So you’re in the market for your next vehicle and you’re on a budget, willing to trade in your current vehicle toward the cost. It’s certainly a sound idea, and we here at Roseland Motors would be delighted to appraise your vehicle for that trade in. But before then, we’d like to give you some tips on how you can make that trade-in as appealing as possible to buyers. Here are some excellent tips on how to get the most value out of your trade-in:
Do a Bit of Research First
Finding out what your vehicle (both the model and trim level) is worth is a crucial first step. Knowing the numbers and then confirming them with the dealership… Does that sound to you like a strong way of starting the dealer-buyer relationship? It really is, and it’ll also give you confidence in the negotiating process with the dealer.
The best places to start are websites like Kelley Blue Book and Edmunds.com. These are American sites, but they’re full of excellent info for shoppers and sellers alike, and general tips for how to get the most value out of your trade-in. After, take a look at the Canadian market with the Canadian Black Book website. This website offers market pricing on older models and gives out “Best Retained Value” Awards for many of them.
Your Own Appraisal
After you’ve done your research, do an honest appraisal of your vehicle’s condition. The exterior and interior conditions of the vehicle are huge factors, and as for the internal components and the engine, your go-to local repair shop can give you their opinion. The dealer you plan on taking your vehicle to can also do this for you.
Mileage is another big factor to consider during your own appraisal. If you’ve racked up a lot of kilometres driving on the highway, as opposed to mostly in the city, then this is worthy of consideration too, since driving on the highway is generally less stressful on the mechanical components of your vehicle.
If your vehicle hasn’t been cleaned (both inside and out) for a while, then for about $50.00 you can get this done quickly over, say, a nice lunch.
We recommend not highballing the price of your vehicle. Asking for a fair price is the best way to begin the conversation, and you’ll often get that price in the end!
Understanding the Dealer’s Perspective
A dealership has some considerations you might not have, and it’s important to keep those in mind in the conversation. For example, some dealers will be able to sell a trade-in more quickly than others, and this is factored into their offer. The condition of your vehicle is a matter of perspective and some dealers will praise some qualities higher than others. Recent paint work, any repairs the vehicle might need before they can sell it–these are some of the additional factors to consider.
Dealers need to make a profit margin on the vehicles they buy and resell. Generally, this number varies from 2-5% on the transaction. This will be factored into the offer they make you. The math generally works out like this: the market value of your vehicle, minus the dealer’s cost to refurbish it, minus the profit margin, equals the offer the dealer will make you.
You’re Welcome to Bring Your Trade in to Us
So there you have it: how to get the most value out of your trade-in. We do recommend taking this advice prior to bringing your vehicle in for appraisal, and once you do come in to see us, we’d be delighted to answer any questions you might have about the process. Or should you have any questions for us today, we welcome you to get in touch with us to have them answered. You can also begin the trade-in process online, should you like!