When deciding whether to sell your car or trade it in, it’s important to consider which will give you the most bang for your buck, and convenience. Although selling your vehicle privately might seem like the best way to make money, Idaho’s tax benefits plus the time and hassle you’ll save with trading it in will ultimately bring you the most value. You could also be giving a vehicle to someone in need of exactly what you have to offer; meaning this could be your chance to give back. Read below to see the benefits of trading as opposed to selling, and what conditions are best for a trip to the dealership.
Convenience & Safety:
Trading in your vehicle will save you time and the hassle you’d find with selling it privately. Instead of having to take pictures, write down specs, list it online, and answer a dozen phone calls, your vehicle could be taken off your hands in a day. Simply head over to the dealership and leave your burden behind!
Trusting us with your next vehicle upgrade could also save you from theft and potential scams; we’d hate to see your potential trade-in driven away under the pretense of a “test-drive”. With our trusted dealership, you’ll receive a better vehicle tailored to your lifestyle in exchange for your old one: in a professional setting with no risk of theft.
Value Your Trade
Tax Benefits:
Fortunately for you, the state of Idaho offers tax credit for those that choose to trade in their vehicle instead of selling it. Based on the condition and mileage of the vehicle, your trade may be worth more than you realize and can be used as a credit, (if it is either owned outright or has equity in it) towards the purchase of the new vehicle without requiring additional money down. So, after you’ve turned your back on your old ride, it’s time to choose a new vehicle, and only for the sales tax on the difference between each price.
Choosing to trade might not seem like a money-saver up front, however, making a change could help you save in the long run. Ryan Guina with “Cash Money Life” relates his experience when he decided to trade in his vehicle:
“The last time I bought a new car, I traded my old car in. I estimate I could have made an additional $1,000 on the sale price vs. trade-in price, but after the tax considerations, the total difference would have been in the ballpark of $500. I had other reasons to trade-in as well – I lived in a small town at the time, and actually drove several hours to a large city where I saved well over $1,000 on the price of my new car. That savings more than made up for the difference of trading my old car in (2019 )”.
In some cases, trading your vehicle in could help you manage your existing debt, as well. Approval odds, (if financing is necessary), are better by eliminating the existing debt, especially if there is negative equity in the trade in, by removing it through the trading process. Then the lender looks at it as a trade off of old debt for new debt, balancing your debt to income ratios required for lender approval.
Giving Back:
If none of this has piqued your interest yet, it’s time to appeal to the philanthropist in you: this could be an opportunity to be exactly what someone else needs. In other words, your trash could very well be another’s treasure! Bring in the vehicle you’ve outgrown and we’ll find someone whose needs match it perfectly. The element of giving back appears in a trade-in process: your traded vehicle, to someone else, is or may be exactly what they need. Even if you have decided your vehicle is no longer useful, you are allowing someone else to have the vehicle that suits their needs and purpose, thus helping others in need by choosing to trade instead of sell.
FAQ’s:
Now that we’ve convinced you that trading is the way to go, you might be wondering how to determine your vehicle’s value and/or the prime conditions to bring it in. Here are some frequently asked questions customers have:
How can I determine my vehicle’s value?
The easiest and quickest way to determine the value of your trade-in is through tools that allow you to enter the specs and determine it such as:
What’s the best mileage for a trade-in?
While your vehicle’s value does slightly decrease with every 10,000 miles, as long as the vehicle is in good shape, there is no mileage point that automatically plunges the value. What matters more is the model year. Check out Edmund’s breakdown of factors that determine the value of your vehicle.
When’s the best time (month/season) to trade-in?
Earlier in the year (the first two quarters) is prime time for trade-ins as more buyers are in the market and the demand is higher. However, we welcome a trade any time of year!
Is there a prime age of a vehicle for trade-ins?
It’s estimated that most vehicle values begin to decline after 5-8 years, but once you’ve passed that 5 year mark, don’t worry! Based on it’s conditions, your vehicle could still have a lot of value.
When’s the best point in my loan to trade-in?
If you owe more on the loan than your vehicle is worth, we wouldn’t recommend trading it in just yet. With a little more equity in it, your trade-in could have more value that becomes credit towards your new vehicle.
Conclusion:
With the key benefits of trading in your vehicle laid out for you, it is clear that making a trade instead of trying to sell privately will save you time, potentially authorize you for a tax credit, and bring you convenience. Ridding yourself of an unwanted vehicle has never been this easy or enjoyable; so we’ll see you soon.