The dealers use a guide to determine the trade in value of used cars, namely, the TransUnion Auto Dealer's Guide, which is used to determine the book value.
So, first and foremost it is important to know the book value of your used car that you are looking to trade in. It is usually an estimate number but can definitely help you understand and know if a dealer is trying to give you the raw end of the deal.
Usually if you sell it privately, it is more likely that you will get a better deal as close to your asking price as possible but this is definitely time-consuming if you are looking to get your used car traded in as quickly and easily as possible. However, it is important to put effort and time in the trade in process as well.
These tips will be the starting point for your journey when you want to trade in your used car:
As mentioned before, knowing the book value of your used car is an essential part of the process. You can get this information from the TransUnion website for a mere cost of R30, or you could do some desktop research on AutoTrader and get a fair estimation comparing your car to cars on sale with similar amount of kilometres, year of manufacture and car brand. In most cases, the trade in price is between 8-10% of the book value in the TransUnion Auto Dealer's Guide.
You need to shop around and find a dealer which will most likely give you as close as possible to your asking price. They will take some factors into account such as how many kilometres are on the odometer, if there is a history of the car being in an accident or multiple accidents, as well as what condition the used vehicle is in, including the exterior and the interior.
It is important to make a good first impression, so making sure your car is clean both on the inside and the outside is of the utmost importance. It is also vital to have your service history documents with you when presenting your used car for a trade in, as this helps to negotiate a better price. The documents provide evidence of when and what was repaired and replaced. Furthermore, it is indispensable and vital that they are kept up to date. Polish your used car and try to get rid of any scratches and make sure the headlight covers are not murky (using toothpaste will help to clean and bring back the sparkle in headlight covers).
Some dealers will only accept trade in offers for your used car if you buy directly from the dealership. This means the options become more limited in terms of trading in your used vehicle. So getting the best value for your car, makes this familiar challenge in our daily lives, slightly more time consuming. Perseverance pays off as well having a realistic view on the situation. It is an important highlight that research is key in understanding what the market standard is in terms of trade in value for your used car and ultimately shop around as much as you possibly can.
