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Trading in your Vehicle
How it really works
Trade-in work sheet
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Research Your Trade-in Value
You should always research the value of your trade-in.
Auto dealers will always pay less for the trade because they must consider reconditioning costs, safety repair costs and necessary profit. The must also take into consideration what the vehicle can really sell for. If your vehicle is an older model it is more difficult for the dealer to arrange financing for the next customer.
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Is Your Trade Easy To Sell?
Another aspect that can determine your trade-in value is the type of vehicle it is and the demand it attracts. For example four wheel drive extended cab
trucks have a steady supply of willing buyers. While a dealer will know that it may take longer to sell a sporty 2dr vehicle
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Recondition First
Make sure your trade-in looks its best condition and shape for a higher appraised value. Take the time to clean and vacuum the interior, wash the exterior, engine
compartment, clean the trunk and perhaps a quick wax job. No time... drop it by a detail shop for a quick cleanup prices range $65 - $150. Make sure the vehicle has had an oil change, this is usually checked on the appraisal. If you have made any recent repairs hand the receipts over to the appraiser along with the service records.
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Declarations
Declarations on your vehicle can also have an adverse affect on its value.
The dealer will ask if the vehicle has ever had a collision or accident over $2,000. If so where and how much damage was occurred. Vehicles that have been in a collision over $2,000.00 are worth much less in the eyes of the dealer and most future customers. Another declaration the dealer will need to know, has the vehicle ever been insured out of B.C. Vehicles go through different driving conditions from other provinces. The final declaration you'll be asked: Has the vehicle ever been used as a rental, lease or for racing. If you are not sure if your vehicle has any declarations check the original sales agreement or contact the previous owner.
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Tax Benefit
When trading in your vehicle, you receive a gst and pst tax benefit. You are only taxed on the difference between the price on the new car and your trade. You should
deduct the trade value from the cost of the new vehicle. If you owe the bank more money than the trade-in is worth to the dealer, you are upside-down on your trade and must add the difference between what you owe
and the trade value to the cost of the new vehicle. If you're making a cash down payment, either with or without a trade-in, be sure to deduct this amount from the cost of the new vehicle as well.
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Selling Privately
Should you decide to sell privately, have your vehicle look its best. Again, have all service and repair records available. Always know how much your
vehicle value is worth and how much people will pay. Always be prepared to negotiate if you sell privately. Some people may be looking for a vehicle for themselves and others to resell and make a profit
such as auto brokers and curbers. They will want to take the car for a test drive or safety check. Either go with them or take down their driver license number.
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Price Evaluation
Remember there are many books available that list all the makes and models such as: dealer black books, gold book, etc. Research what your trade is worth and
also what the real price should be on the vehicle you are purchasing. This is where mistakes are made and where money can be lost. Research, Research.
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Back to Buying Tips
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Trade-in work sheet
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BCAUTOS.COM, EMAIL
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