New cars are fascinating we all want them but before getting we want to get rid of the old car that too with a good profit. You have two options for that either trade-in your car to dealership or sell it privately. Let’s talk about trading a car, what it is? How does it work? and what are the pros & cons of trading a car?
What do you mean by trade-in a car?
Trading in a car means exchanging car with dealer for money or they will give you a discount on the new one that you are buying. It is a fast and convenient way to get rid of your used car.
How does it work?
It is as simple as we say it earlier just take your car to the dealership, the salesperson will check it and let you know the value they are offering than some paperwork and you are free. If you want to buy a new car from a dealer then they will subtract the trade-in value of your old car from the new car price and rest you can pay or collect the cash by the dealer.
Fast and convenient
Selling a car to a dealership is fast as you don’t have to advertise the car then wait for a buyer to come and check, you just need to visit the dealership and all your work will be done there.
Only deal with the dealer
The main problem occurs when selling a car to private parties is you have to deal with multiple people and it is stressful and time-consuming but with trading it in the dealership you just have to deal with one person.
Reduces the price of new car
The trade-in amount can be used to buy a new car this will reduce your new car price or you can use that amount as the down payment for the car you need.
The dealership has to do all paperwork
We all know when selling a car or something else it includes paperwork and this costs you money when you sell the car to private parties then you have to do all the paperwork by yourself but it’s not same in case of the dealership as they do all paperwork.
In some states, you have to pay sales tax on you selling price of a used car but if you are trading your old car then there is no tax to pay.
You don’t need to worry about maintenance
If your car needs any maintenance while trading you don’t need to worry about that dealer will take care of that but in private selling, you have it fixed by own.
Dealers want to make their profit in every deal that’s why they will offer you less than your car’s worth. This is the major drawback of trading your car.
Limited buying options
When the dealership agrees to take the used car for the new car then there are limited options that they offer that your trade-in value can cover.
Not for all vehicles
dealers only take vehicles that are high in demand or the one they can easily sell, keep this in mind not all vehicles are eligible for trading.
How to trade-in a car
When you decide that you want to trade-in your car then you should know some things also that help you get a good deal
Know your car’s worth
It is very important to know your car’s value before going to the dealership this will help you in negotiating the price with the dealer
Clean your car
We advise you to clean your car before taking it to the dealer as it will give a good impression and if there are some little things that you can fix without paying much money do that also this will increase your trade-in value.
Shop to different dealers
Before finalizing a deal go to different dealers and check what they are offering for your car then pick the best deal.
Can we negotiate the price?
Of course, you can negotiate on your trading amount that dealer is offering.
Is trading best option?
Well, this depends on the amount you are getting if its good amount then it is if not then it is not.