In order to evaluate a car trade-in allowance offer properly, you must first arm yourself with the right information. By using the Kelley Blue Book, and knowing both the wholesale and retail value of your used car in advance, you will be able to negotiate the best possible deal.
Instructions
1. Obtain a copy of the Kelley Blue Book in order to evaluate a trade-in allowance offer for a car. The Kelley Blue Book is the universally recognized authority on the value of any car bought and sold in the United States. You can purchase a copy of the current Kelley Blue Book at most bookstores and auto parts stores, or you can even request to see the car dealer's copy.
2. Check on both the wholesale value and retail value of your car to evaluate a trade-in allowance. The wholesale value reflects what the dealer will try to pay for your car so that a profit can be made on its resale, while the retail value reflects what you may be able to get for your car if you sold it privately. It should be your objective to receive an offer from the dealer that is closer to the retail value than the wholesale value.
3. Determine the condition of your car in relation to its value in the Kelley Blue Book. If you have high mileage, dents and scratches or mechanical issues with the car, it will be worth a lot less than the Kelley Blue Book price. It's easier and more profitable to have these issues fixed in advance, since a dealer will subtract substantially more than the actual cost of the repairs.
4. Ensure that the trade-in allowance you receive is without conditions, and that it is in writing. In some cases, a trade-in allowance may flex in tandem with the price you negotiate for the new car. Separate the two offers, and don't sign an agreement until you feel comfortable with the deal.
5. Bring the Kelley Blue Book with you when you evaluate the trade-in allowance, or print out the relevant quote from the Kelley Blue Book website (see Resources below). By appearing informed, you will be able to negotiate the best deal.
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