Maximizing Your Trade-In Value: How to Get the Best Deal for Your Old Vehicle

The average car prices have been rising exponentially making it harder than ever to buy or even sell a car. More people opt for used cars over new cars as they offer more competitive prices. However, the fact stays, you won’t sell your current car for the same rate you bought it. However, you can maximize your trade-in value by doing the following:

Doing Your Research

Before putting up your car for sale, make the internet your friend. Catch up with the changes and ongoing trends in the car dealership environment, while focusing on what new car owners are looking for. Most potential buyers are looking for cheaper alternatives that tick most of their boxes. While at it, search for similar vehicles, cars in similar conditions or have about the same mileage as yours. This research will also help you identify the high-demand areas and your car’s worth.

Shop for Car Dealership

Online car dealers like Edmunds, and Kelley Blue Book to approximate your car’s current sale or trade-in value. CarMax is also a popular car dealership option for Canada. You can collect as many quotes as you can and merge them if any other information from your research to come up with the best price for your car’s worth.

Typically, car dealerships link you to a salesperson who takes you through the trade-in process including valuation, personal financing, up to acquiring your next car. Alternatively, you can get a professional valuation from a third company like the Canadian Black Book.

Take Care of Repairs

When you are about to sell a car, repairs become more of an investment than an expenditure. Therefore, you stand to get a better offer by spending a little more on basic repairs and improvements. From an oil change, air filter, windshield wipers, and dents to a fresh coat of paint will give you more bargaining power. Even the tiniest change improves your car’s market value, bringing you closer to the best trade-in offer.

Take Impressive Pictures

First impressions matter most in car buying. The overall appearance of the vehicle will matter most to both online and physical buyers. With all the repairs and improvements done, a good photo can give your old car a significant boost. One look at your car should make the potential buyer want to have a second look.

Consider Sale Tax

A used or new vehicle buyer in Canada is subject to up to 15% of car sales tax 5% federal Goods and Services Tax (GST) and a varying Provincial Sales Tax. Trading in your car instead of buying a new one reduces the tax considerably since you only pay tax on the amount you top up at the car dealers. However, if you choose to sell your car privately, you stand to get more value for your car.

Bottom Line

Now that you have identified your car’s value, the salesperson you want to work with, personal finance options and the tax rates, you can focus on finding a buyer.

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