Trade-in value, explained.
What a dealer will pay for your car, how they get to that number, and how to make sure you are not leaving money on the table.
What trade-in value actually is
Trade-in value is what a dealer will pay for your car today. It is always below the private sale price, because the dealer has to recondition the car, hold it until it sells and make a margin.
What moves the number
Model, age and kilometres set the starting point. Service history, accident repairs, tyres, paint and current demand for that exact model then push it up or down.
How to get more for your trade-in
Know your range before you walk in. A free valuation by rego gives you both the wholesale and private sale ranges.
Keep the trade-in and the new car price separate. When they are bundled into one figure it is hard to see whether the discount on one has been taken back on the other.
Compare more than one offer. A single dealer's appetite is not the market.
Trade-in questions
How is trade-in value calculated?
A dealer starts from what they expect to sell the car for, then takes off reconditioning, the cost of holding the car until it sells, and their margin. What is left is the trade-in offer.
Why is my trade-in offer lower than private sale prices?
Because the dealer takes on the work and the risk of reselling the car. The gap is the price of a quick, certain sale.
How can I get a better trade-in value?
Get a free valuation first so you know the range, bring a full service history, fix small cosmetic issues, and ask for the trade-in and the new car price as two separate numbers.
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