What’s the Trade-In Value of My Car?
One of the most common questions we get is, “how much is my trade going to be worth”? And believe it or not, this is a complicated question. It’s not just about how much it can be resold for, it’s about a complex equation that factors into where you live, the mileage on your car, it’s condition and so many other factors.
Estimate Car Trade In Value
Trading in your used car can be a great way to reduce the cost of the new vehicle you want to buy. But what’s the best way to go about it? And how do you know that you’re being offered a reasonable price for your car? Here are some points you should keep in mind if you’re trading in.
Learning the estimated value of your vehicle before you try to trade it in will help you in making sure that you’re getting a good deal. With some basic information about your current car, you can use an online tool to find out what the expected price will be.
First, you’ll need the model and year of your car. For example, you may have a 2020 Buick Encore. It’s also helpful if you can provide your vehicle’s trim, because this will indicate the specs and features of your vehicle, including the engine capacity, interior finishings, and entertainment features.
Then, you should think about the condition of your vehicle. This can seem subjective and hard to determine, but there are a few guidelines you can follow. A used car would only be considered in excellent condition if its engine runs perfectly, there are no marks on the paintwork, the tires match and have a lot of tread, and there isn’t too much wear and tear on the inside. Owners of a vehicle in excellent condition will also have its full maintenance record, and the car would be able to pass all required inspections.
A car in good condition would have wear and tear consistent with its age. This could include things like some wear or chips on the paintwork and modest wear on the tires. Your car may be considered in average condition if it requires a bit of work, such as a touch-up of exterior paintwork. Vehicles in the average category often lack full maintenance records.
Finally, you should check how many miles your vehicle has driven. This will help online tools calculate an approximate reduction in your car’s price compared to its new sale price. The amount of value your vehicle loses over time is known as depreciation.
How To Trade In a Car
Once you know the estimated value of your car, the next step is to locate a dealer that offers trade-ins. At Sweeney Cars, we offer you a chance to see the same market data we use to reach a fair price for your trade-in vehicle. That way, you can better understand what your vehicle is worth.
It’s important to remember that there’s always a difference between the trade-in price and the private purchase price. The trade-in price is what a dealer will pay you if you trade in your vehicle, and it’s typically lower than the private purchase price. The private sale price is the amount of money you can expect to receive if you sell your car to a private buyer.
There are several reasons why the trade-in price may be lower. First, the dealer will usually plan to sell the used car to a new buyer and may need to invest time and money to carry out repairs. Secondly, the process of selling a vehicle itself takes time. Just consider how much work you would need to put into a private sale, including marketing your vehicle to potential buyers and being available to show it to them.
What To Do at the Dealership
One way to improve your chances of securing a good deal is to bring all of your car’s paperwork with you when you visit the dealership. If you can prove that you have taken your car for regular maintenance and document any repairs or improvements you’ve made, the dealer may consider making you a better offer.
After you reach an agreement with the dealer on your trade-in price, you can move on to the next step.
Deciding on a New Car
Specific rules may apply to the trade-in process, but generally you can deduct the value of your old vehicle from the price of purchasing a new one. This may increase your chances of getting financing for your purchase, or reduce the monthly car payments you’ll have to make.
Most dealers will have an inventory of new vehicles that you can browse in order to find what you’re looking for. If affordability is a major concern for you, you may also want to take a look at their certified pre-owned vehicles. These are used vehicles that have been purchased and repaired by the dealer to ensure that they perform to a high standard.
How To Finance Your Purchase
Many auto dealers offer help with financing to make the trade-in process straightforward. This means that after you’ve agreed on the trade-in price and it has been deducted from the cost of your new car, you can reach an agreement to cover the outstanding balance.
Trading in your vehicle is still possible if you’ve got outstanding loan payments to make on it. If this is the case, the auto dealer will usually agree with your previous lender to pay off the remaining balance in exchange for the title to the car. Any positive equity you have in the vehicle will then be deducted from your new purchase price.
Trade-Ins and Leasing
If you’d rather not purchase a new car, some dealers may offer you the option of putting the trade-in value towards a leasing agreement. When you lease a vehicle, you agree to make a monthly payment to a car dealer for a set period of time, such as two years or six months. When the deal expires, you return the vehicle to the dealer.
Well, that’s about everything you’ll need to know for a successful trade-in! We’ve taken you through how best to prepare for trading in your vehicle, what to do when you visit the dealership, and how to access financing. Do you still have questions? Would you like to receive an offer for your used vehicle?
Contact us today at Sweeney Cars. Our used car sales team will be able to guide you through the process, make you a top dollar offer, and help you on your way to buying a new car.