{"id":8331,"date":"2022-01-17T20:16:41","date_gmt":"2022-01-17T19:16:41","guid":{"rendered":"https:\/\/businessfinancenews.com\/?p=8331"},"modified":"2022-01-17T20:16:51","modified_gmt":"2022-01-17T19:16:51","slug":"how-does-trading-in-a-car-work","status":"publish","type":"post","link":"https:\/\/businessfinancenews.com\/loans\/how-does-trading-in-a-car-work\/","title":{"rendered":"How Does Trading In A Car Work"},"content":{"rendered":"\n
Trading in your car is a fast way to get rid of your old vehicle at the same time you buy a different one. But there are some important things to know about how to get the best deal before you start the process.<\/p>\n\n\n\n
The biggest advantage of trading in a car \u2014 versus selling it yourself \u2014 is that a car dealer will subtract its value from the purchase price of your new car. A dealership employee will look at it, drive it, and estimate the amount of money they are willing to pay. This offer is contingent on your purchase of a different vehicle.<\/p>\n\n\n\n
The catch is that it\u2019s often difficult to get the dealer to give you the full value of your old car. It\u2019s even trickier if you still owe money on your old car.<\/p>\n\n\n\n
Trading in a vehicle isn\u2019t the right move for everyone. You can almost always get more for your car if you sell it on your own, but it will take longer. To find out how much your car may be worth in either scenario, check private party and trade-in values from Kelley Blue Book<\/a> or Edmunds<\/a>.<\/p>\n\n\n\n Here\u2019s how to know whether you should sell your vehicle to a private party or trade it in at a dealership:<\/p>\n\n\n\n Pros<\/strong><\/p>\n\n\n\n Cons<\/strong><\/p>\n\n\n\n There are a few things you can do to get the best possible deal when you trade in your car.<\/p>\n\n\n\n Keep the trade-in deal separate from the purchase of your new car.<\/strong> Get trade-in offers from more than one dealership.<\/strong> Take a break to think about the offer before you sign paperwork.<\/strong> Know how much your car is worth.<\/strong> Clean your car before taking it in for an appraisal.<\/strong> When it\u2019s time to trade in your vehicle, there are a few red flags indicating that you should move on.<\/p>\n\n\n\n The dealership has a reputation for selling low-quality cars at high prices<\/strong> You feel intimidated or uncomfortable.<\/strong> The salesperson refuses to discuss your trade as a stand-alone deal.<\/strong> The salesperson might also wrap any negative equity from your trade-in into the new loan offer. While you may find the situation alarming or confusing, chances are the finance manager will take it in stride. Nearly one-third of drivers are underwater on their car loan.<\/p>\n\n\n\n Combining the debt from your old car with the loan for your new car may seem like an easy solution, but it can make it difficult for you to get out of debt. For every $1,000 you add to your new loan, your payment will go up by an average of $20 per month.<\/p>\n\n\n\n If you are upside down on your current car loan, you have options:<\/p>\n\n\n\n If you do decide to trade in a vehicle that you still owe money on, rolling the old balance into the new one, choose the shortest loan term you can afford. Look at the financing closely, and don\u2019t sign anything until you fully understand the terms of your new loan.<\/p>\n\n\n\n The key to a great car-buying experience is choosing a dealership where you can work with a respectful and honest salesperson, and have the freedom to choose the financing option that works best for your personal situation.<\/p>\n\n\n\n The interest rate you\u2019ll pay on your car loan has a significant effect on your monthly payment and your total cost of ownership. It\u2019s smart to shop around for auto loan rates. Here are a few of the common mistakes people make when they need a car loan<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" How Does Trading In A Car Work Trading in your car is a fast way to get rid of your old vehicle at the same time you buy a different one. But there are some important things to know about how to get the best deal before you start the process. How does trading in … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[4],"tags":[],"yoast_head":"\nHow to get the best trade-in deal<\/h3>\n\n\n\n
If you focus on one part of the deal at a time, you\u2019ll have a more complete understanding of whether the dealership will pay a fair price for your trade-in. Let the salesperson know that you prefer to come to an agreement about your trade-in value before moving on to negotiating the purchase price of your new vehicle.<\/p>\n\n\n\n
Having more than one offer will help you negotiate a better deal. Talk with at least two dealerships where you feel comfortable buying a new or used vehicle to replace your current one. Be wary of a salesperson who tries to talk you out of shopping around.<\/p>\n\n\n\n
Trading in a car isn\u2019t something that most people do more than a few times in their lives. The process can seem overwhelming. Since there is probably a large amount of money changing hands, it makes sense to take some time to think about all aspects of the deal. Take a break for lunch or go for a drive and make sure you feel comfortable before moving forward.<\/p>\n\n\n\n
As we mentioned earlier, use online pricing guides to get an idea of what a fair offer looks like. You have the right to expect a decent price for your trade-in, but you also need to have a good understanding of the market value of your vehicle in its current condition.<\/p>\n\n\n\n
Surprisingly, many people don\u2019t consider the importance of presenting their vehicle in its best light. Wash and detail your car. Remove personal items, including bumper stickers and magnets. If you can afford to fix any small problems, do so. Bald tires, dirty or low oil and burned-out lights could be a signal to the appraiser that the car is not well cared for, triggering a low-ball offer.<\/p>\n\n\n\nWhat to watch out for when trading in a car<\/h3>\n\n\n\n
Avoid buy-here-pay-here car lots. Even if you want to buy a used car and you have concerns about your credit, it\u2019s better to shop around for auto loans<\/a> and buy from a reputable dealership.<\/p>\n\n\n\n
Trading in a car involves negotiation, which naturally makes some people feel ill-at-ease. If your salesperson or vehicle appraiser is impolite or insulting, move on.<\/p>\n\n\n\n
If you want to understand the advantages of trading in your vehicle, you must know the net trade-in value. If your salesperson combines the trade with your new car price and offers only one number, ask them directly how much money you\u2019ll get for your vehicle.<\/p>\n\n\n\nFind out how your new loan treats negative equity<\/h3>\n\n\n\n