Trading In an Automobile: A How-To Guide

One of the easiest methods to get an exact worth for your trade-in is to have it done by the car dealership. They know the methods and experience to get you the best value for your trade-in. However, we understand the # 1 inquiry most vehicle shoppers have regarding dealerships: why would a car dealership want to provide the highest value for your trade-in? Put simply, automotive dealers have two key goals: gaining your patronage and keeping your patronage. Purchasing cars, trucks, or SUVs is seldom a priority for personal sellers and privately owned car lots are not nearly as focused on repeat customers as car dealerships. So, giving a reasonable and honest value for your trade-in is always in a an auto dealer’s long-term benefit.

Most of the time you will not have an issue trading in a car, truck, or SUV with problems. there are exceptions to this rule. If your vehicle has had extensive damage and the insurance company considered the car, truck, or SUV a total loss, you may have problems trading it in.

Cars can be provided a salvaged title for reasons like a crash that required pricey and extensive repair work or if there was flood damage. At least your trade-in value will be reduced if your car, truck, or SUV has a salvage title and some car dealers will certainly decline cars or trucks with a salvage title at all. Be careful, your state’s laws might need you to inform the dealership of this info. The popularity of online vehicle history reports makes this information readily available, so be truthful.

The truth is, there is no magic formula for getting the highest amount of money when trading in your car, truck, or SUV. We do have a few ideas to aid you in maximizing your trade-in amount.

1. First, know the market worth of the vehicle you are trading in.
2. Let your sales expert know you have a trade-in you would like to get appraised, so they can work the numbers directly into the paperwork.
3. Finally, not all trade-in deals are produced equally. As an example, if the car dealer assesses a $7000 trade-in amount for ‘Car A’ then offers $5000 trade-in amount for ‘Car B’, the trade-in on ‘Car A’ is clearly worth more cash. However is it the very best deal? The answer is: perhaps. Dealerships will in some cases discount automobiles that have not sold quickly. If ‘Car B’ is moving at $2000 less than the appraised value, then the trade-in assessments on your car, truck, or SUV are essentially the same.

• Dealerships
• Private party
• Online dealers

While there are several options to select from, auto dealers provide the ease and purchasing power to get you a great deal on your trade-in.

In short, yes you can trade in your vehicle even if it isn’t paid off. The long answer is your trade-in experience will certainly differ considerably if you have positive or negative equity in your car, truck, or SUV. Let’s look at both situations:

Positive Equity:

This suggests the trade-in amount is more than the financed value of your car, truck, or SUV. The money leftover from the trade-in amount is then used as a down payment on the new vehicle. Example: You have a trade-in amount of $10,000 and your loan worth is $8000. In this scenario, $2000 would be put towards the down payment on the brand-new car

Negative Equity:

This situation occurs when the trade-in offer is less than the loan amount of your car, truck, or SUV. Not all options work in every circumstance; so it’s always a good idea to speak to your sales expert and allow them do all the leg-work for you.

New cars often have special deals or rewards affixed to them. A ‘leftover’ new vehicle from last year will typically have big motivations in an effort to make room for the existing models. If you have a great deal of negative equity, this might be the ideal opportunity at trading in your car. Make sure to consult the dealership’s finance manager to assist you with finding the best solution to your situation.

Down Payment

If your trade-in car or truck has negative equity, a cash deposit might be required.

Can I sell an automobile if the title is not in my name? The quick answer is: possibly. This is another subject that can be challenging, however the initial thing you need to do is consult your local DMV. Trading in a car or truck that is not entitled in your name might be prohibited, so it’s a good idea to know the legislations in your state. There are also legal situations where you might trade in a car not labelled in your name. Let’s look at all the circumstances where this may apply.

The Car or Truck Was a Gift:

You can sell your vehicle if it was a gift, but the title remained in another person’s name. Initially, you would certainly require the signature of the individual named on the title. Second of all, depending on regional laws you might need a legal record or power of attorney to complete the trade-in. Your best option is to consult with the regional DMV to know what is required.

Automobile Owner is Deceased:

If the vehicle’s owner has passed away, the administrator of the will should have the capability to sell the car, truck, or SUV for the estate. Again, check with the regional DMV to know the steps to finish the process.

There are a great deal of variables to take into consideration when you are considering trading in your vehicle and that is why it’s always an excellent idea to ask the car dealership’s financing manager inquiries. Any experienced financial manager would certainly appreciate the chance to respond to and resolve every one of your concerns. New and Certified Pre-Owned dealerships provide the benefit of ‘one stop shopping’.

To get a tailored trade-in assessment on your car or truck, call our highly-trained sales consultants or simply drop in and obtain an individualized deal today.