Why Trade Your Vehicle In?

August 18th, 2021 by

If you’re considering trading in your vehicle, stop by Kelsey Chevrolet in Lawrenceburg, Indiana. They are a friendly, knowledgeable sales team and the finance department are waiting to help put you in your new car!

Trading in your car is easy and convenient. Many people choose to trade in their existing car when they want to purchase a new one.

They just need to go to a car dealership, read and sign a couple of documents and that day or the next day you can drive your new vehicle off the lot. Using the trade-in amount towards your new vehicle’s down payment helps lower the amount of money you have to borrow from a financial institution or even the dealership.

There may also be tax benefits. Most states only require you to pay sales tax on the difference between the price of your trade-in and the price of the vehicle you’re purchasing, not the entire purchase price. Which can save you a good deal of money.

However, if you sell your old car yourself, you will not be eligible for this tax advantage. You should contact your local Department of Motor Vehicles (DMV) to find out any other tax-related information that may help you decide to trade in your vehicle or sell it yourself.

The disadvantage of trading in your car is that you may end up owing the dealer hundreds, if not thousands, of dollars. As previously said, the most you can hope for when trading in a vehicle is to get its wholesale value, which is much less than what you would earn if you sold it yourself.

Furthermore, even if you’ve looked at all the price sources and believe you know how much your car is worth, you’ll almost certainly have to negotiate with a salesperson to obtain the best offer.

You may increase the value of your trade-in by doing the following:

When a used-car manager assesses your vehicle’s worth, how it looks is a critical factor.

If your vehicle needs repairs, obtaining an estimate to take with you may be beneficial. When the dealer’s estimate begins subtracting repair expenses from the number given to you, this may give you some negotiating leverage.

Sell your vehicle to a used-car dealer if possible. They are constantly looking for vehicles with low mileage, that are clean and have been well taken care of to add to their inventory. If your vehicle model is popular, you may be able to sell it for a higher amount of money than what the salesperson would offer, which is wholesale price.

When it comes to discussing your trade-in, there are a few things to keep in mind.

Keeping the buy & trade-in conversations separate can help you get the greatest price. Allowing a salesperson to combine the two provides them way too much leeway in influencing the numbers. It’s possible that a decent price in one region is offset by a bad price in another.

We recommend that you first negotiate the price of the vehicle you wish to buy, and then talk about your trade-in amount. Dealers have an incentive to be aggressive with trade-in offers since they earn a lot of money reselling them.

What matters is the total amount you must pay. Before you sign the sales deal, make sure you read it and understand it. Ask inquiries if you have any concerns about the terms and conditions. You won’t be able to back out after you’ve signed.

The Benefits of Trading in Your car

There are many things to consider while determining the best method to get rid of a vehicle. Before you try to sell the vehicle on your own, learn how a trade-in might assist you.

When you trade-in your vehicle, the dealer manages the whole process from beginning to end. All you must do now is show up and negotiate a deal, and you’ll be on your way to purchasing a new vehicle.

While selling a car yourself has its advantages, trading in a car is a better alternative if you don’t have the time or inclination to advertise your vehicle.

It takes time and effort to sell a vehicle privately: you must advertise it, meet with prospective purchasers, and transfer ownership. Finding a buyer may take many weeks or even months. When you trade-in your vehicle, on the other hand, you can get rid of your old car within the next day or two.

Posted in Trade-in