Avoid Parachuting Your Trade at the Dealership
Have you ever engaged in a conversation with a friend about trading in your vehicle for a new and improved model? Has this friend ever suggested that you negotiate the price of the new vehicle before letting the salesman know that you will be trading in your old car? This is one of the most common mistakes that customers make when negotiating for a new vehicle at their local dealership. For one, it requires you to lie, which doesn’t help build a trusting relationship between you and your sales person, and two, sales staff members know that the vast majority of their customers will be trading in a current vehicle, whether you offer this information up front or not. Buyers try this tactic out so much that dealers actually have a phrase for it: “parachuting the trade.”
It’s Best to Be Open and Honest With Your New Car Sales Associate
Lying about your trade isn’t going to benefit you during the car buying process one bit, so you may as well be straightforward and tell the truth. Actually, those that do try to use this strategy often find themselves at the dealership for a much longer period of time. Also, lying isn’t going to make the sales rep trust you, and this could lead to them questioning the condition of your vehicle. Remember this: the actual cash value of your trade-in is what it is, whether you mention it at the end of the car buying process or at the very beginning. The best way to go about it is to be upfront with your trade while also letting the associate know that you don’t absolutely need to trade in your current vehicle. It all depends what price they are willing to give you for it. When you’re honest with a car dealer, you will find that in most cases they are more willing to work out a better deal for you, and they may even work harder to get you a low interest loan that you can afford.
Know the Value of Your Vehicle Before Visiting the Dealer
It is important to educate yourself about the value of your vehicle before heading into the dealership. Go online and research the trade-in value of your current vehicle. One of the favored websites for trade-in values is Kelley Blue Book’s kbb.com. This site will give you an estimated trade-in value along with an estimated value if you were to sell it privately. Use these figures as a guideline when you make the decision to upgrade to something new and improved. The more you know, the better deal you may get.
May 29, 2012 by Jamie Rettig