There are, of course, “pros” and “cons” for both selling your older vehicle privately and trading it in at the dealership. Most people agree you can get more for your vehicle privately, but that’s far from a guarantee and it can cost you time, effort and often, considerable frustration as well.

Here are a few ways to help you get the most value for your old car:

There are two main ways for a dealer to obtain a used car – either from you via a trade-in or at auction. Your trade-in is far more attractive because auction vehicles often include a sketchy history. Typically, a trade-in will come with a complete service history and proof of its condition – especially if the car is familiar because it has been serviced at Brasso.

What is the Vehicle Worth?
Check local listings for vehicles similar to the one you’d like to trade in, but before demanding a similar price from your dealer, there are two things to keep in mind:
1. Make certain you are comparing apples to apples, meaning be sure the vehicle you are comparing yours to is the same model, trim level, transmission, condition, mileage and even colour. Yes, even an odd colour can hurt the value of your trade.
2. Remember that the listing you are comparing to should be considered “retail” pricing and all a dealer can offer you will be closer to a “wholesale” value because they need to resell it at a profit. Be fair to yourself, but be fair to your dealer as well.

Tax Savings
Dealers also allow you to take advantage of something called “tax savings.” This involves subtracting the value of your trade-in from the retail price of its replacement before any of the amounts are taxed. This effectively reduces the tax amount you need to pay on your new vehicle. For instance, if the car you want to buy costs $40,000 and your trade-in value is $25,000, then the taxable amount is the difference between those two numbers, which is $15,000. With this, you get the GST credit for their trade in. So if the trade is worth $15000, customer will get a gst credit of $750. $750 will be taken off from gst.

Convenience or In-and-Out Trade
If you want to maximize your trade-in earnings, even more, you can try out something called a “convenience” or “in-and-out” trade. You trade in your old vehicle for a new one, but with a promise that the old one will be sold to a third party for the same price as the trade-in. The third party is usually someone you know personally, like a friend or relative.

If you want to profit from this, you need to agree with your third party on a price above the trade-in value, but below the retail cost. For instance, if the trade-in is worth $25,000, but the vehicle retails at $28,000, then you can set the price at $27,000. Doing so allows you to get more money out of your trade-in and lets your friend or relative to buy a cheaper vehicle. Combine this deal with tax savings, and you can save quite a bit.

And there you have it: the basics of trading in your older vehicle. Is trading in something that interests you? Click the TEST DRIVE button below to schedule an appointment with one of Brasso’s friendly customer service specialists. We’ll be happy give you a complete tour and road test of any new vehicle that interests you, and also explore what’s possible with your trade.