When it comes time to get a new car, trading in is one of the best options available to you. Taking your old car and using it’s value to make your next car less expensive is a great deal that kills two birds with one stone. It can be a bit complicated to figure out however so in this article we’re going to walk you through the quick and easy steps to trading in your car.
Get The Cars Value
The first step is figuring out what your car is actually worth. Unfortunately this can also be the hardest step because the value of cars is constantly in flux. A good place to start is online listings of similar cars. If you can find the cars similar to the one you want to trade in and take an average of that number you have a decent rough estimate of the cars value.
Of course when you trade in a car the condition of the car is also important. Any damages or issues with the car will be taken off of the trade in value, so remember to factor that into your estimated value.
Figure Out The Loan Situation
If you still have a loan to pay off on the car you want to trade in that doesn’t exclude you from trading in but you will need to factor it in. Ideally the trade in value of the car will cover the cost of the loan still to be repaid, in which case you’re golden, though you may not save as much as you wanted to on the new car.
If the trade in value doesn’t cover the loan repayment, meaning your loan is upside down, then trading in may not be the best idea right now as you’d actually end up having to pay money to trade the car in.
Get Some Offers
You’re never married to a single dealership, in fact if you’re thinking about trading in a car you can talk to several before making a decision on who you’re going to go with. Call up a few of the local dealerships and ask them how much they’d give you for the car and compare and contrast.
Obviously you should also choose a dealership that has a stock of cars you’d actually want in exchange for the old one, which is why solid research is important. Once you’ve settled on a dealership, make an appointment and get the car properly appraised. Make sure you bring all the necessary paperwork to ensure a smooth transaction.