How to get the best trade-in value for your car
Trading in your car can help you save on the cost of a new one but the value can be different to selling it yourself.
Key takeaways
Compare trade-in and private sale options to understand where you’ll get the best value before making a decision.
- Prepare your car for trade-in by cleaning, fixing small issues, and keeping a full service history.
- Shop around and negotiate with multiple dealers to ensure you secure the best overall changeover price.
Trading in vs selling privately
When you’re buying a new car and want to get rid of your current vehicle, there are 2 main options available:
- Trade the car in at a dealership
- Sell it privately
Trading in your car is a quick and convenient option that can help you to negotiate a better sale price for your new car. Instead of going through the hassle of trying to find a buyer, you can take care of selling one car and buying another at the same time.
But trading in you car won’t typically get you the best price compared to selling it privately. A private sale gives you more control over the price, which also means you have more buying power when searching for your next set of wheels.
On the downside, selling privately can be a lot of hard work. From taking care of maintenance issues and getting the necessary roadworthy certificates to the often-painful chore of dealing with potential buyers, private sales can be time-consuming and stressful, and sometimes it’s just not worth the effort.
Which option is right for you?
- Consider selling privately if your car is new or highly sought-after. This should help you get a fair price.
- Consider trading in if your car is a common model, needs some repair/maintenance work done or has a lot of kilometres on the clock. This will help you avoid the additional cost of preparing the vehicle for sale privately, as well as the time and effort of actually finding a buyer.
Finder survey: How do Australians of different ages finance a new car?
| Response | Gen Z | Gen Y | Gen X | Baby Boomers |
|---|---|---|---|---|
| My bank | 43.82% | 35.6% | 37.5% | 32.67% |
| Unsure | 26.97% | 26.36% | 36.51% | 46.31% |
| Cheapest rate on the market | 15.73% | 27.17% | 21.05% | 19.03% |
| A big 4 lender | 12.36% | 10.05% | 3.95% | 1.7% |
| Peer-to-peer lender | 1.12% | 0.82% | 0.99% | 0.28% |
Source: Finder survey by Pure Profile of 1113 Australians, December 2023
Finder's survey shows Baby Boomers are the most cautious when financing, with nearly half (46%) unsure where to get the best deal. By contrast, younger generations are significantly more likely to research online or approach their banks. Understanding how lenders compete for different age groups can help you negotiate financing and trade-in deals together
Getting the best trade-in price
If you decide to trade in your vehicle, there’s plenty you can do to ensure that you get the best possible price from a dealer. In fact, you can start taking steps to maximise your trade-in deal before you even think about upgrading to a new car.
How to get the best car trade-in deal: Before you think about selling
According to the ABS Motor Vehicle Census (2023), the average age of passenger vehicles in Australia is 10.9 years. Older cars typically attract much lower trade-in prices, reinforcing the importance of regular maintenance and timing when deciding to trade in.
- Get it serviced regularly. Book your car in for regular servicing at the manufacturer’s recommended service intervals. Make sure you record each service in the car’s logbook so you can provide it to the next buyer as proof the car has been well maintained.
- Stay on top of repair and maintenance issues. If there’s a funny noise in the engine, get it seen to by a licensed mechanic. If you’re involved in a bingle, get the car repaired by a licensed and reputable smash repairer. Ensure that you regularly clean the car inside and out, so it will still be in the best possible shape when it comes time to sell.
- Drive it like you own it. If you look after your car when you own it, you’ll increase your chances of getting a better trade-in price. So don’t thrash your vehicle to within an inch of its life and then expect a premium price from the dealer. Treat it right and you’ll reap the benefits in the future.
Preparing your car for trade in
Some new car buyers go to a dealership without thinking about how their current vehicle looks. If it’s scratched, dented or even dirty, it’s not going to look like an attractive trade-in prospect to the dealer.
So, it’s important to get your car into the best possible shape before stepping up to the negotiating table.
- Wash your car. First impressions count, so give your car a thorough wash to make sure it’s gleaming from every angle. A quick run through the automatic car wash at your local servo often isn’t enough, so you will need to give it a good scrub yourself.
- Clean the interior. It’s also essential to give the inside of your vehicle a thorough clean. Give all surfaces a wipe down to eradicate any stains, and remove all rubbish and personal items from the car.
Best time of the year to trade in a car
Timing matters when trading in.
Dealerships tend to offer better deals during end-of-financial-year (EOFY) sales or when new models are released, as they want to clear stock. Trading in a car under 5 years old usually yields the best value, as depreciation slows after the steep drop in the first few years. Checking market conditions on sites like Carsales before trading in can also give you leverage.
Negotiating with the dealer
This part of the process can be hard, especially if you want to get your new car as soon as possible. But keep in mind that the dealer is a professional negotiator and will do whatever they can to get the best possible deal for themselves. So, some tips you can use to help get the best possible trade-in deal include:
- Do your research. The knowledge of how much your car is worth will give you power at the negotiating table. So try to find out how much you can expect to receive when you trade in. Automotive data services like RedBook and Glass’s Australia can provide you with an online valuation of your vehicle for a fee of around $20-$40 (or more). Depending on the service you use, this could include private, dealer and trade-in values. You can also look at private sale prices for your make and model, remembering that trade-in values will usually be lower than private sale values.
- Know the tactics. Dealers are experts when it comes to buying and selling cars, so familiarise yourself with some of the more common negotiating tactics. For example, don’t be surprised if the dealer claims your car won’t be easy to sell, or that they’re doing you a favour by taking it off your hands – these are tactics designed simply to maximise their profit on the transaction.
- Use your own negotiating skills. Instead of laying all your cards on the table straight away, you might want to negotiate on the sale price of the new car separately to the trade-in price. Once you’ve reached a reasonable purchase price for the new vehicle, tell the dealer that you’d also like to trade in your current car and that the right price will seal the deal.
- Shop around. Don’t be afraid to shop around for a better trade-in deal. You might be surprised just how much more you can get from a different dealer, so look elsewhere if you’re not happy with the price offered.
- Focus on the changeover price. One final, all-important tip to remember is that the trade-in price you got for your vehicle does not determine whether you got a good deal. You need to look at the changeover price for your new car – that is, the purchase price of your new car minus the trade-in price of your current car. While one dealer may offer the best trade-in price, if their price for a new car is more expensive then they may not offer the best deal overall.
Ready to trade-in but need finance? Here are some products you can compare today
Compare other products
We currently don't have that product, but here are others to consider:
How we picked theseFinder Score for car loans
To make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.
Frequently asked questions
Sources
Picture: Shutterstock
More resources on Finder
Ask a question
More guides on Finder
-
Green Car Loans Australia
Some lenders offer a better deal if you get a loan for an eco-friendly car. See how they work and compare car loans here.
-
Car loans for pensioners
On a pension but need a new car? There are still many choices if you know where to look.
-
Compare car loans for classic cars
Want to buy a classic car but don't have the ready money? There are still financing options available for classic vehicles. Find out what loans you have to choose one and which one will work best for you.
-
Tesla Superchargers Map: Where you can charge in Australia
Find out the extent of Australia's Tesla Supercharger network with our complete map of every charging station.
-
IMB car loans
Find out how to take advantage of competitive rates, no monthly fees and an easy application all while getting the finance you need with IMB loan options.
-
People’s Choice Credit Union secured and car loans
People’s Choice offers competitive loans with pre-approval, rate discounts and other features to help put you behind the wheel of a new or used vehicle.
-
Should I refinance or pay my novated lease balloon payment?
If you've come to the end of your novated lease and you are left with a balloon payment, you might be wondering whether to refinance that into a personal loan or take on another novated lease.
-
First Option Bank Car Loans
Lock in a competitive rate for as long as five years with First option Bank – you can finance both new and used car loans.
-
BankSA Car Loans Comparison
BankSA offers a range of loans for your next car. If you're looking to finance a new or used car you can consider a secured or unsecured personal loan from BankSA, both with competitive rates. Compare and apply today.
-
Gateway Bank Car Loans
If you're in the market for a range of loans, Gateway Bank might have an offering worth considering. You can use your car as security and get a lower rate with both new and used vehicles, so compare and apply today.