The Dealership Appraisal Process
When you arrive at the dealership to finalize your purchase, they will conduct a physical inspection of your trade-in vehicle. This appraisal typically involves checking the exterior for damage, evaluating the interior condition, checking tire wear, and taking the car for a short test drive to assess its mechanical state.
The dealership uses this physical inspection, along with market data on recent sales of similar vehicles, to determine a trade-in value. This value is what they are willing to pay for your car to acquire it for their used inventory or to sell it at auction.
Because Keyosk operates remotely, we cannot perform this physical inspection. Therefore, any estimated trade-in values discussed prior to visiting the dealership are subject to change based on the dealership's in-person appraisal.
Preparing Your Trade-In
To receive the best possible value for your trade-in, it is advisable to present the vehicle in good condition. Cleaning the interior and exterior can create a positive impression during the appraisal. Removing personal items and ensuring you have all sets of keys and the owner's manual is also helpful.
If there are minor mechanical issues or cosmetic damages, you must decide whether to repair them before trading the vehicle in. Often, the cost of repairs exceeds the increase in trade-in value, but significant issues will noticeably reduce the appraisal amount. The dealership will factor the cost of reconditioning into their offer.
Having maintenance records available can demonstrate that the vehicle has been cared for, which some appraisers may take into consideration.
Applying Trade-In Value
The final trade-in value offered by the dealership is typically applied as a credit toward the purchase of your new vehicle. This reduces the total amount you need to finance or pay in cash. In many states, applying a trade-in also reduces the amount of sales tax you owe on the new vehicle.
If you are unsatisfied with the dealership's trade-in offer, you are under no obligation to accept it. You always have the option to sell the vehicle independently to a private party or to another business that purchases used cars. The decision of how to dispose of your old vehicle rests entirely with you.