When searching for a new car, one of the consumers’ first thoughts is what they should do with their current vehicle. Whether you have outgrown your existing vehicle’s usefulness, are having too many issues with it, or it has become financially irresponsible to hang on to, there are options to consider before attempting to sell the vehicle on your own.

Suppose your vehicle has cosmetic or ongoing repair issues. In that case, selling your vehicle to a private party can be a hassle, making trading in your car a viable option. Trading your vehicle to a dealership where you buy your new vehicle also opens many benefits not obtainable by privately selling your vehicle—knowing what to expect when going into a dealership with a vehicle trade-in that has issues will get you the best trade-in value for your vehicle.

### Trading a Car With Issues

Most of the time, car dealerships will accept your vehicle trade-in, even if it is in need of significant repair. The only way to know if trading your old car is your best option is to take your vehicle to a dealership to establish your car’s trade-in value. Once you know how much a dealership is willing to pay for your vehicle, you can trade or sell to a private party.

Dealerships often assess a vehicle’s value based on its individual parts because they have the resources to do any repair work necessary. Dealerships also have connections with vendors to part out junk cars and receive a maximum car value payout without selling or fixing any significant repairs. Dealerships will often offer you a more competitive offer for your vehicle than you would get selling to a third party. 

__Below are common car issues that lead consumers to believe a dealership may not accept their vehicle for trade-in:__

- Blown Engine
- Broken Transmission
- Dead Battery
- Check Engine Light
- Bad or Broken Brakes
- Electrical Issues
- Body Damage
- Fuel System Issues

While a dealership may accept a vehicle trade-in with one of the abovementioned issues, consumers should be aware that major vehicle issues will result in a low trade-in offer. It is not illegal to trade or sell a vehicle to a dealership with major problems as long as you disclose the issues. Failure to make the dealership aware of significant issues could result in legal trouble for you later.
Consumers should never forget that car dealerships are not junk car buyers and are not seeking out cars that have significate damage. A vehicle with significant mechanical or electrical problems has been deemed salvaged, or an insurance write-off could cause issues in a trade-in transaction.

### Preparing a Car for Trade-In

The main objective of preparing your vehicle for trade-in is to get competitive offers on your used car. If your vehicle has a major underlining issue, it may cost you more to fix the vehicle than the total car’s worth. However, if your vehicle’s problems are minor, they could be worth fixing before taking it to a dealership for valuation. Even if your vehicle suffers from major mechanical problems, making minor superficial repairs will increase your chances at the dealership for trade-in value. Below is a list of inexpensive maintenance repairs that you can make to get a better price for your older car in trade-in.

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#### Change Headlight Bulbs

The bulbs inside your headlight and taillight assemblies are inexpensive and easy to replace. If you have any dead bulbs, replacing them before getting your car evaluated by a dealer could score a small point in their evaluation. While replacing any dead bulbs or attempting to increase the curb appeal of your trade-in, you can also clean the insides of the light assemblies. Cleaning your light assemblies could remove years of built-up residue that could be fogging or dimming your lights.

#### Clean the Interior 

It may seem like an obvious suggestion, but cleaning your vehicle’s interior before attempting a trade-in or evaluation by a dealership will make a better first impression of the vehicle. Thorough cleaning is especially important for vehicles with problems as it could help your vehicle’s overall inspection score. Washing your vehicle’s floormats, upholstery, seats, and dashboard could lead to a more favorable valuation of your vehicle.

#### Buff Out any Scratches

Exterior paint touch-up kits are a relatively inexpensive way to improve the exterior appearance of your older vehicle. Over time your vehicle gets dinged or scratched, or the paint becomes faded through extended exposure to the elements. Most automotive manufacturers sell touch-up kits directly, or you can purchase one through a third-party vendor. Taking the time to buff out a few scratches could significantly affect how much the dealership haggles you on the trade-in price.

#### Wash and Wax the Exterior

Washing the exterior of your vehicle before approaching a dealership for a trade-in helps provide the appearance that you provided upkeep to the vehicle over your ownership. A professional car wash is an ideal place to take your vehicle before getting any evaluation of your vehicle done. No matter the type of car you have, getting a complete wax will help your vehicle shine and protect any touch-ups in the paint you may have recently done.

#### Top Off all Fluids

If you are thinking of trading your vehicle, getting a certified automatic to perform an oil change, transmission fluid flush and fill, and a coolant refill will increase the probability of a dealership’s interest in your vehicle. Dealerships and knowledgeable private party buyers will know how to check if your vehicle has been well maintained. Having all your fluids clean and filled indicates to potential buyers that you cared for your vehicle.

### Trade-In Advantages

Selling your car to a third party may seem an attractive and more accessible way to rid yourself of a problem car. Still, there are many advantages to trading a car you miss out on by opting for a third-party sale. The benefits to trading in your vehicle are optimized when trading it into the same dealership you are buying your new car; having a one-stop shop where everything is done in one place can ease the stress involved in getting rid of a used car into a new one. Suppose you have an older automobile with a list of problems. In that case, the advantages of a trade-in can far outweigh the disadvantages.

#### Simplicity

A car buyer’s most significant advantage of trading their old car to a dealership is how much simpler the process becomes. If you choose to sell your vehicle to a third party instead, you can plan on spending money on advertisement, meeting with potential buyers, and the overall value of your vehicle decreasing by adding miles for test drives and meeting locations.

Trading your vehicle is done in a dealership building, offering air conditioning and one-stop buying. The sales associate at the dealership may haggle with you a bit, but not as much as a potentially interested third party that will attempt to lowball you, especially if your vehicle has issues.
Trading in your vehicle also simplifies your experience by the dealership taking responsibility for all of the paperwork necessary in vehicle transactions. The dealership will deal with the local DMV for the transfer of the title and all other paperwork required when buying or selling a car.

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#### Loan Pay Off 

Even if you still owe on your current vehicle, you can trade it into a dealership as a down payment for a new one. As a general rule of thumb, dealerships will pay off the remainder of your loan amount upfront and can apply the difference as a down payment on your new vehicle. The dealership will acquire the title of your old vehicle from the lender and deal with all the paperwork for you, making it an ideal place to get rid of your old car. This situation is only for consumers who owe less than the remaining financing amount and is referred to as positive equity. This is called negative equity for consumers who owe more than the vehicle is worth. However, trading in a negative equity vehicle is often still possible.

#### Potential Tax Savings

Trading in your vehicle instead of selling it to a third party can save you a lot of money in sales tax. Traded vehicles’ values are deducted from the total cost of your new vehicle, meaning you end up paying less on the sales tax for your new vehicle. The sales tax saving potential often surpasses what you would have made attempting to sell your vehicle to a private party. However, sales tax laws differ from state to state, so you should check your state’s vehicle sales tax laws before deciding to trade or sell.

### Final Thoughts

The basic rule of thumb for knowing if it is best to trade in your vehicle or to sell it to a private party is to visit your local dealership and get a trade-in quote. Once you know what a dealership is willing to offer you in trade-in value, compare their quote to what similar used vehicles are selling for in your area. 

Trading a vehicle could be the best way to get a problem vehicle out of your hair. If you are already in the market for a new car, having the dealership handle all of the paperwork in one transaction, especially in a vehicle trade, is well worth it. A dealership is in the best position to offer you the highest value for an older vehicle or a vehicle with multiple problems. Lastly, a dealership trade-in also lets you know that all paperwork will be handled legally and on time.

Using your old car as a trade-in for a new one has some advantages and is easier than selling it private party. Look out for a few things if your old car has problems.

Trading In a Car with Problems - What to Expect

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