Getting the Most Money for Your Trade-In

The process of buying a new car has numerous moving parts. For many shoppers, a major consideration is what to do with the used car they currently drive.

• Sell it to a dealer using a Kelley Blue Book Instant Cash Offer.
• Sell it to another person in a private sale.
• Trade it in toward the down payment on a new car.

No matter which route you take, it’s in your best financial interest to maximize your car’s value. We’ve put together a few trade-in tips to help you get the most for your current ride when buying a new car.

1. Wash It

When you sell a car, you can often increase what you’ll get by simply washing it. The same rule applies to trade-ins. Take the time — or spend a little money — to clean it up before trading. Vacuum the interior, wash the wheels, and apply tire shine. The vehicle will get a comprehensive detail before it’s sold again, but showing up with a clean, presentable car can help you get the benefit of the doubt when the dealership evaluates the trade-in value.

2. But Don’t Clean It Out

It’s not necessarily the best idea to arrive at a dealer with your trade-in totally cleared of every paper and personal item. The dealer will take your trade-in for a test drive. If it’s empty, they might gain an edge in negotiations, as it suggests that you’re willing to part with your old car and purchase a new one. Our advice: Even if you want to buy right away, don’t show that to dealers. Make sure your trade-in still has a few personal items inside so you can credibly say you’re still deciding.

3. Fix Any Dents

Trade-in evaluators at the dealership expect your used car to have a few minor dings and scratches. Your trade-in value shouldn’t be significantly affected by them. But, if some of those dings aren’t minor, or there are a lot of them, then they can affect the trade-in value. The same goes for noticeable scratches. Having a dent repaired is often less expensive than you might think. Companies specializing in paintless dent repair can fix a small dent for about $200 or less. With the right tools and materials, you might be able to touch up some nicks and minor scratches in the paint.

4. Fix Small Problems

Although you may have learned to live with a window that doesn’t roll down or a headliner that sags, a dealer can’t. That means such small issues could affect trade-in value, since dealers will have to pay to fix them before putting your car on the sales lot. Our advice: Use a small budget and address the most obvious repairs on your trade-in. A new key fob battery, for instance, may go a long way in convincing a dealer that your car has been well maintained.

5. Fix Wheel Curb Rash

It’s happened to everyone: You pull up to a curb and scrape the wheels on the edge. The unsightly result is called “curb rash.” Repair costs vary depending on the wheel material and the severity of the damage. A typical alloy wheel can be repaired for $200 or less. Many dealers won’t sell a car with such curb rash, meaning they’ll have to pay to fix it. If they put it on the lot with scuffed wheels, they’ll get a lower sales price. Either way, wheel damage is an easy negotiation card for the dealer. If you address curb rash before trading in your car, you may see an increase in value.

6. Consider Your Tires

While we generally don’t suggest buying new tires before trading in your vehicle, it can be necessary in certain cases. If the tread-wear indicators are showing, for example, the dealer can use this as a negotiating point to offer a lower price. If this is the case with your car, we suggest buying a set of inexpensive new tires before trading it in. It may be worth it when it comes time to negotiate the trade-in price of your vehicle.

7. Show Service Records

Service records give the dealership (and private buyers) proof of routine maintenance and repairs and show when key services were done, reducing their incentive to discount your trade-in for unknowns. Sure, vehicle history reports from AutoCheck or Carfax show what work was done on a car, but the reports only show service information that was submitted to those providers. A neat folder of receipts signals careful ownership and helps justify a higher appraisal. If you don’t have records, get a pre-trade inspection and bring substitute proof like parts receipts.

Bottom Line

Do not neglect the value of your trade-in when you’re buying another vehicle at a dealership. Follow our tips to help ensure you get top dollar for your old car.

Editor’s Note: We have updated this article since its initial publication.