Financing
Trade-Ins and Your Car's Value
Most people, when buying a new car opt to just trade in their old car instead of undergoing the hassle of posting a used car advertisement, negotiating the price and finalizing the deal. Most car dealerships are aware of this and make it easy as can be to trade in your old car when you buy a new one. But is this the best route to take?
If you are buying a new car from a dealer then trade-in is a viable option. Depending on the auto financing deal you are able to negotiate, the trade-in value of the car can be applied towards the amount you are going to finance. Additionally, some states will only charge tax on the price of the car after deducting the trade-in value of your used car. This could mean big savings down the road especially in areas with a high sales tax.
Alternatively, selling your car on your own will most likely get you top dollar. This may be especially true if you have made significant investment in the car that may cater to a particular private party, a harder sell to the dealership.
Use an online resource like Kelley Blue book to find out the difference you should expect to see between trading in your car and selling it privately. It may be that the difference is worth avoiding the hassle of selling it on your own.
Before you set foot in the door know what you are willing to let go of your old car for. The tools of negotiation when buying a new car are few so being armed with some research beforehand may help you to save some money.
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