Steps to Buying a Car Part 3 – Your Used Car Trade-In
In this the third of the steps to buying a car we will cover the issue of a Used Car Trade-in. If you do not have a trade in vehicle you can skip this step and by going to the bottom of the page and move to Car Buying Step #4.
All of the steps to buying a car are important, but the car buying step of doing used car trade-in research is often overlooked by many car buyers. Most people are excited about buying their new car and fail to do the necessary homework on their trade-in value before they get to the car dealer. Underestimating your trade-in is one of the easiest car dealer scams and one of the most common ways for the car dealer to make extra money.
Steps to Buying a Car – Trade-In Value
In this steps to buying a car gather your used car trade-in information. Such as the year, make, model, trim level and any factory installed accessories. Then Click here..Yahoo! Autos..Now and then go to the used car section. Search for cars similar to yours in your general area. When you find one that is very close to yours click on the car and you will see several photos. Towards the top you will see a tab that says Kelly Blue Book, click there and get the realistic values for your car. They will give the retail and private party values. Private party is when you buy or sell a used car to someone individually. Use that number to determine the value of your used car trade-in by reducing it by approximately 10 to 20 percent for the trade value depending on the condition.
I always use Yahoo! Autos to do my research because it is realistic and actually provides you with numbers that reflect the current market conditions. I have found through trial and error plus the inside the car dealer experience that Yahoo! Autos shows you the numbers that are actually the numbers that others car dealers are using to determine trade-in values. I have tried using several other sources, but I prefer Yahoo! Autos when I am doing trade-in research and the best part is that it’s free.
Steps to Buying a Car – Car Dealer View
When you are trading in a car to the car dealer the sales manager or used car manager that determines the value of your trade-in is looking at your car as if he was buying it himself. The first question they ask themselves is how much do I have to spend to sell this car on the lot. They look it over for dents, leaks, need repairs and anything that would require them to spend money to make it lot ready for sale to the public. If your trade-in is not worth repairing for sale on the lot, they determine the value by estimating how much they can sell it for a the local auto auction.
Should the dealer decide that your car is worth repairing and selling on the lot they will estimate the amount of repairs, add in the desired profit and then deduct that from what they believe the car will sell for on their car lot. The difference will be the amount they will allow for your used car trade-in.
The Car Buying Steps – Trade-In Decision
The ultimate decision to trade-in your car is up to you. You can sell your used car trade-in to a private party by putting a for sale sign in the window or advertise it in the classified section of your local newspaper. It is ultimately your choice and there are many variables to consider when you are trying to decide if you are going to trade-in your car with the car dealer or sell it on your own. Some people are convinced that they must sell their trade-in on their own to be able to avoid car dealer tricks and car dealer scams, but doing your homework can make the big difference. Follow these car buying steps and you will get a good deal.
This step of buying a car has another point to consider. In many states the amount that the car dealer gives you for your trade-in can reduce the amount of sales tax you will be charged. If your state allows that to be the case the dealer will reduce the amount of the new car that you are buying and then the sales tax is calculated on the difference. If you have a trade-in like the car pictured below it will not have much impact. Although if you were trading in a 2 or 3 year old car that tax savings can be significant.
Gather trade-in facts, figures and printouts and lets move on the next steps for buying a car. Put all the information that you have gathered so far into a file folder so you will be ready when we get to the car dealer and buy your new car.
Steps to Buying a Car – Part 4
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