Want or looking for a new car? Then you’ve probably asked yourself what your current vehicle is worth and wondered how much you would get for it. Trading in a car at a dealership is the easiest and most popular way to sell a vehicle, but will you get a good price?
Understanding the different terms
- Retail – This is the price of the car when someone buys it from a dealership. The selling price is the trade-in price plus the dealer’s mark-up. If you sell privately, you will get the retail price.
- Trade-in – This is the price that the dealer will pay you for the car, which will go towards settling any outstanding finance or you will receive it in cash towards another vehicle.
- Book value – Dealerships may mention ‘book value’, which is the industry-accepted valuation book on which all dealerships base their prices.
Working out the value
- Do research – Take note that special items, such as leather seats, an expensive infotainment system and mag wheels will always increase the price of the vehicle.
- Get a car value report – This will tell you if a car you want to buy is either stolen or has been involved in an accident.
- Contact or visit a few dealerships to check what the average price is – You don’t have to sell your vehicle at the same dealership where you will be buying a new car. But in general, you will get more money if you sell your Toyota to a Toyota dealership, for example.
Making your car attractive
- Spend a little money and have all scratches and dents (hail damage, etc.) repaired. Dealerships will use these as excuses to offer you less.
- Ensure your vehicle is in impeccable condition.