Are you looking to trade-in your old car for a shiny new one? Trading-in can sometimes be the hardest part of the car buying process, especially if you can’t a dealer to give you the full value of your vehicle. But understanding how to trade in a car and how to gather offers will help you maximize your trade-in value and get a better overall deal. When you trade in your car, your old vehicle’s value is deducted from your new car’s price. To get the highest amount possible, it is essential to know you can negotiate the trade-in value and the new price separately.

There are four main parts to the trade-in process and I will break them down for you so you can get the full understanding of the whole process.

Price your trade-in:

• This part does require you doing some homework. The first step is to use online prices to help you estimate your car’s trade-in value.
• Be sure to include all the car’s options, the correct mileage, a realistic condition level and your ZIP code for the most accurate value.

Solicit Quotes For Your Trade-In:

• Be sure you have the following before you get trade-in quotes from dealerships
• Vehicle title (often called a “pink slip”), Auto loan payoff and account information (if you have an auto loan), Current vehicle registration, Driver’s license, All vehicle keys
• To get quotes, call  or email dealerships
• Tell them you are looking to trade-in and want a fair price
• Most dealers will only give firm trade-in quotes after a physical inspection of the car

Choose An Offer:

• To get the best deal possible on your new car, you’ll want to make sure both the trade-in value and sale price you’re offered are in line with those listed online

Close The Deal:

• The trade-in value is deducted from the new car price
• You then pay the remaining amount for the new car with cash or with an auto loan
• If you’re downsizing and your trade-in is worth more than the new car, the dealership will give you a check for the balance.

Still, Owe On Your Trade-In?:

• If the trade-in value is worth more than the remaining balance on your auto loan, this difference is credited to the sale price
• If you are upside-down on your car loan, meaning you owe more than the car is worth, you’ll pay the difference when you trade in