If you’re ready to get a new car but are looking for a way to not have to pay full price for the vehicle, you may want to consider trading in your older car as you buy your new one.
While this can seem like a great exchange, it’s not always as straight-forward as you might like to believe. To help you get the best possible deal from this situation, here are three things to consider when trading in your old car for a new one.
Your Old Car’s Value
The very first thing you’re going to want to figure out before you go forward with trading in your car is what that car’s value actually is.
To determine this, Nicole Arata and Philip Reed, contributors to NerdWallet.com, recommend that you check various pricing guides to help you find out what cars like yours are worth at this moment in time. The actual price will depend on things like mileage, the condition of the vehicle, where you live, and what options or maintenance the car has. By looking at a number of different pricing guides, you’ll get a good idea of the ballpark that you should expect your car to get when trading it in.
According to John M. Vincent and Ben Koses, contributors to U.S. News And World Report, many people find that they don’t get offered as much for a trade in at a dealership as they may have been able to get from selling the car on their own.
While this can be the case, you have to think about how much you’re willing to pay for the convenience of getting rid of your old car at the same time as you purchasing your new car. So although you may be able to get more money by selling the car privately, you’ll also likely spend a lot more time and energy figuring this out than you would simply showing up to a dealership and using the car for trade-in value.
Visit Multiple Dealerships
Once you know what the value of your car is, you can still take steps to ensure that you’re able to get the best possible deal with trading in your car.
To do this, Valencia Higuera, a contributor to MoneyCrashers.com, suggests that you visit multiple dealerships to see what they’re willing to pay for your car when you trade it in. Once you find the best price for your car, you can then apply that to the new car you choose to buy.
If you’re going to be getting a new car soon and would like to get rid of your old car at the same time while also getting some money to go toward your new purchase, consider using the tips mentioned above as you figure out a trade-in.