Smart Tips to Calculate Trade-In Values

Calculate trade-ins by deducting the dealer's maintenance costs. Regardless of the condition of your car, many dealers will charge a reconditioning fee of $500 or more. The reconditioning fee will cover the cost of a safety check, car detail, smog check certification and other maintenance fees. If a car dealer makes a deal to trade-in your car, be sure to ask the following questions: - Is the trade-in offer before or after reconditioning? - Can you rollover the outstanding debt of your trade-in to your new car purchase? (Remember to refinance the rolled over loan to avoid a long term loan where you will pay more for the new car than its value). - What is the wholesale and retail value of the trade? - If you are under warranty with your trade in, ask the salesperson if he can recommend a new car with an incentive amount that covers your debt. This tactic will help you offset trade-in debt while eliminating the effects of a "rollover.” - To ensure that you are getting the best deal, request a breakdown of each fee and credit associated with your trade in purchase of a new car.