Trade-ins are some of the biggest moneymakers for dealerships.
If you want to maximize the value you get for your trade,
You have to do some research before attempting to trade it in.
1. Start online. Research the value of your trade-in.
Leverage these online tools for the following:
Cargurus > Local Market Prices Carvana/Carmax > National Market Prices Kelly Blue Book > Suggested Retail Value Your friend the local dealer > Anecdotal insight Combine these data points. Voila, you're set up for success.
2. Sell it. Either through a local dealer or an online retailer.
Now that you know what your vehicle is worth, time to say buh-bye.
In today’s competitive market, you should be able to quickly maximize your value.
If you prefer to sell 100% online:
Carvana.com
Carmax.com
Driveway.com
AlgoNation.com
If you prefer selling your car in-person:
Try leveraging tools such as KBB.com or AutoTrader.com.
Both websites will connect you with reputable dealers who will honor transparent KBB pricing.
If an online retailer is offering you a higher price than the dealer, politely ask if they can match.
Pro-tip: Remember that you should always optimize to trade-in your car, as opposed to selling, when possible.
Why?
First of all, by trading in your car, you receive credit towards your sales tax (in most US states*).
Which can be huge.
But the dealer also gets:
- Another unit to sell: thus they are more inclined to sell you a car at any cost.
- Better financing terms from the lender: which can be directly passed on to you.
And when all this happens, you get:
- A much better deal (as long as you follow my negotiation playbook).
Congrats - you’re done.