How Does Trading In a Car Work?

May 15th, 2018 by

Auto Financing Paperwork

Value Your Trade

If you’re planning on trading in your current vehicle when you purchase a new one at your Tacoma car dealership, then it’s great to be prepared in advance in order to know what to expect throughout the process. Learn more about what’s involved in trading in your vehicle and how you can properly value your trade-in when buying a new car near Spanaway.

The Car Trade In Process

Once you arrive at the dealership, an associate will greet you and conduct an inspection of the vehicle as well as run the VIN through a database to check the vehicle’s history. To determine the value of your trade, the dealer will conduct a financial analysis that takes into account the condition of your vehicle, the model, year, and supply.

While some negotiation is always possible in any transaction involving a dealer, you should understand that the market dynamics at work in determining the value of a trade apply equally to every other dealership. Here’s an easy way to calculate your payments.

Car Loan Rollover

If you owe money on your trade-in vehicle, then you’ll have to resolve the issue of how the remaining balance will be paid. If the amount you still owe on the vehicle is less than the trade-in value, then you won’t need to worry about resolving the difference (as it will be absorbed in the transaction. However, if you owe more than the value of the vehicle, then you’ll have to consider rolling over the loan. Basically, you’ll trade in your vehicle and the dealer will take the remaining balance on the loan and apply it to a new loan.

Selling Your Car In Puyallup

If you decide that trading in your current vehicle isn’t feasible for you, then you could always consider selling it to a dealership or a private buyer. A dealership will typically be more convenient since the accounting paperwork, taxes, and other infrastructure are all available as part of the dealership’s capabilities. A private buyer may be less organized — and this may cause issues for your transaction.

When you want to learn more about financing, be sure to read up on no-credit financing today.

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