Auto Trade-In

Buying a new car is almost always combined with selling your existing one. Trading in certainly represent a convenient and easy way to do that but is it the best one? And what about negotiating the auto trade-in, how to approach it? This article will try to give you more clarity on the subject and help you decide whether to trade in your used car or to sell it yourself.

Pros and Cons of Auto Trade-In

Advantages:

• Trading in your automobile is the easiest way to get rid of your present car. It is usually a hassle free transaction that doesn't take more than a day. Once the trade-in value is determined, this amount is simply deducted from what you pay for your new car.
• You avoid the expenses on roadworthy repair, cleaning and appearance renovation.
• You don't need to place any advertisements and pay for such.
• You avoid the need to arrange test drives.
• You won't have to fight legal battles in case your newly-sold car breaks down.

Disadvantages:

It is very likely to get a higher price for your trade-in as compared to selling your vehicle privately.

Yet, have in mind the lower sales tax that you would pay for your new car if you choose to trade in. You may trade your old car in for a lower price but still be financially at advantage due to the sales tax savings.

Auto Trade-In Value

When you decide to trade in your used automobile, the dealer will assess its condition, its mileage and age, and other factors and then determine the auto trade-in value.

It is very important to know what you car is worth beforehand. After all, in effect you are selling your car. By knowing the real value of your old car you will not allow to be tricked into accepting a deliberately low offer from the dealer.

A number of factors are considered when your car's trade-in value is determined. For example, features like air conditioning, power windows, CD player, etc., can increase the price, whereas factors like rust, high mileage, worn suspension, etc., can decrease the car's value.

You can get a rough estimation of the trade-in value by checking various reference books available at libraries, some banks and credit unions. You can also do that online by using a used car trade-in value appraiser. Remember, though, that those can give you just rough car value estimation, not an exact trade-in price.

Another option you have is to turn to a professional vehicle appraisal, of course in exchange for a fee. Or, you can simply go to three or four dealers, tell them that you are interested in selling your used car, get offers from each, and just average them to get a rough idea how much you will be offered for your automobile.

Once you find out your auto trade-in value, the decision whether to trade in or sell your car privately is yours to make.

The auto loan calculators and the information available on this site are intended to serve only as general guidance regarding auto loans. Since they do not take into account your individual circumstances, we cannot and do no guarantee their accuracy or suitability to a specific purpose. We highly recommend you to consider the appropriateness of any information to your objectives before acting on it, and encourage you to consult a qualified professional regarding you particular personal situation.

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