Are you thinking about swapping out your older vehicle for a newer one? If so, you may want to think about trading your current vehicle in rather than selling it outright. Besides the fact that trading your car saves money, there are several other reasons to give thought to going the trade route rather than any other option you could be considering. Ready to learn more?
Save on Sales Tax
Depending on where you live, the sales tax involved with buying a vehicle can make you feel like you’re trying to purchase a luxury vehicle rather than a mid-priced sedan. By trading in your vehicle when you’re ready to buy something new, the only sales tax you’ll pay is the difference between the purchase price of the new vehicle and the overall trade-in value of your current vehicle.
Save Yourself Some Time
While technology has made it easier to sell a car on your own, there’s no disputing the fact that handling this task can take you longer than you’d like. Even if you manage to find several interested buyers, still the fact remains that they may make lowball offers or find the smallest reason to knock down your asking price. Negotiating back and forth can take hours or even days, and even then there’s still no guarantee that you two will come to an agreement. Trading in your vehicle can save you a lot of time and frustration.
You Have More Options for Financing
It would be great to save up all the money you need to buy a new car outright, but chances are that you’ll need to look into financing to drive off the lot with a brand new vehicle. Even if there are several financing options available to you, you may feel as if none of them are the perfect fit for you. One way to increase your risk of landing the ideal financing option is to trade in your vehicle.
You Don’t Have to Save Up a Large Down Payment
Circling back to saving up money for new wheels, it can take a while to save up a sizeable down payment to reduce the amount you have to borrow as well as the monthly cost of your car loan. By trading in your vehicle, you beef up your down payment, making the most of what you’ve already invested in your current car to lower the overall cost of a new vehicle.
Maximizing the Value of Your Current Vehicle Doesn’t Have to Be Difficult
For all the benefits of trading in your vehicle, you’ve got to make sure you take steps to get as much value as possible from your current car. For instance, tending to minor, inexpensive repairs can net you a major return on investment. If you can’t afford those repairs, you can at least get an estimate of how much those repairs will cost so you’ll have some bargaining power should the dealership start deducting from the value of your trade in for the cost of repairs.
Something else you can do to make your current car be viewed more favorably when it’s time to trade it in is give it a good washing and take care of the interior. While your car may be several years (or decades) old, there’s no reason it can’t look as if it just rolled off the showroom floor.
Finally, do some research into what your vehicle is most likely currently worth. Dealerships will have this information, and you need to know whether you’re getting as good of a deal as you may think you are. You don’t want to later learn that you left hundreds of dollars on the negotiation table.
Save Money on Car Insurance Premiums
Car insurance is something that you may not like paying for every month, especially if you feel you’re paying too much for your current policy. If you sell your vehicle on your own, you have to keep paying for premiums until you successfully find a buyer, which can quickly run up in time and cost. By trading in your vehicle, you immediately knock that vehicle off your insurance policy.
Think twice before deciding to sell your vehicle on your own when you’re looking to buy something new. The right knowledge and strategy can keep you from a major headache and disappointment.