Understanding trade-in values and how they can benefit you
July 20 2020,
One of the most frustrating parts of buying a new car when we are trading in our current vehicle is the trade-in value we receive. We understand that it can be frustrating to get less than the market value. That said, there are other considerations to take into account.
For starters, selling your vehicle yourself is not an easy proposition. Consumers like to negotiate and means that you may spend a lot of time haggling over the price of your vehicle. Moreover, it can take weeks or sometimes months to sell a vehicle and you will get a lot of visits at all times of the day before you find a qualified buyer.
We are not saying selling your vehicle yourself is impossible, we are saying is that it is worth checking if trading it in is not only easier but also financially acceptable.
Let’s say that you’re looking at a $30,000 vehicle. You believe that you can get $20,000 for your current and you plan on applying that to the price of the new car. Because down payments are applied after taxes, the $30,000 vehicle with the deposit of $20,000 Will equal 14,500 with taxes and fees ($30,000 + tax and fees - $20,000). On the other hand, let’s say that we give you $17,500 for your vehicle. We will take the price of the car $17,500 and then add tax to that number. The result will be a net price of $14,375 including fees. In this case, trading the vehicle in has actually saved you money, and a lot of hassle.
To learn more about how trade-in values are determined and calculated, give us a call today.
