Dealer Specials

Breaking Up With Your Current Car

So, you’re looking to end your relationship with your current vehicle and get a newer, flashier model. What you need to do now is make sure you get the right amount back from your trade-in.

You can get an estimation of the fair retail price of your vehicle at www.nada.com. Remember to look for the retail value, not the wholesale value. Wholesale is what dealers use when they buy a car at auction. Retail is what dealers use in the market.

Hardly Used vs. Very Loved

You also need to assess the condition of your car. This part is not black and white. Your car has history just like you do. How many miles does your car have on it? Has it been in any accidents? Use the information you get from NADA as a general estimate of what you can expect to get from the dealership. Go ahead and bring a print-out of the estimate from NADA to the dealership. They’ll appreciate that you did your research, and they can help you understand the value of your trade-in.

When you know what your trade-in is worth, you can consider that as part of what you can afford for your new car.

Negative Equity

Ah, the dirty word … NEGATIVE EQUITY. When you bought your car it was worth a certain dollar amount, but market values change through time. You may find that it makes more sense to wait to pay off more of your current loan before you trade in your car and get another model. That’s okay. Just keep checking in on your equity and when it makes sense, go ahead and make that trip to the dealer. Car buying is largely emotional. But, don’t worry - the car of your dreams will be waiting when you’re ready to buy it.