Trading in your car is a great way to upgrade your vehicle while saving you money and time trying to sell it on your own. Dealerships make this easy by appraising your vehicle for its worth and subtracting that cost from the new vehicle expense. If you're due for a vehicle upgrade, read on to see how trading in a car could be your next move!
How Do I Trade In My Car?
Car dealerships make trading in your vehicle super easy by purchasing your old vehicle and putting the vehicle value toward your new car. Trading in a vehicle is a smart option when financing a new car because it will lower your loan amount or help you with your down payment. The first step to trading in your vehicle is to research the value of your car before you bring it in. You can use websites like Kelly Blue Book or Edmunds. Honorable car dealerships will give you a fair deal – but it's still good to have an idea of how much your car is worth before going into the dealership.
Trading In A Car That Is Not Paid Off
It is absolutely possible to trade in a vehicle that is not paid off. If your car is worth more money than you owe on it, you can use the difference toward the purchase of the car you are wanting to buy. If your car is worth less than what you still owe, you have negative equity or are "upside-down" on your loan. You can still trade-in your vehicle, you will simply have to pay the difference between the trade-in value and loan balance. You can contact your auto loan lender to find out your payoff amount (but note that the payoff amount may be slightly more than your remaining balance).
The Benefits of Trading In Your Vehicle at a Dealership
Trading in your old vehicle to a dealership is the easiest way to sell your car because the dealership will take care of all cleaning, marketing, and title transfer—saving you considerable time and hassle. You may make less instant cash with this option, but you will save considerable time and hassle in the long run. If you already have a car in mind that you are purchasing from a dealership, trading your old vehicle in will lower the cost of your new car and your monthly payment.
Whether you’re ready to trade your vehicle in or just looking at your options—be sure to take care of your vehicle by bringing it in for regular maintenance, oil changes, and tire checks. When you take good care of your car, you are far more likely to make more money if and when you try to trade it in.
If you need help understanding how to trade-in your vehicle, contact us today. Our knowledgeable car representatives are here and happy to sit down with you (virtually or in-person) to discuss the trade-in options that are best for you.
Don't want to come in? We'll come to you! Contact us today to schedule an at-home service pick-up. We’re here to keep you and your car safe, healthy, and on the road!
- Your friends at Bob Penkhus