Did you know that the trade-in value of a car is not what your dealership will sell it for? By definition, the trade-in value is the dealership’s estimate of your car, which is deducted from your new vehicle’s price.
The following is a simplified example of this process:
- You see a new vehicle that you like at our Chevrolet dealership in Glencoe priced at $40,000.
- You opt for a trade-in of your old car.
- We determine that the value of your existing vehicle is $10,000.
- This amount is shown on your purchase contract as $40,000 (the price of the new vehicle) minus $10,000 (the trade-in value of your old car).
- You’ll be paying $30,000 on your new vehicle, along with fees, taxes, and any additions.
How is a vehicle trade-in value calculated?
During the purchase process, our Chevrolet dealership in Glencoe makes an evaluation of your vehicle’s trade-in value using guides such as the Kelley Blue Book, Black Book, and other auto reports to set a dollar amount. Other factors will also be taken into account, including:
- The vehicle’s mileage
- Optional features
- Physical condition
- Market demand
You, as a car owner, have access to the above resources. You can verify whether the trade-in value of your car is fair or if you should inquire elsewhere. When you compare values, if the dealership is offering you a higher amount than the value of what you’ve researched, you’re in a best-case scenario and should take the offer. If it’s lower, other factors can impact the dollar amount such as the dealership having too many of the same make and model in their lot or there is not enough demand for your car.
Why trade in your car?
Simply put, most car owners who opt for a trade-in are looking for convenience. Selling a car privately takes time and patience - however, you’ll receive the retail value of your car. If you choose to trade in your vehicle, the process is much simpler than private selling, but it comes at a cost.
Keep in mind that trade-in values are lower than the car’s retail value. This is because most used cars need to be reconditioned. The dealership will need to cover the costs of fixing worn parts and other details before putting the vehicle up for sale. Another important thing to consider is that dealerships get more business for used cars because they offer financing, which means that you will likely receive a fair trade-in value.
If you don’t have time to sell your car privately, a trade-in may be the right option for you. In any case, be sure you’re receiving a fair appraisal or valuation. At our Chevrolet dealership in Glencoe, we’ll work with you to help you find a new vehicle and smooth out the trade-in process. You can drive away with the vehicle you’ve been eyeing in no time.
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Pre-Owned Inventory