When you take your car into the dealership to trade it in for a new one, nothing is more disappointing than hearing that your trade-in value is not enough to cover the car you had in mind, or any for that matter. How do car dealerships determine trade-in value? Why did they offer you so little for your trade-in? Is their offer fair? Is it possible to increase your car’s trade-in price? These are all important questions to explore to better avoid falling victim to a low-ball offer from the dealer.
Continue reading to learn more about car dealership trade-in factors, including the scale used to generate offers.
Dealership Trade-In Values Will Always Be Less Than a Private Sale
It is important to understand that you will always make less from a dealership trade-in than you would by selling your vehicle to a private buyer. Those who prefer dealer trade-ins over private car sales are typically well-off, economically, and do not mind the loss they take for the sake of convenience. Others might prefer this route if they have limited time to make the sale or if they are temporarily located for work.
How Car Dealers Calculate Trade-In Pricing
There are many factors that dealerships rely on to generate a trade-in price for a vehicle. Of all the various factors, the top three factors that will have the most impact are: 1) the current demand for the particular make and model car; 2) the current condition of the car, including the mileage; and 3) the extent of needed repairs or replacements.
With these factors in mind, you can understand what you can do to increase your car’s trade-in value. Something as simple as washing and detailing your vehicle can get you a better offer. You can also make any small repairs or replacements, even if it’s just new windshield wipers and floor mats or removing bumper stickers.
Lastly, be sure to look up your make and model’s current market value using a trusted resource like Kelly Blue Book (KBB) or VehicleHistory.com. Use these portals to compare your findings to the dealer’s offer. This knowledge will protect you from being taken advantage of by a large, commercial dealership.
Alternative to Dealer Trade-Ins
You can choose to sell your car to a trusted and experienced Indianapolis auto salvage lot that would pay you for the scrap value of your vehicle. Not only do they retain the proper resources and equipment to generate an accurate offer, but they pay cash on the spot and provide free car pick-up.
Would you like an easy and profitable way to sell a car in Indy? Contact GC’s Junk Cars at 317-608-2188 to get started on the car selling process, today! Our Indianapolis IN junk car buyers pay cash on the spot for all vehicles, no matter the condition! Plus, we offer free junk car removal! No hidden fees, ever!