Every once in a while, a customer will bring a car in for trade that’s spotless. That’s because they just spent the weekend detailing it, thinking that it would help them get more money for it. Don’t do this. Nothing says “Desperate customer, eager to sell” like a freshly detailed car. Leave it as it is, with all the dog hair, food wrappers, and mustard stains on the seats. And say something like, “Oh, my car is a mess. I hadn’t planned on trading it in today.”
Don’t Parachute Your Trade
Finally, there’s the oldest trick in the book—and the one that almost always backfires. You go into the car dealership, pick out a car, negotiate a price, and then, when you’re done draining every last penny from the deal, you look at your salesperson innocently, as if this thought just occurred to you, and say, “You know, I wasn’t planning on trading in my car, but since it’s sitting outside in the parking lot, would you mind taking a look at it and telling me what you’d give me for it?”
In the business, that’s called “Parachuting the Trade.” And the reason people do it is because, decades ago, some idiot—excuse me, a self-proclaimed expert—started telling people to negotiate the price first, then negotiate the trade value.
It seems like a good strategy, doesn’t it? It’s not. Here’s why. If you’ve broken the dealer’s bank on the price, they have nothing left over to give you on the trade. In fact, what do you think they’re going to do? They’re going to take the opportunity you’ve given them to get back some of the money they’ve lost. They’re going to hold back on your trade. Instead of giving you what it’s really worth, they’re going to give you two or three grand less. By being dishonest with the dealership up front, all you’ve really done is hurt yourself.
The Secret to Trade-In Value
The secret to getting the most for your trade is simple but hard to do. It starts with buying smart. Find a reliable car that holds its value and pay cash for, lease, or finance it for the lowest price you can get. Put at least 20 percent down and finance it for no more than 36 or 48 months, if you can afford the payment. Never finance a vehicle for six or seven years. That almost guarantees negative equity. Don’t focus on getting the lowest payment; focus instead on paying it off as soon as you can and putting yourself in an equity position. Lastly, maintain it well. Ultimately, that’s how you’ll get the best value for your trade-in.
