most money towards your new purchase.
Some dealerships might have their own process for trading in a car, and car values along with other variables will change from location to location. This article is not sponsored or otherwise paid for by any given dealership or franchise.
Step 1: Do Your Research
Know the car you plan on buying next
The first step of the process is simply knowing what you want next. Determining your next purchase will set you up for success when choosing where to trade your car in. If you plan to buy a brand-new vehicle, then researching local dealerships and their sales people might make your day easier. Otherwise, dealers like CarMax let you trade your old car in when buying another used car. Be warned, though, that they give notoriously low offers on trade-ins, even compared to other dealerships.
Use online tools to estimate your car’s trade-in value
One mistake people make when buying a new car is not knowing their current car’s trade-in value. There are plenty of online tools for discovering your car’s value; the most popular and often most accurate tool is Kelley Blue Book, which will give you an estimated trade-in value, private market value, and more. You should also research comparable cars for sale from dealers and from private sellers to estimate how much your car could be worth outside of trading it in.
Step 2: Prepare The Necessary Documents
Gather the necessary documents
Having the right paperwork will make the trade-in process easier. The answer to “do I need my title to trade in my car” is usually a resounding “yes,” unless you have a lien on your current car. In the case of an outstanding balance on your current vehicle, selling or trading in your car could be a little trickier. It’s best to resolve your automotive debt prior to trading the car in. Below is a list of the most important documentation you’ll need when trading in a car.
- Title and registration
- Any documentation about current liens/outstanding loans
- Maintenance/service records
- Warranty cards/information
- All the car’s keys
Step 3: Get Your Car Ready For Selling
While it might seem obvious to many people, washing your car will help you make more money when it’s time to trade it in or sell it. Going as far as detailing your engine bay will show the dealership that you take extra steps to ensure your car’s good condition. Keeping it clean is not the only part of preparations, though. Before approaching a dealership, consider what modifications you have done to your vehicle, and what problems it may have.
Modifications are a tricky subject when selling a car, since they usually do not add value. Even if you spent ten thousand dollars on wheel rims, tires, a suspension, an exhaust, etc., the dealership will probably not give you more money than the car is worth in its stock form. It might be worthwhile to remove and sell your aftermarket parts, and replace them with the proper factory parts.
You should also consider any issues your car might have. If you have lingering mechanical, electrical, or other problems, then the dealer will most likely subtract an estimated repair cost from your trade-in value. Cosmetic issues like faded paint, scratches, and dents could also impact how much you can receive when you trade in a vehicle.
Step 4: Ace The Negotiation Stage
Negotiating with a car dealer could be the worst hells imaginable, or it could be just as straightforward as handing over your keys for a stack of cash and being on your way. There are tons of tips and tricks that can help you in your negotiations, but the gist of them comes down to knowing what your car is worth, and how much you should be paying for the new car before you ever get to the dealership.
Most negotiating will be done at the dealership, but some salespeople list cars online and are available to talk money over the phone. One important caveat to that last part, though: get your deals in writing! Shady dealerships and salespeople might tell you one number, then give you a different price entirely the day of the trade. The dealership will need to see your car in person, though, in order to give you their final estimate of its value.
Step 5: Finalize The Deal
You’re almost done! There’s just one step left: sign the paperwork. After you go through the processes above, and sweat through the negotiations, you can finalize your car trade-in at the dealership with a few well-placed John Hancocks. You might not have gotten as much for your car as at a private sale, but you can leave the dealership with a new car that day. This last step is done entirely at the dealership. You’ll usually be sitting at a desk with the salesperson while they explain each paper you need to sign as you go along. Feel free to stop them at any time if you have any questions, but by this point, the cards are on the table, and you should know the numbers by heart.
Pros And Cons To Trading In A Car
Pros
- Saves time
- Straightforward process
- Usually less of a hassle
- Dealership might offer trade-in incentives
- Safer than selling privately
Cons
- You will not receive the full amount of your car’s value
- Not all dealerships are trustworthy
Summary: Preparation Is Key
Trading in a car might sound daunting when you get to the dealership, but following the steps above will streamline the process and take away most of the stress. Here are the basics, in case you missed them: Step 1 entails researching your next car, the dealership, and your current car’s value. Once you have an estimation of your car’s worth, prepare it for the trade. That means thoroughly washing it, gathering any documents and keys, and potentially taking care of any issues still present. When you get to the dealership, or talk to a salesperson online or over the phone, negotiations can begin. It might be the worst part, but stand your ground, and you’ll make it through. Finally, you can sign the paperwork. Finalizing the trade-in can feel like a burden being lifted. That’s it!
Sources: Kelley Blue Book, Progressive