Trading in
Your Truck? By Keith Burton – TruckTestDigest.com Dealers love trade-ins. A trade-in is like icing on the cake for most dealers. Here’s what you should do. When you are talking to your salesman and his higher-ups, don't admit you have a trade-in until AFTER you negotiate the price of the vehicle you're buying. Here’s why. The value of most factory rebates or low APR financing can easily disappear if you talk about your trade-in too early in the negotiations. That's because if they know you have a trade-in, the salesman will likely tell you they plan to give you a thousand dollars for your truck, when actually they were prepared to give a thousand dollars or more off the list price as part of normal bargaining, even to a customer who had no trade-in. Hey, do you like to see the value you thought you would get for your truck vanish? That is how it is done. Getting the Most for Your Vehicle Regarding your trade-in, the first step is to make sure your truck or SUV looks like one you would want to buy. Therefore, unless you have a lot of experience in cleaning up your truck or what is called detailing, spend the $100 to $150 for an appointment with a professional detailer. After all, any vehicle worth $1000 or more will benefit from a spruce-up. But if that is too much for you to spend, at least take it to a carwash that features interior cleaning. You would be amazed that for less than $40 your truck may look good enough to increase its trade-in value by hundreds of dollars at the dealer. The thinking behind all this cleaning is to give the dealer's used-vehicle appraiser as little reason as possible to deduct for a dirty, mistreated vehicle. Also, remove all personal papers and items from the interior and glove box, but leave maintenance receipts, warranty contracts, and the owner's manuals in the glove box. In addition, be sure your detailer cleans and vacuums your trunk and if you still have them, include your jack and spare tire. But if you have jumper cables in your trunk, take them out. You don’t want to give the appraiser the wrong impression. If you have a mechanic, have him give your truck a once-over to fix squealing belts and minor problems that can be repaired without a big expense. But don’t do any major repairs. Save your money for your new vehicle. When the dealers take in a trade, the used-vehicle manager determines the condition, age, and mileage of the vehicle and estimates how much the truck would bring at a wholesale auction. He then deducts his expenses and that adjusted amount becomes what your trade-in is worth. That amount will then be deducted from the price you've negotiated on the new vehicle, which then becomes your final price. Keep in mind that the wholesale value for your trade-in will be significantly lower than you might get by selling your truck to a private party. Selling it Yourself If you do decide to sell your truck or SUV yourself, put a For Sale sign in the window and buy a week-long in your local newspaper's classified section. Be sure to include the year, make, and model. Also include information on the mileage if it is low, but not if the mileage is high. Mention the number of cylinders in the engine, and whether it has a standard or automatic transmission. Keep the ad short, but don't forget to mention if it has four wheel drive, AC, a CD-player, leather interior, and power accessories. Also, always end the classified ad with the words, "IN EXCELLENT CONDITION” as that will encourage people to respond. It is also a good idea to include your first name. And while the following will seem ridiculous, don’t forget your phone number. Additional Tips § Know your credit score and history before negotiating finance terms. § Don't focus on monthly payments, but on the entire amount of a loan over time. § Comparison shop among banks and finance companies for best terms. Try your own bank or credit union for their best finance deal. § Before entering a dealership, decide what features you want in a truck or SUV. Avoid being swayed by option packages that may increase a vehicle's cost. § Don't narrow your choice to just one vehicle. Choose three or four that suit your needs and budget, keeping focused on the best deal. § Call local Better Business Bureau and ask for a reliability report on a dealership to see whether complaints have been filed by other customers. § Know that the spring and summer are the busiest truck buying seasons. Consider waiting until December or January to get a better deal. § Weigh the value of add-on products, such as rustproofing and fabric protection packages, before agreeing to buy them. § Read and understand the contract thoroughly before signing. Under federal law, dealers may not: § Hide how much it will cost to borrow money. The disclosure allows borrowers to compare terms of credit offered by different lenders. § Conceal the annual fee charged for borrowing money, which is expressed as the annual percentage rate on a loan. § Pull your credit report without your authorization. § Discriminate based on race, gender, marital status or age by charging different prices for the same products or services.
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