How do you negotiate with trade-ins?

1 Know your car's value

Before you walk into a dealership, do some research on how much your car is worth in the current market. You can use online tools like Kelley Blue Book or Edmunds to get an estimate based on the make, model, year, mileage, condition, and features of your car. You can also check local listings and compare prices of similar vehicles. This will give you a realistic range of what you can expect to get for your trade-in and help you negotiate with confidence.

2 Shop around

Don't settle for the first offer you get for your trade-in. Different dealerships may have different policies, incentives, and inventory needs that affect how much they are willing to pay for your car. You can also try selling your car privately or to a third-party buyer, such as CarMax or Carvana, to see if you can get a better price than the dealer. However, keep in mind that selling your car yourself may take more time, effort, and paperwork than trading it in.

3 Negotiate separately

One of the most important tips for negotiating with trade-ins is to treat the trade-in and the purchase as two separate transactions. Don't let the dealer combine them into one deal or use the trade-in as a leverage to lower the price of the new or used car. This can make it harder for you to compare the true value of each offer and spot any hidden fees or charges. Instead, negotiate the best price for the car you want to buy first, then discuss the trade-in value separately.

4 Be flexible

While you should have a clear idea of what your car is worth and what you want to pay for the new or used car, you should also be willing to compromise and adjust your expectations based on the situation. For example, you may have to accept a lower trade-in value if your car is in high supply or low demand, or if the dealer has to make costly repairs or upgrades. On the other hand, you may be able to get a higher trade-in value if your car is in high demand or low supply, or if the dealer has a special promotion or incentive. The key is to find a balance between what you want and what the market offers.

5 Check the paperwork

Before you finalize the deal, make sure you review the paperwork carefully and verify that everything is correct and transparent. Look for the agreed-upon price of the new or used car, the trade-in value of your car, the taxes, fees, and charges, and the terms and conditions of the financing, warranty, and insurance. If you see any discrepancies, errors, or hidden costs, don't hesitate to ask questions and request changes. Don't sign anything until you are satisfied and comfortable with the deal.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?