| If your in the market to buy a new or pre-owned | | | | Once you have selected the car you want to |
| vehicle from a dealership and have a trade, here are | | | | purchase, you are ready to negotiate the price. Leave |
| some important tips that will save you a lot of money | | | | your trade out. If the salesperson asks you if you are |
| and also serve as an education. First, before you go to | | | | trading your vehicle in, tell him or her that you are not |
| the dealer, do the the research find out what your | | | | sure yet you might want to give to a family member. |
| vehicle is worth. You can find this information on the | | | | Make the deal on the car you are buying, ask for the |
| web, by either going to or several other sites available. | | | | invoice if it's new. Work from the invoice price. Most |
| If you are using KBB, understanding the difference | | | | dealers when they know you are trading your vehicle |
| between wholesale and retail can cost you a lot, | | | | in, will start from the MSRP, and show you trade |
| depending on the year, make, model and most | | | | allowance. What this means is simply they will knock |
| important the condition of your trade. | | | | off a few hundred dollars or so from the mark up (the |
| A vehicle that has high mileage, body damage, older or | | | | Profit) and add it to your trade. This way it looks like |
| in rough shape, will most likely end up at some auction | | | | you are getting more. The way to get around this is to |
| to the highest bidder. The dealer does not want to | | | | keep your trade out of the picture, make your deal |
| assume any responsibility in the event of a warranty | | | | then throw in your trade. You see now, there is no |
| claim or spend any money to recondition the vehicle | | | | where to go other than Actual Cash Value, true value |
| and putting it back on the lot. Therefore the vehicle will | | | | not the trade allowance trick. Your research now pays |
| be sent to the auction and sold at cost or wholesale | | | | off. |
| value. This value is determined from auction prices that | | | | Remember the tax benefit you will also save. For |
| Dealers receive weekly on current market conditions. | | | | instance, if the vehicle your are trading in, is worth |
| If your trade is clean, has low mileage and in good | | | | $10,000.00 to the dealer, taxes are calculated on the |
| shape, chances are it will be retailed. It will be taken in | | | | trade difference. So if the car you are buying cost |
| trade, reconditioned, detailed and prepared for the next | | | | $20,000.00, minus $10,000.00 for the trade you only |
| buyer. This will only happen if the dealer feels after all | | | | pay tax on the difference of $10,000.00. The reason I |
| expenses he can make a healthy profit. The | | | | mention this is if you are a few hundred dollars away |
| difference between wholesale and retail in this case | | | | from making a deal, and decide to sell the trade on |
| can amount to several thousand dollars. | | | | your own because you believe your trade is worth |
| Another example of retail is the MSRP, Manufacturers | | | | more, you lose the tax break. Sometimes the amount |
| Suggested Retail Price on the window sticker. Some | | | | is so little from your research price and what is |
| brands mark their product up as much as $5000.00 or | | | | allowed, you are better off to take the deal, the tax |
| more. | | | | break will make up for it. |
| Before going to the dealer, clean your trade inside and | | | | If for any reason you are uncomfortable with the |
| out, dashboards, vacuum floors, seats, trunk and get rid | | | | numbers or have a problem because you don't |
| of any garbage or Items that doesn't belong in the | | | | understand the math, just get up and leave. Never feel |
| vehicle. This alone will increase the value. Dealers will | | | | embarrassed because you are not sure or understand. |
| always pay more for vehicles that are well maintained | | | | Ask for a breakdown of the numbers until it is crystal |
| whether old or newer. | | | | clear. I hope this information helps. Happy $avings. |