Trading in a car for monetary credit towards your new vehicle is a great way to help lower the cost of a new car. There are however a number of things you should be aware of if you make the decision to trade in so that you are not coerced into accepting an unfair offer.

If you are planning on buying a new vehicle from a dealership and using your old car as a trade in to offset some of the costs, always be aware of what your car is potentially worth before attempting to negotiate trade in prices with a salesperson. Use resources such as the Kelley Blue Book and the internet to gather information about not only the actual value of your used car but also get an idea of what dealerships are offering for this type of car.

No two dealers will give you the exact same trade in price for your used vehicle but they will usually be in and around the same range, if they are playing fair. If you really want to have an edge when negotiating with a dealer... know what other dealers are offering. Visit several dealers with your used vehicle, get their opinions and find out what they would offer you for the car if you traded with them. Once you have visited several dealers, take the offers they gave you and average them to find a goal price. This number will come in handy when you start negotiating because you can let your dealer know what you can get for the car else where. It also subtly lets the dealer know that you have done the research and you will not accept a ridiculous offer.

Before attempting to trade in your vehicle, take a stroll around the lot and take a mental inventory of the other used cars they have available for sale. The price that you will be offered for your trade in will almost always directly relate to how easily the dealer feels they can sell your vehicle. They will not only be looking at the make, model and condition of your car, they will also be looking to see what your car can add to the over all mixture of inventory on their lot. If by chance there are numerous cars on the lot identical to yours, expect your trade in price to be slightly lower due to the fact that that car isn’t moving well. If a dealer thinks they will have a hard time reselling the car, offering you a high trade in price puts them in a position of risk, so be prepared for that. If a dealer refuses to make a reasonable offer for this reason, consider taking your trade in elsewhere unless the dealer is offering you an outstanding offer on your new car regardless of the trade in. If that’s the case you may want to look into selling your used car privately or through an auction house.

Trading in a car to knock down the cost of your new car is a great way to lower costs but it also has its downsides. Make sure you do the research on the value of your car before negotiating with a dealer on trade in values to make sure you are getting the best price on your used vehicle.