For most people when you go to buy a new car, your intention is to drive it for more than three or five years. Of course, if you’re leasing a car, you’re looking forward to trading it in and getting a newer vehicle. However, a few years after the purchase of your car you will start to receive flyers in the mail from car dealerships inviting you to trade in your car for a newer model or brand.
Before you decide that trading in your car is for you, make sure you consider what the car would be worth. Ensure that it is serviced and functions well. Get it in the best shape you possibly can. That being said, is it worth trading in your car? We’ve partnered with Dulle Motor Cars to bring you the following tips.
Here are some pros to trading in your car:
- There’s no hassle! Simply put!! You don’t have to worry about any of the paperwork, transfer or buyer negotiations. Once you agree on the price being offered for your car. That’s it. You walk away with the money from the trade with no other issues to worry about.
- With a trade in you also get a tax benefit because the tax owed by you is not on the new car’s value but the new car’s value minus the trade-in value of your old car. In other words, if your car is worth $10,500 and the new car you want is worth $22,000, your sales tax will be on the total new value of $11,500. That’s a lot of savings!
- You can put the trade in amount towards the purchase of your new car thereby making any car loan being taken out for the same, considerably lower. This means lower monthly payments and even a shorter loan term.
- Some car dealerships will even take the car off your hands, for an agreed upon price, even before you’ve completed financing the same. They will finish paying for the car once the papers are signed over to them.