Many times people have a vehicle to trade in. It’s great if you can sell your trade for a retail price before you buy a new vehicle but there are draw backs to selling yours outright.
- You have to put up with people coming to your house or business and then driving and, looking and making ridiculous offers.
- The sales tax on your new vehicle is figured on the amount over your trade value, in most states. trading usually sales you some of the sales tax.
- Convenience. Trading is just easier.
For more help read on……
Personally I don’t sell my trade outright. I always trade in my old vehicle if it is a vehicle I purchased, instead of leased. ( leasing is cool . No trade issues!!!!).
How do you know what it’s worth or what is fair? There are sources to look up the trade value of your vehicle. Kelly Blue Book, NADA, and a few others. Another possibility is Carmax, they will buy your vehicle even if you aren’t buying one from them. So will many of the local used car dealers. If you don’t have a Carmax in your area, try a couple of used car dealers for an offer. If you get a price from a used car dealer, keep that figure in mind but talk with your selling dealer before you sell the vehicle as an independent sale.
The Dealer you are shopping to buy your new vehicle might present your trade value and any discount on the car or truck you are buying as one figure. The best way to know what kind of deal you’re getting is to ask for a “no trade” price and then ask for an appraisal of your trade in vehicle. This way you will know exactly what the dealer is offering for your trade. If they are low on your trade, that’s OK if you have a price from an independent used car dealer. The dealer you are buying from should be more then glad to take your trade in and sell it to the independent dealer or offer you more. It’s a little work but it can be a huge difference in the price.
Your trade is worth different amounts to different dealers. Getting an independent price on your trade can push, the dealer you are buying from, up on your trade in value. That’s a good thing because sales tax is charged on the difference between your trade and the car or truck you are buying, in most states.
You might call this hard ball but it isn’t. It’s just good business! Buying a car or truck is not the love affair that some sales people try to make you believe it is.
You are the customer so the selling dealer should be willing to do what ever it takes to make you happy with the transaction and save you as much money as possible. The selling dealer tries to get as much as the market will allow on the one you are buying. It’s only fair that you do the same on your trade in.
When the dealer does an appraisal of your trade, make sure any information you give is accurate. If your trade was in a wreck and the dealer asks “How extensive the damage?” It’s OK if you don’t remember exactly and remind the dealer that it was fixed. If there are obvious mechanical problems the dealer will find them. You will be required to sign for the mileage so if it isn’t accurate explain why it isn’t accurate, when you are asked. Mileage and it’s accuracy is very important to everyone. It is a federal law that effects you as much as the dealer.
Last but not least, don’t sign any agreement to pay for any issues the dealer did not find on your trade. Your trade should be traded “AS-IS”. As long as you have given honest answers your obligation ends after trading.
It’s much easier then it sounds. Shop your trade with independents and check the price online. Get a figure on the new car or truck without a trade and then put you cards on the table as far as your trade and the shopping you have done. This definitely works!