If you’re looking at used cars in Calgary for the perfect new-to-you car, you’re probably motivated to maximize your car-shopping dollar. One way to stretch your car buying dollars is to maximize the value of your trade-in. The more money that used car dealerships in Calgary will offer to credit you for your trade-in, the better position you’ll be in. Here is a five-step guide to maximizing the value of your trade-in.
Step One — Do you know what your trade-in is worth?
There’s a lot of homework to do before you start shopping, too specifically for used cars in Calgary. One homework task that can really pay off is to try and determine the value of your trade-in before you start visiting and negotiating with used car dealerships. Ideally, you should determine that value from a professional and neutral source, as opposed to a dealer with a financial interest in the transaction.
Keep in mind that the value of a used car varies from car to car — even cars of the same model — based on a lot of factors. Some of the key factors are: the age of the vehicle, mileage on the vehicle, and condition of the vehicle (including any damage or major repairs).
You can obtain an estimated value of our trade-in by consulting a trusted dealership or mechanic with experience in selling cars. But one of the best and most efficient ways of getting the information is to take advantage of online tools such as Canadian Black Book or Kelley Blue Book (American dollars) or the CARFAX Canada Value Range estimator.
Step Two — Confirm any outstanding balance on your trade-in
If you own your current car outright, you can skip this step. On the other hand, if you financed your current car and are still making payments on it, you need to find out exactly how much you still owe. If you’re planning to finance your next used car with the same company, you may be able to roll that balance into your new deal — if that’d still be a good deal — but, one way or the other, the financing company is going to have to be paid for your current car. You’ve got to know just how much we’re talking about.
Step Three — Get your car ready
Before taking your trade-in to the used car dealerships in Calgary that you’re considering purchasing a used car from, get your trade-in into the best condition possible. This is the moment to try and buff out minor blemishes and scratches, detail away any interior grime, remove all trash and bumper stickers, etc. The goal is simple. The dealer is going to look to sell your used car. The better your car looks, the more they’ll anticipate being able to get for it, and the more they’ll be likely to offer you on your trade-in.
Step Four — Shop around
Just like you should shop around for your next car, you should also shop around for the trade-in value of your current car. Since used car dealerships in Calgary generally have access to the same information to determine the value of a trade-in, the offers might not vary much from dealer to dealer. But speak to several dealers who sell used cars in Calgary to see what they might offer… if you find a match between a good trade-in offer and a decent inventory of cars you’re interested in, that might be a decent place to make a deal.
Step Five — Negotiate
With your trade-in-related homework done and your next car-related homework done, use all of that information to negotiate on two fronts — how much you’re ready to pay for your next car and how much the dealer is willing to credit for your current car. Both those numbers will affect the other, but keep in mind the bottom line that you’re looking to achieve — the lowest possible out of pocket or financing cost at the end of the day. To avoid comparing apples to oranges, ask dealerships you’re negotiating with to give you final all-in figures taking into account the trade-in value and purchase price. Then, shop around between dealerships and feel comfortable counter offers you receive with ones of your own.
Dealers that sell used cars in Calgary have a lot of experience in valuing trade-ins and are highly motivated to establish good relationships with customers. After all, dealers want to sell you your next car, too. That may mean they may have flexibility when it comes to valuing your trade-in. Use this checklist to make sure you get the best possible value for your trade-in that you can.