When it’s time to obtain a new car, there are what can feel like an overwhelming number of options to consider, from financing options to model and color. One important consideration all current car owners should make is whether or not to trade in their current vehicle at the time of purchasing a new one. In fact, there are a variety of benefits to trading-in that many buyers often overlook.
Trading in your car at time of sale can have tax advantages. Some states only require you to pay taxes on the difference between the price of the car you are purchasing and the value of the car you are trading in rather than the full sticker-price of the new vehicle. This tax benefit does not apply when selling your old car individually.
Finding a buyer and selling your old car on your own can be a stressful and drawn-out affair, but bringing it in to the dealer as a trade-in is easy-as-pie. The process is simple and straightforward: you just drive your old vehicle in with you, complete the paperwork, and ride away behind the wheel of your brand-new or new-to-you vehicle. It really is as easy as that!
Reduced Down Payment
When you trade your car in, you can apply the value of your old car directly to your down payment. This translates to a reduction in the amount you will need to finance, saving you money in the moment and in the long run.
How to Get the Best Trade-In Value
If you see the value in trading in and decide to go through with it when the time comes for your next car purchase, there are a few things you can do to potentially increase the value of your old car. As with the trading-in process overall, these steps are incredibly simple. Just spruce up your old car with a thorough cleaning or perhaps even a quick detailing and be sure to have any minor mechanical issues checked out. If you can take care of that ding in the driver’s door and the tire-pressure light behind the steering wheel before you bring it in, you might save yourself a good chunk of change!
To learn more about trading your car in when making a purchase, contact us at Tipton Auto Group.