When it comes to buying a new car, trading on your old one can be a quick, simple and stress-free way to sell your previous one and take some money off the new one. However, the trade-in value of any vehicle can be notoriously low compared to private sales and the smallest things can make a huge difference to the final price a dealership provides. For those looking to trade in their vehicles in the near future, there are thankfully a few things you can do to really maximise the value you’re likely to get, from fixing any known repairs to shopping around for the best prices – find out more, below.
How Trade-In Value Is Determined
To really understand how to increase the trade-in value of your car, first understanding what factors play into the final quote can really help you maximise the amount you get. Certain factors, such as the car’s make, model and year can’t be changed but the condition the car is in can make a huge difference. The five key factors that dealers will consider when calculating trade-in value include:
- Year – While some older cars can still fetch a fair price in trade-in depending on their popularity, you’re more likely to get a higher price for a newer vehicle, particularly if the dealer expects it to sell fast as a result.
- Make and Model – The make of your car can really determine how much you’re likely to get, but it’s the model that will truly make a difference. Some models sell better than others, even within the same manufacturer, simply due to their popularity or expected value.
- Desireability/Demand – Following on from the above, some vehicles are just more popular than others and in these cases, are likely to fetch a higher trade-in value.
- Condition – The condition of the interior and exterior will play a part in the overall value of the vehicle. Vehicles in better condition will fetch a higher value.
- Mileage – Even if your vehicle is in perfect condition, if the mileage is high, this will affect the overall value of the car. Consumers are less likely to opt for vehicles with high mileage, so dealerships are less likely to offer high prices for cars with high odometer readings.
How Do I Improve Trade-In Value?
While you can’t change the make, model or age of your vehicle, there are a few things to do to improve the value and make sure that you’re getting the best deal possible:
- Do Your Own Research First
If you want to be certain that you’re getting the best deal possible for your car, you first need to know how much it’s likely to be worth in the first place. You can either get trade-in quotes from various companies going off of the current condition of your car, or look online for how much your vehicle’s make and model is going for privately. You’re likely to get less than trade-in values listed online and private sales will always get you a higher price, but having a ballpark figure can help you approach dealers with a clearer idea of what to expect.
- Fix Any Known Problems
If you’re looking to get the most out of your old vehicle, you might need to take a trip to the mechanic first. From engine repairs to bodywork fixes – Even something as simple as a stuttering windscreen wiper could knock some value off if discovered, so it’s important to make sure that a specialist fixes any known problems that your vehicle has before you go to trade-in.
- Have A Mechanic Check For Unknown Problems
Similarly, having a mechanic do a full service of your vehicle pre-trade-in can not only source out any additional problems that might need fixing but will provide you with an up to date service history that dealerships may appreciate as a selling point. You can get in touch with our team to book your service appointment and get your existing vehicle into top condition.
- Shop Around
While the dealership you’re buying your new car from might be offering you an easy trade-in for money off of the new vehicle, there is a high chance that an alternative dealer or trade-in specialist will offer a higher price. This doesn’t mean that you have to go through the hassle of another dealership, however – if you can collect a number of quotes for various trade-in values and bring this to your new car’s dealer, you may be able to negotiate up to the higher price.
- Give Your Vehicle Some TLC
While a mechanic can help with issues under the hood, it’s important that you take the time to get your car looking good too. The interior and exterior of your vehicle are what buyers will see first, so if you get it looking good as new and fix any nicks, scratches or dents, you may find that the value you’re offered is far higher. Even a small chip in the paint can have a significant impact on the overall value of the car, so it’s important to be thorough.
- Time Your Trade-In Smartly
Depending on the type of vehicle that you’re looking to trade in, there may be certain times of year in which your car could fetch a higher trade-in value. Convertibles, for example, are typically in higher demand during the Summer months and for that reason, dealerships may be willing to give you a higher trade-in value in Spring and the start of Summer if they suspect the vehicle to be bought quickly. Similarly, SUVs and similar may be in higher demand during the winter months due to better handling in bad or adverse weather conditions.
- Negotiate The New Vehicle And Trade-In Price Seperately
Dealerships want to make money, and one way they can do this is by offering you a higher trade-in value but inflating the price of the new vehicle as a result. For this reason, your best course of action is to negotiate these prices separately. You should negotiate the new vehicle’s price first where possible, agreeing to the deal in writing before approaching the trade-in vehicle as a separate transaction. This way, you’re more likely to get the best price for both the new and old vehicles without one playing off of the other.
For more information about checking your existing vehicle for repairs or servicing, feel free to get in touch with our team, or book your appointment, today.