Benefits of Trading Your Car
The great advantage of trading in your car is convenience. Trading in your vehicle provides you the feasibility of completing two major transactions in one place and at one-time. This of course is provided that the dealership or Car Buying center you choose does indeed provide this option; most of which do. Whether you’re downsizing your vehicle to save on unnecessary expenses or upgrading your vehicle to the new ride you’ve always wanted, both seem to provide a necessary sense of convenience.
Another major benefit of trading in your car is the ability to retain a higher value for your vehicle. When utilizing resources such as KBB’s Trade-in Value tool, you are able to find your vehicle’s competitive Trade-In value. This, however, may not be the best option to trade your car as you may be subject to the ‘car bidding frenzy’ that many vehicle owners have experienced when using KBB’s tool. Read more about this below and be sure to check out the best options to trade your car.
Here’s What You Need to Know Before You Trade
A trade-in will provide you more money for your vehicle than just the sale of your vehicle, as the Dealer may be able to roll equity into your new vehicle, thereby lowering your new vehicle’s auto payment.
It is important to note however that when submitting your vehicle’s info into KBB’s tool, hundreds upon hundreds of Car Dealerships will receive your inputted vehicle’s data and begin what we call a ‘car bidding frenzy‘. All Dealerships throughout your region will begin calling you, texting you and even emailing you to ensure your vehicle reaches their lot.
Make Sure You Know The Best Ways To Trade Your Car
As described above, this ‘car bidding frenzy’ is the product of utilizing a Data Aggregator like KBB that’s linked to hundreds of Dealers in your region. This is why many experts in the auto field actually prefer and recommend car buying centers when trading in your car or selling your car.
We’ve taken our time research the absolute best way to trade in your car. If you’re ready to begin, we recommend this hassle-free, no-obligation approach. Just click below to get started with your trade.
Things to Expect When Trading In For a New Car
When trading your car, you may expect to sell your vehicle and apply the sale amount to the purchase of your new car.
You may also expect to fill out all paperwork during the same transaction. If you do indeed have a lien on your vehicle, or more commonly referred to as an outstanding car loan payment, you will need to follow the below steps to trade in your with a loan.
How To Trade in a Car with a Loan
- Contact your financial lender & request payoff information
- If you owe money on the car you’ll want to determine the “payoff amount” of the vehicle.
- NOTE: If you intend on selling your vehicle to a third-party Dealer like TheCarBuyer.com or CarMax (for example), you must contact your lienholder and request for the third-party 10 day dealer payoff amount. This amount may slightly vary from your personal outstanding balance. Usually will vary no more than $100-200.
- In order to determine the payoff amount of your vehicle, it is advised to contact the bank/financial institution that hold the lien on your vehicle. Before calling the lienholder, you will need:
- Full name of vehicle owner (likely your name)
- Your account number
- Last 4 digits of your social
- If you owe money on the car you’ll want to determine the “payoff amount” of the vehicle.
- Determine if you have positive equity or negative equity on the vehicle if you still own money on it.
- Positive equity means the value of your car is more than what you owe. If that’s the case, your sale price will be applied to your trade-in purchase.
- Negative equity means the value of your car is less than what you owe on a loan. You’ll be responsible to pay this amount before trade-in so that you are no longer “upside-down” on the loan.
- Disclose the loan status of the car you are selling
- If you do still owe money on your vehicle (having negative equity), the dealer will take over the loan.
- Agree on a sale price of your vehicle
- The sale portion of trading in your vehicle will involve the same process of determining the value of your car, receiving a quote, appraisal and inspection, leading to a final sale offer. You’ll need to balance these numbers as you consider which car new vehicle your sale will be applied to.
- The sale portion of trading in your vehicle will involve the same process of determining the value of your car, receiving a quote, appraisal and inspection, leading to a final sale offer. You’ll need to balance these numbers as you consider which car new vehicle your sale will be applied to.
- Shop for your new car – Many dealerships and car buying services are well equipped to find the specific vehicle you have in mind. For larger dealerships you’ll likely have an inventory to scout. For smaller dealerships, they may be in a position to simply make a call to have your vehicle delivered to their location for purchase.
- Complete all paperwork and finalize the trade – You’ll finish all paperwork on site for both transactions, including new financing should you choose the dealer’s loan terms. Pro tip: Have a pre-approved loan certification from your own lender in place and see if the car dealer can beat those terms.
