A used-car trade-in is another very debatable practice – for some believe that to trade in a car constitutes the best way to go about exchanging an old set of wheels for a new one, while others believe that the trade-in does not benefit a car buyer. However, most of us can agree on some definite benefits of trading in your old car when it’s time to get a new one.
A bargaining chip – The trade-in value is something a car buyer can use to provide leverage at the dealer’s lot. For buyers who are looking for “sticker price relief”, trade-in value can be a big help. If introduced at the right moment, a trade-in value can alleviate some of the cost of a used-car salesman recalculating a total invoice amount.
Immediate insurance relief – Trading in a vehicle gets that old car or truck off of your auto insurance policy, saving dollars. A vehicle that is not traded in a still on the street, owners tend to keep these cars insured, relaying money off into their auto insurance policies.
Time well saved – A trade-in also presents an appealing alternative to trying to sell a used vehicle as a private party seller. Going through placing a car classified ad, meeting prospective buyers, and all the rest of it can cost you time and money.
Additional costs – Along with the time spent in selling a used vehicle as a private party deal, there are also additional costs that the owner may not have considered. For example, a vehicle near or out of inspection may need a sticker to be sold at a good price. Other minor repairs may come into play. A used car owner may spend more time and energy refurbishing their car for resale then it may be worth. All of this can be avoided by trading in the car to a dealer who can figure out what to do with it.
Consider these 4 benefits when thinking about a used-car trade in.