3 Terms To Know When You Trade In Your Car

Yonkers Trade In | White Plains Preowned Cars

A shiny new car always looks tantalizing. If you are planning to sell off your car, you can choose to do it all by yourself, or you can decide to trade it in at a dealership. The biggest plus for trade-in is convenience. You don’t have to wait for many days for the sale to happen. When you trade in your car, the deal happens that very day. You get to avoid the hassles of placing ads, locating a buyer, arranging for test drives, waiting for the buyer to line up financing, or deal with other issues. Also, your car’s value goes directly towards the purchase of the new car.

Trade-in will fetch you less than you’d get in a private party sale because the dealership takes into account the cost of vehicle reconditioning and tries to make a profit from resells. But, you can do better at trade-in if you know how the process works, and may even save more money than through a private sale. Yonkers Automall explains below three key terms to guide you in the direction of coming up with the most cost-effective deal.

Appraise the Trade-In Value

When going to a dealership for trade-in, try not to spend money to repair the car. The dealer won’t be swayed to pay more for the vehicle. A freshly cleaned car may tip off the salesperson that you intend to buy that very day. So, skip the wash.

Taking stock of all the car’s options available, accurately, being honest about the condition level is important. Not many cars brought for trade-in, are in superb condition. Most cars that are ‘well maintained’ are good enough for just an ‘okay’.

Upside Down and Underwater

After determining the trade-in value of your vehicle, you will need to calculate how much you still owe on the car. Car shoppers who owe more than their car’s value, are considered ‘upside down’ or ‘underwater’.

To find out how much ‘underwater’ you are, subtract the trade-in value from the amount you owe. This difference has to be paid to the dealership if you choose to sell them your car. This difference might make you rethink the trade-in option you chose, in such a situation selling the care in a private deal will make more sense.

Tax Advantage

Most states collect sales tax from the car buyers to pay on the difference between the car you traded in and the one you are planning to buy. Several states don’t allow this practice. If your state allows you this tax advantage, you could be saving hundreds of dollars, depending on the value of the car. To benefit the most from this try to find out how much cash payment the dealer will ask for before entering the discussion of trade-in with him.

Want to know more about trading in your used vehicle? Visit Yonkers Automall today at our location on Central Park Avenue in Yonkers, NY! Get started on your way to your next car with our pre-owned car finance application online. We look forward to working with you!

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