Trading in a car at a used car dealership is a great option for getting rid of an old car. However, many owners forget that this option exists, or don’t consider it a worthwhile option.
When wanting out from under a car you no longer want, the owner may think the only or best option is to sell it himself, but a trade-in does have its advantages. The benefits of a trade should not be ignored, as in many ways it is superior to selling the car yourself and saves the hassle of advertising it online or in the paper and wading through potential buyers, who may or may not be serious buyers.
Deciding to Trade it in
A trade-in at a dealership occurs when the dealer takes someone’s current vehicle and uses the money given for the car toward a newly purchased vehicle. The value of the old vehicle is subtracted from the cost of the car the person purchases, unloading the vehicle from the owner and reducing the overall financed amount for the new vehicle, which lowers payments.
The majority of dealerships accept trade-ins, yet a surprisingly small percentage of car owners take advantage of this offer. Instead, they choose to sell their old cars on their own.
Here are the top 3 reasons why trading is a better option than selling a car on your own:
- You don’t have to pay the car off first: For those who have not yet paid off their vehicles, trade-ins are excellent options. When selling a car on your own, the vehicle must be paid off before selling it to another person. If your personal finances do not allow for this, the car cannot be sold. However, it can be traded. Dealerships accept financed cars because they pay off the loan themselves. If the remainder of the loan on a car exceeds the amount offered for the car in the trade-in, this amount will be added to the loan used to purchase the new car from the dealer. This is a small price to pay for selling your financed car.
- There is no period of paying insurance on multiple vehicles: If you buy a new car before selling an old one, there will be a period of paying insurance on two vehicles. This is a costly added expense that is eliminated by trading in a car. Insurance on the old vehicle will transfer to the new one, keeping costs down to premiums on only one car.
- You save a great deal of time: Selling a car individually can take a great deal of time. I’m sure you’d agree that you would rather spend your time doing other enjoyable activities. Trading in an old car is simple and requires no time meeting with potential buyers. Drive up in one car and leave in another: that is the essence of the ease and satisfaction of a dealership trade-in.
Generally, the price given for a trade-in will not be as high as when the car is sold to an individual buyer. However, if this is considered alongside the three benefits listed above, a trade-in will likely prove the best option for your vehicle and your budget.