Tales from Sales: 4 Must-Know Trade Tips

“Here’s what I think of this number!” I exclaimed in an overly dramatic fashion, hurling the little black notebook into a corner garbage can. The customer was upset with the value placed on their current car and I had decided theatrics were necessary in order to save the deal. My intent was to downplay the low Black Book Value on their car and make our number look more appealing. In any event, assessing a trade-in value is often a Herculean task.

Tired pickup trucks with worn suspensions having suffered a lifetime of work. Old sedans with sagging headliners and air conditioners that have long wheezed out all their Freon leaving the airflow similar to that of a bronchitis patient blowing at you through a McDonalds straw. Poor paint. Busted wheels. Sometimes, people are getting rid of their car for a reason.

It's a hard day when the customer’s attachment to a vehicle far outstrips its actual worth. Offer a lowball amount and a guy can find himself on the defensive, having effectively insulted not only the car but also the owner. I recall one person who was convinced that his extremely ripe and, um, agricultural twelve year old Volvo 240DL was worth five figures.

“That car cost $50,000 when it was new!” he huffed while sitting across the desk from me in my 6x6 office. He was clearly ignoring the fact that the DL was far from $50k new and his particular example was ill kept with close to 300,000 miles.

“Sir, here’s the number I can realistically offer for your car. I’m sure it has given you years of fine service.” I said this in the most compelling of tones. Truth be told, I secretly wanted to toss him the keys and invite him to explain the busted headlight, mismatched tires, and poor alignment. I persevered and got the deal, only because there were hefty incentives on the model at which he was looking.

On most new cars, dealers have money somewhere to add into a trade value in order to pacify a customer. For example, if there is a $2000 incentive to clear out the 2012 models, it’s entirely possible to add that money onto the trade value instead of subtracting it from the sticker price of the new car. It's all clearly explained to the customer, and they certainly benefit from the incentive, but the actual value of the trade has increased not one bit.

Do your homework. Almost every new car manufacturer has a comprehensive Build & Price tool on their website. If you’re shopping for a car, read it. All of it. Know what’s on offer and use that knowledge to your advantage when you’re squaring off at the dealer.

Learn to use soap and a vacuum. You may have been told that the cleanliness of your vehicle does not significantly affect your trade in value. It does – sometimes significantly. I vividly recall taking an SUV on trade in which the used car manager refused to sit, such was the level of filth. Does anyone think the customer got top dollar in that instance? A $10 car wash will generate a net profit. A $60 detail job will net even more.

Know your car – and know its history. Sales folk know that the customer is probably looking on while their trade is being evaluated. The dealer may put on a show of discovering paint scuffs and balding tires. Ignore this. Keep your service records and flaunt them to what will be an increasingly wary and alert sales rep.

Focus on bargaining the price of the new car, then talk about your trade. Treat them as separate entities. Every car is worth something to somebody; even the sorriest econobox has some value. Tossing black books into garbage cans, whilst entertaining, is not always required to get the maximum value out of your car.