OK. So you are getting ready to buy your next car (perhaps from me at Parkway Cadillac, Buick GMC in Valencia?) and you have all of your ducks in a row…you have your financing, your trade-in value, your price reports and your Consumer Reports make/model information. You may even have a pricing certificate from one of the online buying services and your CostCo card ready to get even more savings.
But then you head to the dealer and after three hours of negotiation, you learn that your trade-in is worth about $3,000 less than you thought it was. KBB said it was worth a very specific amount but the dealer isn’t honoring that…what happened?
Dealers take many things into account when valuing a trade-in and, unfortunately, consumer sites like KBB, Black Book, NADA, etc. are at the very end of that list. ((Make sure you select “Trade In Value” when you use those tools, as that number is very different from “Retail Value.”)) The single most important factor for the value of a used car is sellability. Can they sell it either on their lot or at an auction? And if they can, will they make money doing it? So suddenly, the decisions you have been making about your car over the lifetime you have owned it are REALLY important.
Big things like accidents are a no brainer…of course that sways price. But what else should you avoid doing and what should you always be sure to do? Following is a list of do’s and don’t’s for maintaining the value of your car.
DO
Regular maintenance: Of course, oil changes and routine multipoint inspections at your dealer or with a trusted mechanic are a great idea. Further, if your dealer gave you added maintenance and care packages at the time of purchase, take advantage. The better shape you keep your car along the way, the better it will be when you are ready to trade it in. And…
Save all of your maintenance records: It seems like a minor detail, but it is a question you will be asked at the time you present the trade. If you do the maintenance and get the oil changes, having that proof just helps smooth the process.
DON’T
Smoke in the car: This sounds like a no-brainer, but for smokers – being addicted – this is sometimes an uphill battle. There is no way to smoke in your car and not make the smell part of the interior. Smoking with the windows open, with the sunroof open, with the cigarette out the window, exhaling out of the window…none of it works. The smell adheres itself to the surface interior and your car then becomes listed as a “smoker’s car.” If you need to smoke, get out of the car…you will recover thousands of dollars in trade value.
DO
Deal with scratches and dents BEFORE you trade: Yes, this is going to cost you money out of pocket, but it is going to cost you more at the dealer when you trade. Your repairs will cost you half in real money what you will lose in value to a dealer. There are plenty of body shops around you that will do a quick paint match touch-up, scratch buff-out or dent repair and it will only add to your car’s value.
DON’T
Ignore your tires: Someone has to make sure that the tires aren’t completely worn down when you trade in your car. If it is the dealer, you can bet that he is going to put new tires on and make you take the hit for it. I am NOT saying go and outfit your car with new tires. I am, instead, recommending that you pay attention to tire wear througout the ownership process and make the necessary changes at the time they are needed. Don’t walk into the dealer with tires that are 10,000 miles over their wear cycle and expect to not get whacked for it.
DO
Detail on occasion: I’m not saying every car wash needs to be the $99 special at your local joint, but at least once a year, baby your car with a full inside/outside detail. It refreshes the paint, it keeps the chrome clean, it does away with any kinds of build-up and it keeps the interior from getting too far out of hand. Once a year, it’s all I ask.
DON’T
Use dirty tools to wash your car: If you are going to hand wash your own car, make sure all of your tools are clean, from soaping mitts to sponges to buckets. If any of them get dirt or sand in them and don’t get rinsed out, you are just begging for swirls in your paintjob. A through clean and rinse of your tools before and after washing will ensure a debris free work area.
And one last piece of advice, disclose everything. If the dealer asks if you were in an accident, they are going to find out anyway, whether it be via CarFax or when they put through its inspection after making the trade. If they discover you lied about damage ,they can unwind the deal, leaving you with a devalued trade and no new car.
If you use common sense over the course of your car ownership, and make sure that you treat your investment the way a $30,000+ investment should be treated, there is no reason that you can’t get maximum return when it is time to trade.
LM Comm: Notes on a Corkboard 