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How do I negotiate a trade-in?

Home » Automobiles » Making an offer and negotiating the price of a car » How do I negotiate a trade-in?

Often, a dealer will give you a better overall price if you pay outright, than if you trade in. However, a trade-in can be a source of negotiation flexibility if you are similarly knowledgeable about your trade-in. Again, you should investigate what your trade-in is worth. They will offer you a low amount for it, and, based on your research, you must be ready to say, "I couldn't take less than X for it." Be patient, and go through the process. An additional avenue for declaring what your car is worth is to call your insurance company. You want to ask them what your reimbursement would be if your car were totaled. This is a pretty good approximation of its value. You also need to pay close attention to how the dealership employees respond to your car. If they ask to take it for a test drive, and they are gone for a while, they may be taking it to another dealership where they know there is a buyer, and getting an immediate offer from that dealership on your car. Finally, make sure that you know whether you or the dealer is paying to get your trade-in fixed up to re-sell. Typically, you should make sure that there are no additional charges to you on your trade-in.

Expect to improve over time at negotiating the price of a car. As one dealer once said to another about an increased price he charged to the other, "That's the price I charge you for your car-trading lessons!" If this is your first time negotiating, and you have a more experienced friend or relative that you can rely on, consider taking him or her with you to lead the way.

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L. Donald Curry lives in Delbarton, WV, and has decades of experience buying and selling cars at a dealership. This article distills his experience into some easy guidelines.

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