How to Trade in a Car for a New or Used Honda
One of the benefits of trading in your car is the tax advantage you get. You don’t enjoy this benefit if you sell your old car yourself. Considering the huge savings you make, you may want to know how to trade in a car.
Another advantage is that the process takes a shorter time. All you have to do is drive into a dealership, make a deal, and drive away in the Honda you want. Unfortunately, it can be a challenge to find a dealer who’ll give you the full value of your car.
With information on how to trade in a car, you can maximize your trade-in’s value. By all costs, you should avoid trading in at a lower price than the actual value.
Read on to learn more!
Preparing for the Process
Before you get into a dealership to trade in your car, check that it’s in the right condition. Get all your paperwork ready. It’s imperative to prove that you’ve completed all the maintenance services at the required intervals.
Provide receipts on items like brakes and tires if you’re replaced them recently. If the car has ever been in an accident, have all the repair paperwork ready. The dealer may not ask for the papers, but if they do, you’ll get a better deal.
As you prepare the documents, clean up the car. The dealers will factor in the cost of refurbishments, whether you’ve done it or not.
For any pending repairs, you may want the dealer to handle that expense. With them, the process will be cheaper because the work will be performed in their shop.
Lastly, as you prepare to go to the dealership, know the value of your car. Without knowing this, you won’t have a way of knowing whether you’re getting a fair deal or not. Compare various offers before you settle on the final deal.
At the Dealership
Once you get to the dealership and tell them you’re trading your car, someone from the used car department will look over it. They’ll test drive it and prepare an offer. Most likely, they’ll run a vehicle history report.
Be prepared to answer any questions.
Since this is their specialization, they’ve got the skills to identify issues that may have escaped your attention. In case of a mechanical problem, it’s advisable to have a trusted mechanic deal with it before you go to the dealer.
Avoid playing tricks to hide your car flaws from the appraiser. This is most likely to backfire on you. Should an appraiser suspect you’re hiding something, they’ll pull out of the deal or give you a low-ball offer.
Some of the things the dealer will be checking are:
- The age of your vehicle
- Mileage (the more the mileage, the lower the car’s value)
- Ownership (sole ownership attracts a higher value)
- Vehicle condition
- Tires and whether they’re matching
The mechanical condition of your car is also an important consideration. If, after listening to how it’s running, they suspect a problem, they’ll lower the value. A recent vehicle inspection report will assure them that no costly repairs await them.
Red Flags to Note
Take note of how you’re treated during this phase of the process at the dealership. It’ll tell you a lot about the company and what you can expect from them. Genuine dealers will strive to come up with a fair offer, but others will play around with your trade-in.
Some of the tactics they’ll use include making you doubt the value of your car. Some dealers will walk around the car, pointing out every dent, flaw, or scratch. They do this in a manner likely to suggest that they know something’s wrong with your vehicle.
Don’t let their tactics get to you. You’ve got the right to leave the shop and check elsewhere. Also, be wary of the “missing keys syndrome” where your keys go missing after the test drive. This is a delay tactic that serves to discourage you from walking away.
Negotiating the Best Deal
One of the critical components of how to trade in a car is to know how to negotiate a good deal. After getting quotes from several dealers, it’s time to choose an offer. At this point, you need to keep the trade-in and purchase negotiations separate.
Ensure the trade-in and sale price values are in line with pricing guides. The trade-in price is basically a credit deducted from the cost of the new or used Honda you wish to get. As such, look for the lowest overall price after you’ve made this calculation.
Another thing to consider is your car’s private-party price. If it’s much higher than the trade-in price, you may want to sell your car yourself.
Closing the Deal
The process of the trade-in is easy and quick when you’re the sole owner of the car. Once the trade-in value is deducted from the new car price, you’ll pay the remaining amount for the new vehicle. This you can do in cash or with an auto loan.
Another scenario is if you’re downsizing and the value of your trade-in is higher than that of the new car. In this case, the dealership will write you a check for the balance. Ensure you get the exact amount they owe you in writing.
Once the figures are well in place, and everything is in writing, you’ll drive away your new or used Honda, a happy driver.
How to Trade in a Car – Final Thoughts
If you’re eyeing a new or used car in place of your current one, consider trading-in. It saves you time and, sometimes, money.
Before you settle for this option, you must learn how to trade in a car. The process may not be as easy as you think, considering traders may try to offer you the lowest value. Get as many different quotes as you can.
When you are finally satisfied with a quote, ensure your car is in good condition. The papers associated with it must also be ready. By the time you’re signing the deal, ensure you’re not giving your car away at a throw-away price.
If you have any question, be sure to reach out to our team.