What You Should Know Before Trading in Your Car

5 Steps to Trading in Your Car

Trading in a car requires far less work than selling the vehicle privately. However, there's still work to be done. Here are the five steps you must take to trade-in your vehicle.

Find the Price and Value of Your Car

Before you get started, you want to know how much money your vehicle is worth. The easiest way to get the value is to look it up on Kelley Blue Book. You punch in the make and model information, as well as all of the features, to get a value. Just be careful to look at the trade-in value, which is naturally going to be significantly lower than private party sale.

Figure Out Your Finances

Now that you know a ballpark figure of what you'll get for your trade-in, if it's in good condition, you are ready to start making some plans. Sit down with your budget to figure out what you can afford. The trade-in vehicle could be used as a down payment to further reduce your monthly payments.

Shop Around

You know how important it is to shop for the best price when buying a car and trading is no different. You can contact multiple dealerships to see who is going to offer you the most for your trade-in vehicle. If you don't want to spend a lot of time on this step, come to Phil Long Dealerships, where we always offer top dollar on trades. 

Get Your Paperwork in Order Before you head to the dealership, it's important to gather all of your paperwork. You won't be able to sell us your vehicle without the title and identification documents. We also recommend making a copy of these documents in advance so they are ready for our team. How to Negotiate It's often possible to negotiate on a trade-in value. Some dealerships will offer you a rock-bottom price in hopes that you will take it. By going back and forth for a few minutes, you may be able to earn a little more money. If you aren't a fan of negotiating, head to a Phil Long Dealership instead. We don't mess around and always offer our customers the best price upfront.

Maximize Your Car's Value

There are several ways to increase the value of your vehicle without a lot of effort. Here are a few tips to help you out.

• Don't spend more than 10%. If your vehicle is worth $4,000, you don't want to spend $500 to get all new tires installed. However, if it only needs two tires for $250, this would be a good investment.
• Prepare all service records. A well-maintained car is worth more money.
• Clean and detail the car. The cleaner it looks, the more valuable it appears.
• Fix up some dents. If there are dents that can be easily repaired with Paintless Dent Repair and the cost is less than 10% of the value, get the work done.
• You don't need to spend a lot of money to increase the value significantly. 

Pros and Cons of Trading in Your Car

When it comes to trading in a car, you need to carefully consider the pros and cons of this pathway. Here are a few to think about.

Pros

The biggest advantage to trading in your car is that you have less hassle and stress. When you sell a vehicle privately, you have to list the car and meet up with potential buyers to show it. This process is also best performed if you meet in a neutral location instead of bringing strangers to your house. With a trade-in vehicle, you don't have to do all these steps. All that's required is that you bring the car to the dealership.

With a trade-in, there could also be a tax advantage. It's possible to only pay the tax on the difference between the new vehicle purchase price and trade-in. Depending on how much you are spending, you could save a lot of money on taxes.

You also save a lot of time trading in your vehicle. Instead of selling your car one way and buying a new one somewhere else, you take care of everything in one place.

Cons

The biggest downside to the trade-in vehicle is that you won't get as much money for it. When you bring your vehicle to a dealership, you must consider that the dealer also needs to make some money. For that reason, you are going to take a lower offer, giving the dealership a chance to resell it.

You may also feel limited when it comes time to buy another car. Once you trade in your vehicle with a dealership, you are confined to finding a new car through them. 

Should You Trade in Your Car?

Is trading in your car the right choice for you? If you want to save time and keep the hassle as low as possible, bring your vehicle to us at the Phil Long Dealerships. We can help you decide which path is right for you. Schedule a test drive today. 

Value Your Trade