Auto Dealer Trade-In Tricks

When it’s time to buy a new car, you may need to sell your old vehicle. One of the first things a salesperson asks is whether you’re trading in your old vehicle. Taking a trade-in gives the car dealership more room to negotiate and make more money from the car-buying process. Find out about common trade-in tricks to get the best price for your used vehicle.

If you have questions about your legal rights after trade-in fraud, a dealership fraud lawyer can help. Contact a vehicle fraud lawyer for legal advice about the trade-in process.

How Can You Get the Most Out of a Trade-In?

To get the most out of your trade-in vehicle, understand the tricks car dealers use. This way, you can avoid getting scammed. You can also research beforehand to get a better idea of the value of your car and the new car’s price. Be clear with the dealer and be prepared to walk away if you don’t think they’re treating you fairly. Here are some tips to get the most out of a trade-in:

• Research your current car’s blue book value
• Get the car loan pay-off amount
• Get pre-approved for a lower-rate auto loan from your bank or credit union
• Know your maximum down payment and monthly payment budget
• Test drive vehicles before talking about your possible trade-in
• Identify the vehicle you want and research its market value
• Wash and detail your vehicle
• Have your vehicle maintenance records
• Get a trade-in price from more than one dealer

What Are Common Trade-In Tricks Used by Car Dealers?

Dealers increase their profit by negotiating the trade-in value, new car sale, and financing. A dealer may make a great trade-in offer but include a higher price on the new vehicle. A lower offer for the trade-in can offset the lower price for a new car. You need to find out the bottom line and final out-the-door price.

Shady dealers can use all kinds of tricks to increase the final sale price, even without a trade-in. The trade-in just gives them more ways to negotiate. A high trade-in offer doesn’t mean much if the dealer tacks on more fees. Common ways the dealership may try to increase the total cost of a trade-in deal include:

• Making lowball offers
• Telling you the trade-in isn’t worth much because of the resale value
• Pointing out all the dents, damage, and wear to make you think it has a lower value
• Mixing negotiations for the trade-in and new car purchase
• Not telling you about trade-in tax credits
• Changing the offer after they say you don’t qualify for the lower interest rate
• Taking your trade-in before you finalize the sale

For example, a common scam involves taking your trade-in with yo-yo financing. Dealerships often use spot financing to approve a deal while they wait for approval from the lender. The dealer sells your trade-in and then tells you to return the vehicle because financing fell through. They will then use high-pressure sales tactics to make you pay a higher price.

Should I Trade My Car With the Dealership?

You may get more out of your used car by selling to a private party instead of a dealership. Putting out an ad for your used car opens it up to more people than just the dealer. However, selling your own used vehicle can involve other problems. This includes online scams and test drive hassles.

If you want to sell your own vehicle, do your research. Understand your car’s trade-in value and the vehicle’s condition. You can get an idea of the car purchase value from Kelley Blue Book (KBB) or Edmunds. Clean the vehicle and take good pictures. Be prepared to negotiate and know the bottom-line purchase price you will accept.

Some car companies make selling your car simple without having to deal directly with car buyers. Services like Carvana or CarMax will give you an instant cash offer online for the value of your trade-in.

How Can I Report Dealership Trade-In Tricks?

You can report dealership fraud to the Federal Trade Commission (FTC) or your state attorney general. Certain dealership car trade-in tricks are against consumer protection and lemon laws. The FTC or your state agency can investigate the salesperson’s tricks and issue penalties against the dealership.

Can a Dealer Fraud Lawyer Help After Getting Trade-In Scams?

If you were scammed by the dealership when you traded in your used car, talk to a dealer fraud lawyer for legal advice. Your lawyer can review your case and explain your legal options. You may be able to recover damages in a fraud claim, including:

• Getting your old car back
• Getting a refund and returning the new vehicle
• Covering attorneys’ fees
• Getting punitive damages

Contact a dealership fraud lawyer to find out about your legal options after trade-in trick fraud.