What are the pros & cons of trading in your car?

Question

How exactly does trading in your vehicle for another work? Are there fees? Would this be a smart move? After getting the new car, is it worth paying it?--Is it more? Reasonable?

Answer 1

Lets start with the pro's. You do not have to advertise the vehicle, then wait for a buyer. If your car isn't worth very much (needs repairs, looks bad, not a very good model) you have a way to get rid of the car, and get a little for it.
The cons, most dealers pay wholesale for the trade, and charge retail for their car. When buying a car from a dealer, there are often
fees (tags, title, license, fees) in addition to the purchase price.
Check local laws, in my state there is no sales tax if the vehicle is purchased from a private party. The thing I find that works is this.
Know what both vehicles are selling for (check ebay, local newspaper, and auto trader) the guides NADA, and Kelly, are over valued, and do not reflect most sales (in my experience)
When approaching a dealer have the information about both.
The dealer will often pay less for your trade, and tell you the savings is in the tax (the equity in your car's price subtracted from the purchase price and all fees)
i.e if you pay $20,000 for a new car, and they offer you $6,000
you will be paying tax on $14,000, instead of $20,000
If you buy from a private seller You can offer a a lesser amount
and sell yours for a higher amount often saving $2000-$3000.
If you do not have to pay sales tax in your state, you can save even more. Try to find the balance between retail, and wholesale Don't be afraid to get all of your figures together,
and offer the dealer the same price. Be prepared to walk out.
Save yourself the aggrivation, and call in the offer on the phone.
It just takes some research, but you could save thousands.

Answer 2

With some dealerships the trade in vaule "disappears". As in you'll get 4k in a trade in on the car. They'll put it on the detailed cost listing but then at the end you'll have more service charges and possibly higher interest.
If you owe money on the car they will add this to the cost of the new car, so you pay new interest on the payoff amount of the old car, which means you'd be paying more in the long run.

Answer 3

Pro: is getting rid of the car quick. the rest are all cons, like you may not get what the car is worth, ie. you will be offered the wholesale price. also depends on the age and model of car, as some the dealers do not want, so may be best to sell yourself or donate for a tax write off. There are no fees as such only expenses on what you can negociate with the dealer.

Answer 4

Trading in your car has its pluses and minuses...

Pluses:
Get rid of the car immediatly..out of an unwanted car
get your new car

minuses:
IF your upside down (meaning owe more then trade in value on the loan) extra will be tacked onto the new loan..say its worth 4,000 trade in and you owe 5,000 they will pay the 5,000 off and tack 1,000 onto the new loan amount.

you can usually sell a vehicle private party for much more then you'd get in trade in

dealers low ball.

Answer 5

Aside from condition, mileage and equipment the best you can expect to be offered by a dealer is wholesale blue book. If you were to sell the car on your own, you could ask for retail blue book and realize a greater return.

Answer 6

you'll always loose money sell it outright. they raise the price when you trade it in . do you really think they give you something. Ask them how much do the employees have to pay like the factory workers. for their friends and relatives.how about buyong one thats a year old but new still sitting there same warranty but they are trying to get rid of them

Answer 7

motorcycles are lots extra fee effective, and lots lots extra low fee (based). motorcycles are additionally lots extra undemanding to shift than a vehicle, in my opinion. in my opinion, i might do away with the vehicle and %. up a motorbike. Use it for usual transportation and what no longer. basically be very careful with a motorbike, they might get out of hand somewhat. Why pay that lots for a vehicle you do no longer pick? cut back your losses and luxuriate interior the open highway on 2 wheels. continuously placed on a helmet! Even on a three block trip, undesirable issues can take place.