Pierre Money Mart Blog

Buying a car is really a series of transactions. Yet buyers tend to subtract what the dealer is giving them for their trade-in from what they’re paying for their new car. Then they say: “Hey, I’m getting a $42,000 car for $35,000!”

Actually, those buyers can’t take all the blame since that’s how the salesman presents it: as if that $7,000 is a gift, and they’re just doing you a favor by taking that old car off your hands.

Remember, they’re taking something of real value in exchange for that money. And you have the right to get as much as you can for your old car. Don’t allow the dealer to tell you what it’s worth.

You also have the right to pay as little as you can for your new car. But there’s no way you can negotiate both those things effectively if they’re attached because you won’t be able to see the numbers clearly.

Negotiate the price of the new car first. Get that number down to something you’re comfortable with. Then negotiate your trade in and get that number as high as you can, or if you still feel like it’s not enough, take the car elsewhere or sell it yourself.

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