Question: How can I avoid getting an unrealistically low trade-in allowance on my trade-in when the time comes since I have to wait several months for my new car to come in?

January 03, 2006

Hi Tony

I am currently in negotiations with a car dealership regarding a new car purchase. I've got them down to a price that I am willing to pay. However, it has to be pre-ordered due to the specs.

I am planning on trading in my old car (I have not told them yet), however they mentioned that they can't commit to talking about a trade-in until the new car comes in which will be three months.

How can I ensure that when the car comes in and we talk about the trade-in value they do not low ball me with a low trade-in allowance because I've already commited to purchasing the car with my small deposit?

Any suggestions?

Thanks,

Joe

Answer:

Hi Joe,

Well, the first thing you need to remember is that the car dealer will only give you wholesale value for your trade-in. Even under the best of circumstances that's all they will give you.

Since you have several months before your new vehicle arrives why don't you try to sell your car privately? You will get more for it this way, and then you don't have to worry about what the car dealer will give you.

You can also take your car to several other car dealers and ask them to make you an offer buying it straight up. They too will only offer you wholesale value, but this will at least give you some idea of what to expect if you do indeed trade-in the car.

The bottom line is that trade-in values are very subjective. The car may be worth more to one car dealer than to another. Still, finding a private buyer will bring the most money for it. It just depends on whether or not you want to go through the hassle of selling it.

For some selling tips go to: How to Sell Your Car for the Highest Possible Price!

Good luck . . .

All my very best . . .

Tony Iorio