Don’t visit a dealership without thinking about how your current car looks. If it’s scratched, been parked under a tree and hasn’t been washed in months, it’s hardly going to look like an attractive trade-in deal to the dealership.
The 6 tips for negotiating the best deal at a dealership
A lot of people may find negotiating with a dealer uncomfortable or intimidating. If that’s you, don’t worry because you’re not alone. Just don’t let that stop you from trying to get the best trade-in value you can for your car. Remember that what may be an awkward conversation for you, is business as usual for the salesman. A big part part of their job is negotiating, and they expect people to haggle with them over prices.
You can keep these 6 tips in mind to help you negotiate the best trade-in value for your car from the dealership.
1. Do your research
Knowing how much your car is worth will give you power at the negotiating table. Services like the Canadian Black Book and autoTrader.ca can help you gauge your vehicle’s approximate value. You can also look at private sale prices for your make and model, but keep in mind that trade-in values are usually lower than private sales.
2. Know common tactics
Dealerships are experts when it comes to buying and selling cars, so familiarize yourself with some of the more common negotiating tactics they use. For example, don’t be surprised if the dealership claims your car won’t be easy to sell or that it’s doing you a favour by taking it off your hands — these tricks are designed to maximize the dealership’s profit, not yours.
3. Use your own negotiating skills
Don’t bring your trade-in to the table until the end. Negotiate the sale price of the new car separately to the trade-in. Once you’ve reached a reasonable purchase price for your new vehicle, tell the salesperson that you’d also like to trade in your current car and that the right price will seal the deal.
4. Shop around
Don’t be afraid to shop around for a better trade-in deal. You might be surprised just how much more you can get from a different dealership, so look elsewhere if you’re not happy with the price you’re offered.
5. Focus on the changeover price
Remember that the trade-in price for your vehicle doesn’t mean you got a good deal. Look at the changeover price for your new car – that is, the purchase price of your new car minus the trade-in price of your old car. While one dealership may offer the best trade-in price, if its price for a new car is more expensive, then it may not have the best overall deal.
6. Go at the end of the month
Dealerships are often more likely to offer a better deal when the month is dragging to an end. That’s often when they’re trying to get old cars out of the lot to make room for newer models.
