Are you ready to replace your old car with a new one, but I don't know where to start? Changing a car is not just a turnkey. There are many things to know and do before you go to a car dealer. We can help you navigate the process easily and get the best car deals.
Step 1: find out how much your car is worth
A good place to know how much your car is worth is to find out how much similar cars sell in your area. We have a free tool to tell you the average price of similar vehicles. Keep in mind that this will show that your average selling price and the discount you get from the dealer may be different. The trade in value may be different because it takes into account the history of the car and how many renovations the dealer may need to make to resell it. Still, it's a great place to start your trade in journey.
The older a car gets, the less valuable it is - that's no surprise. But there are many factors that affect its value, including previous losses, the number of kilometers traveled and the location of the registration. A good way to keep your value intact is to maintain your car regularly. Please read our used car value guide to learn more about the value of used cars.
Step 2: know how much you owe
If you have already provided funds for your current car, or decide to buy it on a rental basis, you may have a balance owed to your current car. You may have a chance to transfer the money you owe to your next car, but that means your monthly payments are likely to increase. It is very important to know the remaining balance before entering the dealer. To get this information, just call the company that provides you with leasing or financing - it's going to be a different company than the dealer you buy your car, usually a financial institution.
Step 3: get your vehicle ready
Have you been putting off repairing some small scratches on your car? Do a thorough cleaning or even a detailed one? Doing small things for your car can increase how much the dealer can give you. That's not to say you need to go all out and overhaul your car, but a little elbow grease won't hurt.
Step 4: shop around to exchange the old for the new
Whether you do it yourself or online, it's important to find out which dealers are willing to provide service for your car. Some dealer websites even provide a free third-party evaluation tool (such as our Carfax Canada car replacement tool), which will give you a quick estimate of how much dealers may provide for it. Use these convenient tools to make some estimates for comparison. Our suggestion is to do your homework well, but ultimately find a dealer you trust and feel comfortable with, because it can make the whole replacement process faster and easier.
Step 5: negotiation
Now that you're ready, it's time to discuss how much your car will cost. It's important to know the history of your car because it affects how much it will trade at. If you are not sure what the car's past is, you can buy the Carfax Canada vehicle history report. This tool will give you a clear picture of your car's past, and then you can use the car's history to negotiate the best car deals. Learn the best way to negotiate.
Trade in tax credit
One important thing to note is that, depending on where you live, selling your car to a dealer can save a lot of tax on your next car. If you decide to sell your car privately, you will pay sales tax, but if you trade it for a dealer to buy a new car, the tax applies to credit and saves you money! Look at the regulations in your province, and remember that when you decide to sell your car to a private company or to a dealer. There are many other important steps to consider in the process of purchasing a "new car", including test driving the vehicle you are interested in and pre checking. To get a complete list, be sure to check out our best car deals buying guide.
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