What You Need to Know About Trade-In on Cars
Curious about whether trading in your car is a good idea? Learn more about how vehicle trade-ins work, the benefits of a trade-in, and some tips for getting your trade-in together before you head to Blvd Motorcars to buy a new car.
How Does A Vehicle Trade-In Work?
A vehicle trade-in is a way to get rid of or sell your existing vehicle and upgrade to a new or used car,
When you bring your vehicle in for a trade-in, the dealer determines the vehicle’s value based on the market pricing and condition. If you have an existing auto loan on your old car, the dealer will pay it off once it is traded
To get started, you bring your vehicle to a dealership for an appraisal based on its condition. mileage, and market demand
Based on that appraisal, the dealer will make you a trade-in offer on your vehicle. If you agree on the price, you can hand over the title and the keys to the dealer and reap the trade-in benefits. The dealer then deducts the trade-in value from the cost of your new vehicle.
Before you complete the deal, consider doing the following:
- Ask about the payoff amount for the loan
- Consider doing repairs
- Getting an estimate
- Have your vehicle detailed
- Collect paperwork, including service records
Benefits of Trading in Your Vehicle
Should you trade in your vehicle? Before you make a decision, here are a few benefits you might not have considered.
Hassle-Free Selling Experience
At some point, you will have to sell your existing vehicle. It will stop working on you, or you will need to upgrade to something more reliable. The question is, how will you go about getting rid of it?
The first option is to sell it privately. As the vehicle owner, you hold the title, which means you can sell it to whomever you like, for however much you prefer. However, selling a car isn’t as easy as exchanging paperwork and money.
You’ll have to clean the car, list it for sale online and in directories, potentially even pay for ads, and screen out serious inquiries about your vehicle. You’ll also deal with test drives, answering questions about the vehicle’s condition, and negotiating with interested parties.
Reduces the Amount You Finance on A New Vehicle
Another benefit of doing a vehicle trade-in is savings. If you want to upgrade your vehicle, a trade-in is a great option to save money on your new loan
Depending on the condition of your existing used car, you could save thousands on your new loan. And instead of having a down payment, you can offer the dealership a trade-in.
This will also save you money on interest and other fees for your new vehicle loan
Minimizes The Likelihood of Costly Vehicle Repairs
As your vehicle ages and more miles are put on it, you will likely face costly repairs. You can avoid this situation by simply upgrading your car.
It’s easy to get into the trap of thinking you’re saving money by holding onto an aging vehicle, but the truth is, it could end up costing you money.
If you’re worried about maintenance and repairs, there is no better time than the present to consider a vehicle trade-in.
My Car is Financed--Can I Still Trade It In?
What if I want to trade in my vehicle, but it’s still financed–you might be wondering. You can still trade in your car even if it’s not paid for. Many individuals go this route if they want to buy a new vehicle quickly.
For example, if you have a $10,000 loan and still owe about $2000, you have a net $8000 of positive equity that can be applied to the new car purchase amount. However, you will still have to pay the dealer the difference owed.
You can either pay the dealer the $2000 in cash or ask to have it added to your new car loan. Trading a car in when you still owe on the vehicle can be expensive, so be sure it works for you before considering it.
Should I Trade in My Vehicle?
Trading in your vehicle, in general, is a way to reduce how much you’ll need to borrow when buying another car, but if you have an existing balance on your loan, you may want to reconsider this as an option.
Some other things to think about before trading in your car include
Age and Mileage
If your car has low mileage, it could get you a better trade-in value than higher mileage. Its age, as well, may affect the trade-in price. The older it is, the less you can expect to be offered in value.
Condition
Cosmetic and mechanical damage influences the final trade-in value of your vehicle. Consider how much damage your vehicle has done to it before you think about trading it in.
Loan Status
As mentioned above, if you still owe money on your car loan, you may want to consider the payoff amount before considering a trade-in. But if you owe less than its trade-in value, it could still be a good option.
Affordability of a New Payment
Also, think about the average cost of a new car payment. Most of them tend to be higher than used car payments. Make sure you can comfortably afford the monthly payment before jumping into a new auto loan.
Yes, I want to trade my vehicle at Blvd Motorcars!
Congratulations, you’re ready to trade your car in at Blvd Motorcars in Tujunga, California! Here’s what you need to know.
Here's how it works:
Step 1. Fill out our form. Use our form to jumpstart the trade-in process.
- Step 2. Receive an estimated appraisal. Once we have the necessary information, we'll send you an appraisal estimate for your car.
- Step 3. Make your decision. If you approve of the amount we appraise you for, come in, and let's get you into a new vehicle.
