Do you plan to trade in your car for a new Cadillac? Here’s everything you need to know about Cadillac trade-ins to get the best deals!
Since 48 percent of all car purchases involve a trade-in, it might be a good time to trade your current vehicle for that Cadillac you have your eyes on.
Some people try to sell their old vehicle by themselves but then realize the substantial time and effort required to pull it off.
But if you go the trade-in route, how can you be sure you get a fair value?
The great thing is there are steps you can follow to get the most value.
Appraise Your Car’s Value
You want to determine if you are offered a reasonable value. Knowing your car’s worth is a good place to start.
Websites like Edmonds.com offer such tools as True Market Value (TMV) you can use to arm yourself with data before you go to a dealership. Make sure to accurately include the options and features your car has.
Typically, well-maintained cars will be in the “clean” condition. Use caution when in doubt. For example, don’t list it as “outstanding” unless it really is.
Establish the price you’ll pay for that new shiny Cadillac before you consider the trade-in. This creates a good baseline for negotiation and prevents you from dealing with too many variables between the new and old vehicles.
Dealers must account for repairs, marketing costs and sales commission before they can make a profit on your old vehicle. This means their offer could be lower than if you sold it to a private buyer.
Basically, it comes down to how much you value your time. After all, once you trade your car in, it’s history to you.
There are tax savings when you trade your vehicle in.
Say your new Cadillac is $20,000 and your trade is valued at $10,000. Tax only applies to the $10,000 difference. This can be beneficial compared to selling to a private seller because you lower the taxed amount on the new vehicle.
For this example, you’d save you $700 in taxes assuming a 7% sales tax rate.
Before you jump to a trade-in consider the following key essentials:
- Keep an eye out for dealership trade-in promotions. Limited-time offers and seasonal promotions can offer incentives to make a good deal even better
- Kelley Blue Book or NADA online are great resources to research car values
- You’re responsible for the loan on the trade-in. Its remaining balance should be paid off before you take the old vehicle in.
More on Staging
With vehicle trade-ins, prepare your trade-in to make sure it’s clean.
A thorough cleaning demonstrates, at least in appearance, how the car was treated while you owned it.
Like a movie, when you “stage” a vehicle you make it look like it’s in perfect shape – include waxing, washing and vacuuming.
For small exterior dings, getting them fixed is appropriate for vehicles under 50,000 miles. Vehicles with more mileage typically are auctioned off, and dings are less of an issue.
Ideally, this habit started when you first acquired the vehicle you now want to trade-in. Keep records and receipts for work done on the vehicle provide documentation should someone question your cars condition.
Routine maintenance, bodywork and the replacement of major parts and components are all records and receipts to hold on to. They come in handy during trade-in negotiations.
Remember You Have the Power
Dealerships love to buy used cars they can in turn sell for a profit. Remember, you have an asset worth real value that dealers need for their business models.
The savvier you are about vehicle value increases your leverage and negotiating power.
Typically, dealers have 6% to 9% markup for new vehicles. That’s not a huge amount of profit for the dealer.
Used cars can have a much larger margin. So the dealer actually needs your used car as much as you want to unload it.
Negotiate Trade-in and New Car Prices Separately
We know you’re eager to get your new vehicle. That can make the trade-in process seem like a lesser priority.
With trade-ins, make sure the price offered isn’t lumped into the price of the new car. In other words, don’t grab an enticing offer on the trade-in only to learn that value was simply rolled into the price of the new car.
How Trade-in Values are Determined
There are 5 main factors that determine the value of a used car:
- Year: Newer models typically garner more attention for used car buyers
- Make and model: Some brands are always in high demand, regardless of season or model year
- Condition: Exterior and interior are always taken into account
- Trends: Some cars are just trendy, which may only last a few years
Also, popular car valuation websites like Edmunds and Kelley Blue Book also factor geographic location into the value.
In the Plains, for example, we use salt on winter roads, which creates corrosion. So the valuation sites factor this in accordingly.
Get the Most Value
Trading your car into the dealership can be a great way to save time and hassle.
By taking a few basic steps that don’t really cost much money, you can both inform yourself and clean up your current vehicle so you’re in a prime spot to get a good deal.