When buying a car, many people must decide what to do with their current vehicle. Should it be sold privately, or traded to the dealership? Below, we will discuss some of the benefits and disadvantages of trading in a used car.
Benefits of a Trade-in
- It’s simple. Selling a vehicle privately can be hard; it requires time, effort, money and making yourself available to strangers through phone and email. Trading a vehicle in at one of the Car Dealers Santa Maria helps you avoid all the hassle, as the dealer will make you an offer and take the car the same day. In some cases, the dealer will offer to buy your car even if you don’t buy theirs.
- You can trade in a financed vehicle. Some people want to switch cars while they still owe money on their current vehicle, and dealers will take a trade if it’s still being paid off. In that case, the dealer pays the balance of the loan and adds it to the loan balance of the new vehicle.
- You can get help with a down payment. When trading in a vehicle at Car Dealers in Santa Maria, any positive balance is applied to the new vehicle’s purchase price.
Disadvantages of Trade-ins
- You’ll often get a low offer. It’s the car dealer’s job to be profitable, and the quicker they can turn a vehicle over, the more money they make. Dealers get cars from a variety of sources, but many come from trade-ins, and the price of a trade-in is very rarely equal to the private-sale price.
- You don’t get credit for ongoing maintenance expenses. Depending on the type of car, it can be very expensive to keep it on the road. When trading in a vehicle, the seller doesn’t get credit for the money they’ve spent on tires, tune ups, and repairs.
- There’s no guarantee the dealer will take the vehicle. There are some cases where the dealer doesn’t want it: when the vehicle isn’t popular with the public, or when they already have a selection of similar vehicles.
Trading in a car can be a great way to save on your next vehicle purchase, but there are also disadvantages to be aware of. By knowing what to expect, you are more likely to get a fair deal at the dealership.
Be the first to like.