Before you do any research, think about if it’s the right time to try to trade-in your car. For example, when gas prices increase, larger cars like trucks and SUVs are less in demand. Also, if you owe more on your car than what it’s worth, you won’t be in a good position to negotiate. Once you decide to make a trade-in, the first step is to research the value of your car. There are many websites like Edmunds.com, Kelley Blue Book, and AutoTrader that provide the information you need. You can also call car dealers in your area or even visit a few in person to get an approximate trade-in value.

Once you have a general idea of what an average model of your trade-in is worth, you need to take a realistic look at the condition of your own car in terms of mileage, body damage, paint condition, etc. Before you go to a dealer, make sure your car is clean. Vacuum the interior, get rid of unwanted odors and make it shiny on the outside. Spending a little money fixing minor dents and small problems could go a long way in increasing your trade-in value. It’s also a good idea to bring all of your maintenance records for your trade-in, as it may help you get a better price.

Another way to get a good price for your trade-in is to shop around. Don’t feel like you have to make a final decision with the first dealer you see. Visit three different car dealers to get a sense of what your trade-in is worth. Since inventory varies across dealers, you might get a better price from the third dealer you visit because they don’t have your make or model in stock.

Most importantly, negotiate the price of your trade-in separately from the price of your new car. Start your deal with your trade-in, especially if you have a popular car. A lot of factors go into determining the price of a new car, including down payment amount, financing terms and the price of the car. You want to make sure the value of your trade-in is not affected by the pricing of your new car. One alternative is to finance your car through a credit union or another bank.