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Understanding The Value Of Your Trade In
By Greg G Chapman
If it is time to trade in that used car and time for a new one, there are a few things to understand about how the value of your used car is estimated. Having this information will help you also understand how much you can afford in buying another car to replace your used one.


1. Go Prepared With Information - Write down the year, make, mileage, and model of your car before going to the dealership. Most cars come with standard equipment and then there are options that can increase the value of your car. Write down all the options you know your car has such as heated leather seats, sunroof, power windows, etc. Also be sure to clean your car up before taking it in, make it presentable. There are other factors that determine the value of your car. These include at times the day of the month it was built, the product mix the dealer has on the lot and the inventory mix. For example, if a dealer already has five white Camrys on the lot, and you want to trade in a white Camry, they won't give you much for your car. If they're light on that car, or they're one or two cars short of making a bonus, they might be more anxious to offer you a bit more. Also, know how much curb appeal your car has. Does it have dents or dings? Another consideration is, have you been smoking in your car or is the upholstery in good shape? How well have you been taking care of your engine and keeping your fluids up? All of these above items will be considered by the dealer in determining

your trade-in value.

2. Weigh out Kelly Blue Book Values - Most people use the Kelly Blue Book to get an idea of what their used car is worth but remember that these estimates are usually high. Many people have the misconception that a dealer can pay a price for a trade-in that is equal to what a consumer would pay. The dealer has other costs to consider such as how long it will take to sell your trade-in, the cost of advertising it or holding it as inventory. Also know that it is possible that your car's value may have dropped in street value, one that the Internet hasn't caught up with yet.

3. Knowing the value of your car helps know what you can afford. When you know your used car's approximate trade in value, you can then determine if you want to go ahead with trading it in or selling it yourself. Another thing to consider is how much you owe on your car or what is the payoff? If you are upside-down on your loan, that is, you owe more than the car is worth, remember that amount has to be rolled into your new car loan. Weigh out this amount so you can determine how much car you can afford or get a loan for before going into the dealership.

Going to a dealership with this information will help you feel more prepared in understanding what the true value of your used vehicle is along with how much of a newer vehicle you can afford.
Greg Chapman of Greg Chapman Motors is a knowledgable and leading provider of used cars, trucks, and SUV’s. Since 1959, Chapman motors has supplied reliable used car Austin and the surrounding area. For more information please visit www.gregchapmanmotors.com.

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