How to Shop Your Used Car to Dealers
Every time someone trades-in a vehicle, they are essentially selling their car to a dealership.
Don't ever think for a second that a dealership is doing you a favor by buying your trade-in. This is a huge profit center for them, and whether you're buying a car or not, dealers are always hungry and willing to buy a good used car.
If your current car has less than 80,000 miles and is less than 5 years old, most dealers will be ecstatic to buy it, knowing they can make hundreds or even thousands when they sell it.
Here's what you need to do to get dealers to compete and offer you their best price for your trade-in:
Step 1: Prepare Your CarMake sure your car is mechanically sound and cleaned inside and out before you begin this process. Ideally, you'll want to spend no more than a week preparing and shopping your used car before you actually purchase your new one. A dealer will quote you a price for your used car, but if you wait too long, the offer may not be valid anymore.
Step 2: Contact Multiple DealershipsCall several dealerships in your area that sell the same brand of car you own, ask to speak to the person in charge of buying used cars.
Use the following script:
"Hi, I own a very clean [YEAR, MAKE, MODEL] with [# of MILES]. I'm buying a new car to replace it and I'd like to know if you're interested in taking a look at it."
In most cases, the used car manager will ask you to come to the dealership so he can have a look. If not, you just saved yourself a trip to that dealer.
Step 3: Negotiate and CompareAfter you've called at least 2 or 3 dealerships, start visiting each one. When you get to the dealership, tell the used car manager that you're shopping the car to a few dealerships and you'd like to know the best price he can offer you.
Be sure to read my article on How to Negotiate Your Trade-in for tips on getting the best price.
Step 4: Finalize
After you negotiate price with all the dealers, you'll know the highest price you can get for your car, but you're not done yet. Most states offer a tax credit on your trade-in when you buy a new car, so it makes sense to try to sell your used car at the same dealership you buy from.
You may not get a better offer from that dealer, but you can show them the best offer you got from the other dealer and ask them to match it. In a worst case scenario, they know they can just turn around and sell it to the other dealer for the specified price so they won't be losing money.
Even if the dealer can't match the price, they will try to make it work out so you still end up with a better deal through the use of the tax credit. If for some reason they can't, just sell your car to the dealer that offered you the best price.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid