Chicago Bankruptcy Lawyer Blog

On the subject of buying new cars; many consumers don’t give enough thought to the trade-in value of their existing automobiles. The salesman says “I’ll give you $5,000 for your car,” and most people take the offer without knowing whether they’re getting a reasonable deal or whether they’re losing valuable money. How can you decide whether you’re getting enough for your trade-in? Consider these valuable tips:

Spend a little; make a lot.

The condition of your trade-in vehicle has a lot to do with the trade-in value that a dealer is willing to offer. If your car is muddy, messy and poorly-maintained, the dealer has to do more to make your car salable, and will pay you less for your car. Get your car detailed before you take it to the lot; a simple step that costs you $50-75 can get you hundreds more on your trade-in. Make sure your oil change is up-to-date and that your car appears to be well maintained; the dealer will assume he has to do less to make the car ready to resale, and will offer you more money. One of the key criteria to determining trade-in value is condition, so don’t neglect this aspect of your vehicle when you’re car shopping.

Figure out what your vehicle is worth.

Don’t trade-in your car without knowing what it is worth. Check the Kelly Blue Book value on your car – something you can do online with just a few minutes of research – and be realistic with your expectations. Don’t expect to get full value for your car if the upholstery is ripped, the dashboard is scuffed up and the paintjob is missing a few chips. But don’t let a dealer take advantage of you, either.

Once you determine the Kelly Blue Book value of your car, do a little shopping to see what people are charging for similar models. Are other dealers asking considerably less than Blue Book value for your car? If a newer model has come along at a cheaper rate, your car’s value won’t hold up as well. Make sure you know what dealers are asking before you demand full value, and keep in mind that the dealer wants to make money from the transaction, too.

Beware the terms of your purchase if you haggle over trade-in value.

In some ways, it’s almost better to treat a new purchase and a vehicle trade-in as different transactions. Before you discuss your trade-in value, make sure you know the cost and terms of your new vehicle. Many dealers are willing to offer more for trade-ins if they can make the money up by charging more on the new car, so be wary of this tactic and beware a change in cost or terms if you press the point of trade-in value.

Don’t be afraid to shop around.

Dealers with different inventories may be willing to make different offers on trade-in value. If one dealer is unwilling to pay you what your trade-in is worth, go to another dealer. You may get a different offer, if the new dealer has more of a demand for your vehicle on his lot. A good rule of thumb is to try three different dealers to get a feel for market value before making a decision about trade-in value.