Trying to figure out what to do with your current car when thinking about purchasing a new car can be daunting. You have the choice to keep the car and have an extra, or you can trade it in. Unsure about a trade-in? It isn’t as scary as it seems. If you’ve taken care of your car, you could get a great value on the trade-in and make your new purchase simple.
Take a look at some of these tips on how easy it is to trade in your car. Hopefully, this makes the decision easier.
- Trading in is simple: You don’t have to worry about any of the paperwork, transfer or buyer negotiations. No need to head to the DMV to help the person change it to their name. Once you agree on the price being offered for your car, that’s it. You walk away from the trade with no other issues to worry about.
- With a trade in you also get a tax benefit: the tax owed by you is the new car’s value minus the trade-in value of your old car. Basically, if your car is worth $9,500 and the new car you want is worth $25,000, your sales tax will be on the total new finance value of $15,500.
- If the trade-in amount is used towards the purchase of your new car, this makes any car loan being taken out for the same, considerably lower. This means lower monthly payments and even a shorter loan term: perfect!
- Some car dealerships will even buy the car, for an agreed upon price, even before you’ve completed paying for the car. They will pay off the car once the papers are signed over to them.