How to Maximize Your Car’s Trade-In Value

1. Know Your Car's Value

Before stepping into a dealership, take the time to research your car's estimated trade-in value. Tools from sites like Kelley Blue Book, J.D. Power and Edmunds offer a range of values. Most tools let you get a more precise estimate by entering your vehicle identification number (VIN), license plate or vehicle details. Then, they'll present an estimated value based on a variety of factors including:

• Year
• Make
• Model
• Trim level
• Mileage
• Condition

Dealers also factor in local market conditions and their current inventory needs. If your vehicle is in high demand or short supply, you may get a better offer.

Tip: Compare your estimated trade-in values to the prices of similar vehicles in your area using online marketplaces or online listings.

2. Clean Your Car

A clean, polished car gives the perception that it's been well cared for. This can lead to a higher offer, since dealers are more confident they can resell the vehicle quickly.

Hiring a professional detailing service can be worth it. Professionals typically deep clean carpets and upholstery, polish paint and clean the engine bay.

If you're cleaning the car yourself, make sure to focus on:

• Interior: Vacuum carpets, clean upholstery, wipe down surfaces and remove personal items.
• Exterior: Wash and wax the paint, polish stainless steel features and clean the wheels and tires.
• Engine bay: Carefully clean the engine compartment to show care and maintenance.
• Headlights: Restore cloudy lenses with a polishing kit for a newer appearance.

3. Fix Minor Issues

Small cosmetic and mechanical issues can lead to automatic value reductions. Fortunately, many of these can be fixed affordably before you get an appraisal.

Minor repairs to consider include:

• Small dents or paint scratches
• Chipped windshields
• Burned out headlights or turn signals
• Brake pads

Also be sure to take care of any outstanding recalls, which you can check for on the National Highway Traffic Safety Administration's website.

Be careful about investing in major repairs or bodywork. If the cost of the fix is more than the increase in value, it may not be worth it. Major problems may affect your trade-in offer, but these repairs will likely be cheaper for the dealership to take care of.

4. Make Sure Electronics Work

Today's cars rely heavily on electronics and infotainment systems. Buyers and dealerships expect features to be fully operational. Make sure everything is working as intended, especially:

• Power windows and mirrors
• Seat adjusters
• Interior and dashboard lighting
• Heating and air conditioning systems
• Touchscreen displays and backup cameras
• Bluetooth, USB and smartphone integrations
• Windshield wipers

Learn more: How to Protect Your Car's Value

5. Gather Maintenance Records

A clean maintenance history shows you've taken care of your car, which can increase its value.

When you get your car evaluated, bring documentation for:

• Oil changes and fluid flushes
• Brake service and tire rotations
• Paint touch-ups and bodywork
• Recall repairs and warranty services
• Service receipts from independent mechanics

If you don't have maintenance records on hand, request copies from your mechanic, dealership or service shop.

Tip: Consider purchasing a vehicle history report from Carfax or Autocheck to prove your car's accident and maintenance history.

6. Shop Around

Different dealers may offer different amounts for the same vehicle. Don't accept the first offer, especially if you're not under pressure to buy. Visit multiple dealerships for competing trade-in quotes, including those that don't sell your car's brand, and get quotes from online dealerships for comparison. You can use your best offer as leverage during negotiations.

7. Time Your Trade-In Strategically

Timing can impact trade-in value. Dealerships often pay more in the spring and summer when consumer demand is higher. Avoid trading during the winter when fewer people are shopping for cars.

Don't wait until you're desperate for a new car. You may be tempted to accept a low offer if you can't afford to take time to shop around. Being proactive maximizes your trade-in value by preventing you from settling under pressure.

Learn more: When Is the Right Time to Trade In a Car?

8. Negotiate the Trade-In Price Separately

If you're hoping to buy a new car after trading in, negotiate the deals separately. Some dealerships may offer more on your trade-in, while increasing the price of the new vehicle or vice versa. To avoid confusion, finalize your trade-in offer first. Then negotiate your new car price separately.

Bundled deals make it hard to see what you're really paying. Keeping the two negotiations separate gives you more control.

Learn more: How to Negotiate the Price of a Car

Frequently Asked Questions

The Bottom Line

The more value you get from your trade-in, the less you'll need to finance. This means more interest savings over time. Combine that with a good credit score and you could save significantly on interest charges and monthly payments. Check your credit score before applying for a new auto loan to see where you stand and what loan terms you might qualify for.