Part exchange is a great way to reduce the cash value of a car you are looking at buying. You trade in your old vehicle, pay the difference to the dealer out of your savings, and drive away with a newer, better model. Well, that’s the idea, anyway.
The truth is that you can often get a worse deal with a trade in, especially if you are inexperienced at playing the game with your dealer. In this guide, we’re going to go through everything you need to know and get you up to speed with getting the best deal possible for your old car. Let’s slip into gear right away.
Research is essential
As with any major purchase in your life, you should always make sure you know what you are talking about. Without thorough research, you run the risk of being ripped off or, at worst, taken to the cleaners entirely. There’re a few things you need to look at in the initial stages.
Start with checking prices for the make and model of the car you are interested in. Don’t forget to check for the year it was built and the mileage, too. These can all have a large effect on the price you will eventually pay.
If you are looking for a brand new, never-been-driven-before car, then you will need to investigate new car sites. They are often better than manufacturer sites because they give you a more realistic idea of the price you will pay. Now you need to do the same to your own car so that you are in the best place possible to get a good deal.
Find a suitable dealer
Next, you should seek out a reputable dealer. Ask your family and friends and see if they would recommend anyone first, before using the Internet to find out reviews in your area.
Don’t be too afraid of traveling out of your comfort zone. Car prices can fluctuate wildly across the country, and if your final cost is less than the gas and the time you spend traveling from A to B, then it’s probably worth looking into.
One big tip for finding a reliable part exchange dealer is to ask them if you can speak to some of their past customers. Any reputable firm will be happy to point you in the right direction. If, however, they appear uncomfortable, then it’s a good sign that you should look elsewhere.
Haggle like you never have before
Haggling is all about reducing your ‘price to change’. This is the difference in cost between your old car and your new one. The closer in price it is, the less you will have to pay out for the new model, so have that in mind when you start your negotiations.
You will be lowballed at first, so expect to meet some resistance to your haggling technique. However, one good way of getting around this is to arrange a good price on the new car first, before offering the old on as part payment. Once they have a sniff of a sale, your dealer will be more likely to be receptive to a haggle.
Good luck, and feel free to share your experiences.