Top-Notch Trade-Ins: Your Trusted Used Car Dealer
Posted Sunday, May 28, 2023
You don't drive the same car forever. After a few years, sooner if you're fortunate, it's time to upgrade your vehicle. So you embark on the process of selling your current vehicle to buy a new one. However, we can simplify the whole thing with a top-notch trade-in. Here's how
What's a Trade-in?
A vehicle trade-in is when we purchase a vehicle from you and subtract its value from the price of another vehicle you want to purchase from us. Essentially, you will only need to pay the difference between the car instead of the entire price.
How does this make things easier, you ask? Here are the benefits of a trade-in:
Greater Value:
When you are trading in a vehicle, the dealership may purchase it at a higher price since they do not have to pay you in cash. Let's say you were selling your old car for $20,000. If you decide to trade in that vehicle for another instead of just selling it, the dealership can choose to give it a higher value, like $22,000 or $25,000, instead of just $20,000. Why is that?
Of course, this confuses many when they hear it for the first time. You see when you are selling them a car. They must be concerned about their profit margins. They'll want to buy it for cheap so they can fix it up and sell it for a high price.
However, when you do a trade-in, you've chosen to purchase from the dealership along with selling to them. That's a stronger business relationship, and the dealership can reward you by applying a higher value to your car. Since the dealership will not have to pay any cash to you but adjust the price of the vehicle you purchase, it's easier for them to be generous while buying your old car.
Less Hassle:
Suppose you do things the old way. First, you have to sell your car, and then you have to find a new one to buy. That means you will have to take part in two separate transactions. In the meantime, you are at risk of spending the money you earned from selling your car, reducing your buying power for your new car.
To avoid that and having to take the money and then spend it. You can just hand in your old car plus the difference and drive home in a new car in one trip. This is much more convenient. You can also sell to and buy from the same person. They get more business, and you get a great deal all in one hassle-free transaction. Doesn't that sound great?
Types of Trade-ins
There are two situations when you trade in your vehicle. Either your vehicle is fully paid off, or you still have some debt remaining. Let's explore a vehicular trade-in in both situations.
Completely Paid Off Vehicle
Suppose your old car is completely paid off. You took it to a dealership, and they said they would pay $20,000 for it. Now you brought it to our dealership looking for a trade-in. We value your car at $22,000 should you decide to trade it in with us.
You choose a car that costs you $30,000 from our inventory for the trade-in. We subtract the value we assigned your car from the price of the new car and sell you the new car for an additional $8,000 and your old car.
In one single transaction, you've got your new car with only $8,000 out of pocket. Doesn't that sound like a great way to upgrade your car?
Vehicle Not Completely Paid Off
The second scenario is when you still have some car debt on your old car. You can still trade in your vehicle. However, the debt will affect the final price. Depending on if the trade-in value covers your debt or not decides whether you will trade in your car with positive or negative equity. This may sound confusing, but bear with us; let's explain with examples.
Positive Equity
Let's say you still owe $5,000 on your old car. If you'd sell your car to someone or a dealership, you'd get $18,000. We value your car for $20,000. Now you want to trade in for a car worth $25,000.
First of all, we would have to subtract your debt from the value we assign your car. When we subtract $5,000 from $20,000, we are left with $15,000. We will have to hand over that $5,000 to your debtors to get rid of the dept., leaving you with $15,000. Since you have money left over after paying all your debt, it's called a positive equity trade-in. Now for an additional $10,000 out of pocket, you can drive home a car worth $25,000. In the end, it's still a great deal and an easy way to pay off your debt.
Negative Equity
Now let's say you still must pay around $15,000 for your car. You've had it for a long time, and it's been through a lot. It's got some dents and paintwork needed, and some parts need to be replaced. You're tired of it and want to upgrade nonetheless.
We understand. Let's say we value your car at $12,000 since we have to change parts and make some repairs before we can sell it. Then you choose another car that's perfect for $20,000.
Now when we subtract the value of your debt from the value of your car, we are left with a negative $3000 balance. That means for you to drive home with the $20,000, you would need to pay $23,000. You've gotten rid of your previous debt and upgraded your car. We always try to give our customers the best deal and advice possible. We make sure to advise customers on the best way to handle negative equity trade-ins. In most cases, we can arrange financing for our customers.
Conclusion
If you want to upgrade your car without hassle in one easy transaction, come down to Start Car Inc. and get a top-notch trade-in deal with us today!
