6 Ways To Get the Most Value When Trading in Your Car

If your current car is still in good condition, there’s a great chance that you can trade it in to help you lower the price on your next car purchase , limiting the amount you will need to finance.

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However, if your car is in need of some upkeep or maintenance or you’re not doing your research on things like value and timing of a trade, you might find yourself at a loss.

Lauren Fix, sector analyst and industry expert at The Car Coach and Car Smarts Brands, explained some ways to get the most value out of your car when trading it in .

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Assess the Value

Knowing the current trade-in value of your car is very important, Fix said, and it requires doing some homework and using sources such as the Kelley Blue Book (KBB), True Car and Edmunds.

“Remember, however, that this is just a benchmark; you should also be honest with yourself about repairs and your vehicle’s condition,” continued Fix. “You likely won’t get the current value as a car trade-in unless the car is in truly pristine condition.”

She also pointed out that you have to be aware that you’ll get less for your trade-in than you would if you sell your car on your own.

“Many people think they are going to get the top value, but dealers taking in the trade need a margin of profit and will offer you less than the trade-in price listed on these sites.”

Take Care of Known Mechanical Problems

The mechanical and physical conditions of your car are big drivers of value, according to Fix, so it’s best to resolve any issues that are relatively simple.

“In general, minor repairs that don’t cost much out of pocket are still likely to increase the resale value of your vehicle,” she said. “This might include small cosmetic fixes such as dents and scratches or replacing lights that are blown out.”

Of the repairs that could increase the resale value of your car, Fix suggested researching which are most cost-effective. Sites like Repair Pal can give you a good idea of what a given repair will run you.

“You should also check with the National Highway Traffic Safety Administration (NHTSA) database for any vehicle recalls affecting your car. Recalled parts can be fixed free of charge, and the extra effort may also increase your car’s resale value,” Fix said.

Keep receipts for repairs and maintenance as well. These can prove to the dealer or buyer that you cared for the vehicle.

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Maintain Your Car’s Appearance

A clean and well-maintained car is more likely to get the highest trade-in value. This may sound obvious, but many people bring cars in for trade without bothering to do a simple cleanup.

“Detail your car the way you’d stage your home — curb appeal matters,” added Fix.

Shop Around

Don’t pick the first dealership you find, or even the one you bought your car from. It’s important to shop around for trade-in potential.

“Don’t go to the dealer you plan to buy your next car from until you’ve gotten a few competitive quotes from CarMax as well as any major used car dealers in your area,” Fix recommended.

Negotiate Trade-In Value and Purchase Price Separately

Fix also warned against try to wrap your trade-in and purchase price into one conversation if you want to get the best deal. Negotiating your trade-in and purchasing separately ensures that you get the best trade-in value possible and the best price on the new vehicle you’re buying.

“Watch out for dealerships that try to combine the two transactions into one deal. They do this because there are more opportunities for a dealer to generate profits when working on two transactions at once,” she said.

It’s also a good idea to get the trade-in offer in writing separately.

“This protects you from the dealer changing or going back on the offer for any reason,” said Fix. “A formal offer is especially important if you leave the dealership to shop around further and return to the same dealer later.”

Time Your Trade-In

Trading in your car to buy another vehicle may work better at certain points of the year than others, depending on the year, make and model of your vehicle. As Fix explained it, weather conditions and other factors could also affect the offer you receive.

“Timing is everything,” she said. “All-wheel-drive SUVs would be in high demand during winter, and convertibles are best to sell in spring and summer weather.”

The first two quarters of the year can also be a good time to trade in a vehicle because Fix said buyer demand tends to be higher. Dealers need more vehicles on their lots to meet the demand and may offer a higher price for your trade-in.

Taking these small but important steps will maximize your trade-in value and allow you to get the best deal on a new car.

This article originally appeared on GOBankingRates.com : 6 Ways To Get the Most Value When Trading in Your Car