Key Takeaways
- Trading in your vehicle can help lower the cost of your new vehicle purchase.
- The value of your vehicle can be affected by any loans you might have on your vehicle.
- You can find an estimate of your vehicle on our website and you can have an idea of how much your trade in can knock off your new vehicle purchase.
- When you go to trade in your vehicle it can be helpful to come prepared with all necessary papers and your keys.
What is a trade in vehicle?
A trade-in vehicle is a car that you turn into the dealership and you get a certain value for the car that goes towards your purchase of a different vehicle at the dealership. Depending on your vehicle it can take thousands of dollars off the price of your new vehicle. What they do is take the value of your car off the top of the vehicle that you are purchasing. This works best for those who have already paid off their entire vehicle.
Got Loans?
As a first time buyer you most likely will not have loans on your current vehicle, as you might have gotten as a gift or have leased previously. This portion of the article is more for those of us who have already purchased a car and used a loan to assist with the purchase.
Having a loan on your vehicle can affect trading it in a couple of ways. If you have paid down your loan significantly you may have developed some positive equity. With positive equity, the value of your vehicle minus the amount left on your loan can go towards the purchase of your new vehicle.
Unfortunately, if your loan balance is greater than the value of your vehicle, you may not be able to use your current vehicle towards your new purchase. The good news is that most dealerships offer a purchase plan where you can roll up the current balance of your loan into the loan on your new vehicle.
Research your trade in value?
The best part of the trade-in is that you can know before you come into the dealership. We have a tool under the finance tab where you can value your trade in. This gives you an estimate of what your vehicle may be worth for a trade in. Using this tool, you can have the estimate coming in to the dealership and you can get a better idea for how much your new vehicle will cost. This tool is not final though as it comes down to an examination of your vehicle by our experts to give your vehicle an appraisal.
Complete your trade in
When you come into the dealership it pays to be prepared. If you are wanting to turn in your vehicle for a trade in, what you should do is bring your loan balance and account information. You will also need your vehicle's information, including your registration, proof of insurance, your driver’s license, and title of your vehicle if you have it. Having your own copy of the vehicle trade in value can also be helpful as a reference. As a final piece you will need to bring all the copies of your vehicle’s keys.