Don't Trade-In a Car Until You Watch THIS Video | How to Negotiate Your Trade-In

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Today Laura shows you how you can trade in your car for the most money possible.

[JK-ldcd]

when you hear "great news', you know youre getting screwed

[smokeyj]

This took 10 minutes here. In reality this process takes like 2 hours. They always say let me run this by my manager, and takes them forever.

[stevewardlaw]

One other trick to get them to raise an offer I have seen if you're buying a (New to You!) Used Car. Ask them to explain their Blue/Black Book methodology for how they appraised/valued your vehicle. Then look up what the exact same method would say the car they're trying to sell you is worth. This will often be less by *thousands* and really make them look greedy at the negotiating trough. I've had them move over 15-20% on this tactic alone before, or realized the car I thought I wanted was way overpriced and just walked out.

[simplyeasydiy]

That is never how a conversation goes for me. They would low ball me with the $11, 000 offer. I tell them I think it's too low. They ask me what I think my car is worth. If I give them the$15, 000 number, they then think we can meet in the middle by way of haggling for the next hour. If I refuse to budge then they refuse to budge and it becomes an exercise in futility. So I just get up to leave after I get the first low ball offer. Sometimes that springs them into action with managers and serious talks around my $15000 and other times they just let me go. Either way is fine with me. The trick I think is to actually be fine with either outcome.

[willhernandeziam]

Dealerships in my area would tell me well go ahead and go online or sell it on your own. They have too much inventory they can't sell.

[estd]

Every time I have had a trade in I go get a hard offer from one of the places that will buy your car from you. Up front I will take no less than that offer minus the tax savings I get for the trade in. The advice to treat it as two separate transaction is absolute. I also pull out my HP-12C financial calculator when we start to talk numbers.

[christang]

Question: when to bring up the trade-in? When negotiating with the sales manager or the finance manager? I assume it's the sales manager, right?

[Fred-]

My state (Arkansas) rebates the sales tax if you sell your old car within 60 days before or after you buy the new car. Can be sold to a dealer or to a private party.

[lusrodriguez]

dealers must really hate you guys but we love u guys at this end of the table thank you

[anthonylozano]

yeah... I wished it worked out this well but it usually doesnt. Never trade in with a deatlership they will low ball you and at best try to add $500 to $1000 on top of that low ball price to get you to sell that car to them. Just ended up selling my car to a private seller and made much more doing so

[davearchbell]

I recently told them I need to add delivery to my trade in price as they charge me for delivery on the new vehicle 😂😂

[scottwarner]

Laura almost had Ray sweating & it was only make believe. Well done guys.

[normankujawski]

In California there is no tax savings for a trade in because you are taxed on MSRP regardles of trade in or discount.

[GusClerici]

Excellent advice and example on how to negotiate your trade-in
It took me back to my old days when I used to do Role playing with my sales team and it was always kind of awkward for them, don't know why
I guess not everybody was into acting

[jeffhenjes]

Figure out the cost of the new car first, what is going to be paid. Then worry about a trade-in. Know what you want to pay either in cash or finance first. If you can't make the sale and trade work inside those numbers, lower your expectations and find another vehicle that works. Maybe the same vehicle in a lower trim level.

[coachdelgado]

You forgot about the part where they say brb and leave you waiting for 20-30 min and another guy tries to explain how they can’t go much in value due to condition and then you go back and fourth and then they come back 20 min later again and then say the best they can do is this and then you fill obligated to take the offer because you been there way to long

[dennisd]

Thank you for the info on the tax savings. I didn't realize that it reduces the NET on the new car when you trade in, so that essentially lowers the taxes on the new car. Here in CT, that can be significant because the tax rate on a car $50K or above is 7.75% whereas the tax on a car below $50K is 6.35%. If you're buying a $55K car, having a trade-in more than $5K pushes you into the lower bracket, saving potentially $140 for every $10K of the car. On the downside, in CT we pay a $100 trade-in fee to the state. But I think that is regardless of who you trade it in to, so dealer or CarMax you still have to pay it from what I understand.

[MRDDev]

What I Did for my trade in: Went to several shops, appraised my vehicle. Then took the highest offer to the dealership and ask "can you do better?". I never brought in that I wanted to trade my car just showed them the offer and the gave me 1k extra over it.

[myvalium]

Great illustration of the trade negotiation process. I’ve found that the dealer will, at best give you auction wholesale value at the time less the calculated tax savings. They shouldn’t profit from the tax savings, but they know it’s easier for the customer to “break even” rather than go through the hassle of selling independently.

[jimmysjohn]

Another trick when negotiations fail and a deal can't be reached is you ask them where the next closest dealership is. Never tell them your name at the start or mid deal but only do it once you're happy with the negotiations.