## Trading in a Car with Problems - Top Tips

Dealers could still take your car as a trade-in even if it's in less-than-perfect shape for a used vehicle. They may not keep it on their lots to sell themselves, but trading your older automobile for a newer one in better condition may be a more viable option than you think. However, there are times when it's worth considering the cost of the car's problems. 

You can trade in your vehicle for a new car, but it's worth considering a few things. Some car dealerships will be happy to make a trade, even if you have a non-running vehicle that requires significant repairs. Still, you must set reasonable expectations when you finally take your car to the dealership.

A dealer will inspect the car themselves to assess its trade-in value. It may not always be what you want, but there is often room for haggling. Whatever trade-in offer they give can be used as a down payment for a new vehicle, and a trade-in provides tax savings over trying to sell your used car yourself.

There's a lot to weigh, though, when considering handing over a problematic vehicle. 

## Is it Possible to Trade in a Car with Problems?

In most cases, you can trade in your existing car for a new one, even if the vehicle has extensive mechanical problems. Dealers will often take cars they cannot sell to a scrapyard or a junkyard and sell the vehicle as a junk car for parts. A few new car dealers put problematic cars back on the car lot because it's not worth it for them to fix anything but a few dents and, in most cases, send these vehicles to auto auctions.

Even vehicles with significant issues, such as a blown head gasket, suspension problems, overheating issues, or even a fully blown engine, usually have at least some parts that can be salvaged and sold to other buyers for their own repair work. Dealerships can often profit from an older car that requires repair work.

Some dealerships may not take trade-ins on vehicles that require significant repairs, so it's worth checking the dealer's policy on trade-ins and whether they accept junk cars. It varies from region to region and brand to brand, so you'll likely have to try a few places.

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## How Do You Trade in a Problematic Car?

You could take your car to a dealer to be assessed and get a trade-in offer. The best way to do this is to research and prepare yourself and your vehicle for a potential trade-in.

__Check Your Vehicle's Value__

Whether you have a fully functioning vehicle in excellent condition or barely run, it is important to know its market value to get a competitive offer wherever you take it.

Kelley Blue Book (KBB) has an excellent tool on its website that will give you an idea of what your vehicle is worth in its present condition. KBB gives estimates of trade-in values and private-party sales based on a vehicle's condition.

You can always take a picture of your car's trade-in value according to KBB or print it out to bring to a dealership, but it is also a good idea to have a minimum value in mind. Shop around at different dealers to see what they'll offer, and if you cannot hit your target, it may be too high, so adjust it accordingly.

__Prepare the Car__

Dealerships will take a dirty vehicle, but doing what you can to make it as presentable as possible will often net a better price than doing nothing before your visit.

Vacuum the interior and give the exterior a thorough wash. Minor maintenance tasks such as replacing lights, an oil change, replacing the cabin air filter, filling the washer fluid, and replacing the engine air filter will all help. If the car needs more extensive repairs, doing the small things shows the dealership that it is not a total mess and that you performed the necessary upkeep.

Even the best-kept vehicles will eventually require some repairs, and a good rule of thumb is simply making the car as presentable as possible.

__Get It to the Dealership__

Getting the car to the dealership is easy if it runs. If you have a non-running vehicle, you should visit the car dealership in advance to see if the business will accept it at all. If so, you'll have to pay the towing bill to get the car there so they can assess it.

__Disclose the Car's Problems to the Dealership__

Whoever inspects the car will doubtless discover at least some of its problems, but it will be helpful if you provide a list of known issues so they can accurately assess its value.

It's best to disclose any known issues to the dealership upfront because hiding them will likely cause problems later.

__Negotiate With the Dealer__

As with any new car purchase or trade-in, there will likely be some haggling between you and the car dealer. That's perfectly normal, but knowing your vehicle's market value will be helpful. Whatever you can get from your trade-in can be used as a down payment on a new car.

The feeling of getting rid of a car that has given you nothing but ongoing repair bills can be a relief, but you need to take care of yourself as well. It's especially true if you have a loan on the car and you have negative equity in it. Sometimes, a trade-in is the only viable option if you have the costs of repairs plus a car payment on your plate. A higher loan is never ideal, but dropping constant repair costs out of the mix could be worth it.

However, there's no solution for trading with automotive dealers such as CarMax and Carvana. What they offer you is what they offer you  — take it or leave it. While you'll get a check in a reasonable amount of time, it's worth considering how much is left on the vehicle's loan, if the repairs are reasonable, and if you'll get your money back by doing them.

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## Top Tips for Trading in a Car with Problems

__Evaluate Your Situation__

Before even considering trading in your car, you should examine your finances, goals, and needs. A vehicle with constant mechanical issues and an outstanding loan is far from ideal. In this case, trading in your car and buying a more reliable vehicle may be the only viable option.

You may have an older vehicle that is special to you in some way, but your financial situation is making it difficult to pay for the repairs your vehicle needs. Although unfortunate, you may need to consider trading in that vehicle. Only you know what your limitations and expenses will allow.

__Compare Your Options__

Set personal guidelines and goals to compare your options.

Trading in your current vehicle may generate less money than if you were to sell your car yourself. A dealership can act as a one-stop shop, though, and allow you to get rid of your used car and get a new one without taking extra steps. The time you save may outweigh the monetary disadvantages of a lower trade-in value than a private sale.

You may receive an excellent offer that you cannot pass up. In that case, selling the car directly to the interested party would make sense rather than trade it in.

Car buyers in good financial shape may opt to trade in a car with problems because they know there is a particular model a dealership has that they want. Others may be fed up with the repair costs and head straight to the junkyard.

Trading in a car with problems is a choice you have to make, but having a roadmap laid out will help you work through all of your current options to find the best one.

__Do Not Underestimate a Dealership's Buying Power__

Some dealerships may refuse to accept a car with problems, but many will. When demand for used vehicles is high, you may get a surprisingly good trade-in offer. A desirable car may be a great bargaining piece, even with existing issues.

If you are considering trading in a vehicle with problems, the best thing to do is ask the dealer. The worst that can happen is a dealership telling you they cannot take the car. That will free you up to check out other car dealers or decide to junk it simply.

__Consider Selling It to a Specialist__

A last resort could be selling your car to a shop or used car dealer who specializes in your type of car. That's especially the case for specialized segments such as sports cars, rare and collectible cars, and brands such as BMW, Mercedes-Benz, Porsche, and even Jeep or Lexus.

They might find hidden value in it because it's a rare version of the vehicle, a one-year-only special edition, or a model that was once popular but has mostly vanished from the roads. Dents won't deter them, and even major issues could be fixed by buying a used engine or doing some things such as reupholstering the interior or getting a decent price on a good paint job. It's a long-shot solution in some areas and requires more research than many consumers are used to, but you'll get a check and can usually move on without putting any more money in the car.

## Final Thoughts

Trading in an old car with problems is hardly an easy decision. Having one might be even more difficult. Whatever your case, it's not a fun situation to be in, especially if your current car's trade-in value is essential to buying a new car.

Don't panic, but give every route to the trade-in process its due. It'll pay off in the end.

Using your old car as a trade-in for a new one has some advantages and is easier than selling it private party. Look out for a few things if your old car has problems.

Trading in a Car with Problems - Top Tips

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