4 Things to Know When Trading in Your Car

Your trade-in can make a big difference in what kind of vehicle you’ll be able to purchase. Often, it’s the down payment toward your next car. The goal is to get the most value out of it, and there are a few ways to prepare your current ride. Before you head down to the dealership, it’s helpful to remember that doing a trade-in is not simply handing over your car when the time comes. You’ll need to prepare, and have a few things ready. Here are four things you’ll want to know about trade-ins.

#1: Preparing the Vehicle

The first thing you’ll want to do is get your vehicle ready for trade-in. A clean and working car is going to demand a better trade-in value than one that is dirty, worn, dinged and has easily fixed issues. Take the time, and even a little bit of money, to make sure everything is as good as it can be. Some things to address include:

• Detail – A simple car wash won’t do the trick this time. Either roll up your sleeves and really scrub down every nook and cranny of your car, or take it to a professional detailer. It doesn’t have to cost a ton of money, but this is probably the most important item on your list. Focus on exterior, interior, dirty or stained areas as well as cleaning up the trunk, dash, console, windows, tires and removing any odors if possible.
• Remove personal items – Stickers, your junk, CDs, things hanging from the mirror and anything that didn’t come with the car should go.
• Fix what you can – If you are able to throw a few dollars into the car to get it in tip-top shape, do it. Think dents, tires, burnt out bulbs and any minor mechanical issues. It’s amazing what a little work can do for the car’s value.
• Assess major issues – Is it going to cost you more to fix a major mechanical issue, or should you leave it be? Do a little research and get an estimate. It may be worthwhile to fix a big problem before you trade-in your vehicle, or the cost might be too much. The only way to know is to look into it.

#2: Do your Research

Don’t rely on the dealership alone to find the value of your current ride. It’s essential to take the time and do it yourself. Look at resources like Kelley Blue Book, Edmunds.com and any other valid sources. Be realistic when determining the value—is your car really in excellent condition, or is it fair? Having the information with you gives you some negotiating power. A dealer should be able to tell you why they’ve come to the number they have. You can put your research together and come up with a trade-in value everyone is happy with.

#3: What to Bring

To expedite the process of getting your new car, it’s important to have the right items and information with you for your trade-in. You’ll want:

• Title or car loan information, including lender and account number for a car loan
• Current/valid vehicle registration
• Any owner’s manuals or service records
• All sets of keys, fobs and remotes
• Your driver’s license

#4: Paperwork

Be ready to read through some paperwork during your visit. When doing a trade-in and buying a new vehicle, you need to take the time to understand the contract before you sign. It’s a big purchase, and a good dealership will walk you through any information you don’t understand. Things to look at are the interest rate, your monthly payment, trade-in value, loan amount and length of the loan. Look at the fine print—it’s there for a reason. The more you know, the more satisfied you’ll be with your purchase, and you’re less likely to have any surprises.

A trade-in can be an excellent tool. It can help get you into a more reliable, or nicer, vehicle. When you’ve completed a few steps before you head to the dealership, the process is often easier and faster. Before you know it, you’ll be the proud owner of a new and improved ride, one that can last longer—or at least until you’re ready to do another trade-in.