The “right” way to do a trade-in.

It is simple, but you need to follow these steps to know what sort of deal you are making.

#1.  Shop and discover what you want, what you can afford, and where you feel most comfortable in buying.  See what their return policy is.  Find out about any warranty or trade-back policies.

#2.  Find out the amount you can get outright, for immediate payment, on the item you wish to trade-in.  This is the item you no longer wish to own.  Shop around until you are satisfied that you understand the situation no matter how little the offers may be.  Now that part is done.

#3.  Determine the final item you wish to purchase.  Do your research to discover the best asking price for the item and make every effort to have a vendor who you feel most comfortable with actually do the deal with you.  Even if it costs a few bucks more, relationships and emotions have value that can’t be exactly measured.  Be sure you are at the price which totally makes it work for you.  Price is important, but not the only consideration.

#3.  From out of nowhere, pull out your trade-in and ask what the item is worth in order to make the deal.  You already know exactly what you can sell it for outright, and you also know exactly what you must pay.  If your vendor wants to over allow a bit in order to tempt you into the sale, now is the time for you to get the benefit of trading in by making the vendor give you a “liberal” trade-in. A liberal trade-in will result it you getting the new item for less.  They may or may not wish to trade, but you know exactly where you stand and when to say yes or no.  If the trade-in benefits the bottom line cost, then go forward, if not, you can decide to sell to your other bidder or not to make the trade.

One must be aware that if any mention of a trade-in is made in advance of the final asking price on a new item, there may be no way to get to the exact asking price.  If you don’t have the asking price settled, then any trade-in allowance is a mystery that you cannot later figure out and you will have more or less ruined the potential extra value of the trade-in.