First Time Trading In Your Car? Here’s What You Need to Know

You’ve decided it’s time to get a new car. Your current vehicle is fine, but you want something newer. It could be that the type of vehicle you currently own doesn’t serve its purpose anymore, like if you have a sporty Camaro but you and your spouse have started having children, so it’s time for a midsize sedan or SUV. But the real question is, should you trade in your car instead of selling it?

If this is the first time you’ve ever traded in a car, then you may have some trepidations about the entire process. You also might be wondering if you are leaving money on the table when you trade it in instead of selling it yourself. The good news is that trading in your current car for a new one is an incredibly easy transaction. In addition, at Kate Faupel Ford, we give you the best trade-in value for your old set of wheels, so you can get yourself a brand new Ford SUV or truck or trade it in for another excellent used model on our lot. You will find that when you trade your car in for a new one at our dealership, you will find it simple, transparent, and a great way of putting a down payment on your next vehicle.

The Downside of Selling Your Used Car

If you are looking to move on from your current car, you can either sell it or trade it in. If this car is just a luxury vehicle, and you don’t need to replace it, then the choice is simple. You should sell it and pocket the cash or use it to pay off other bills. But if you need to replace this vehicle, then it actually pays to trade it in instead of selling it yourself.

Some people think you make more money selling your car instead of trading it in. This really depends on a number of factors, such as the desirability of your make and model, its condition and age, and the market for this type of car. Unless your current vehicle checks all these boxes, you are going to have a tough time getting top dollar for it. In addition, when you sell your car to a third party, you might have to pay a sales tax on the transaction, depending on your state’s tax laws.

Finally, there is the headache of advertising the vehicle for sale, dealing with potential buyers, and then making sure the check you receive doesn’t bounce. Imagine going through all the back and forth with a stranger only to have them fail to pay you or come back to you complaining if something goes wrong with the car you just sold. When you trade it in to a dealer, you avoid all of these headaches.

Let’s Make a Deal

The process for trading in your existing car is incredibly simple. When you want to come and look at your next vehicle, make sure to drive to our dealership in your existing car. This will allow our team of mechanics to inspect your car while you work with our salesperson to find your next vehicle. Our team will report back with two values, one for the trade-in of the car for a new one and the other if you just want to sell it to us.

Typically, the trade-in value will be more than the cash price. Then, all you have to do is fill out some forms transferring the title of the existing car from you to our dealership, which are in addition to the ones for acquiring your next car from us. Best of all, we will handle the Department of Motor Vehicles paperwork, together with assisting you with the change of vehicle on your automobile insurance if needed. You can take care of the entire process in a single visit to our dealership.

The trade-in process can be used for any type of purchase at our dealership. If you are looking to buy your next vehicle for a full cash purchase, we will count the trade-in value against the deal, reducing the purchase price. If you are looking to finance your next vehicle, the trade-in of your existing car can act as a down payment on the loan or lease for your next vehicle. This can also reduce the monthly payments you will have to make on your loan or lease arrangement.

Trading Places on a Financed Vehicle

One of the biggest questions we get asked by our customers is whether they can trade in their existing vehicle if there is an outstanding balance on the loan. This actually happens quite often at our dealership since most people either lease their vehicles or take out a loan. With respect to a lease, if you still have time left and there is positive equity on the vehicle, we can arrange to buy out the lease arrangement and use this equity toward your next vehicle.

Similarly, if you still have an outstanding balance on the loan, but you have built up positive equity in the vehicle, then we can apply this equity to the down payment on your next car from us. The only time this can become an issue is if there is negative equity on the loan. This happens when the amount remaining to be paid is greater than the trade-in value of the car. In this situation, you may have to roll this negative equity into the loan for your new car. Fortunately, this rarely happens, especially if you have kept your existing vehicle in good working order.

Cosigned Loans Need Not Worry

Another issue that arises is if you have cosigners on your existing car loan. Many folks had credit issues the last time they purchased a car, had trouble securing an auto loan, or received terms and conditions that weren’t particularly desirable. In this situation, these drivers may have needed to ask a parent, friend, or another relative with better credit ratings to act as cosigners on the loan. This allowed them to get the loan or improved things like the amount of the loan, the monthly payments, or the applicable interest rate.

The time comes when these drivers are looking to trade in their current car for a new one, but the loan is still being paid off on the car. Unless you have added the cosigner to the title, you have the absolute right to sell the car or trade it in for a new one without the cosigner being present. You don’t even need their consent to do the deal since they don’t have any ownership interest in the eyes of the law. All they are is an additional obligor on the original car loan.

When you trade it in to a dealership, you will satisfy the loan as part of the transaction. This will actually take the cosigner off the hook for the original loan. The cosigner will no longer have any obligation to pay the bank or other financial institution that provided the car loan. So, if anything, trading in your current car for a new one will actually provide a benefit to the cosigner since the cosigner can no longer be required to make payments on the car if you are unable. You can still bring your cosigner along if you want someone to hold your hand while you make the deal for your next car.

Trading in Is the Best Way to Upgrade Your Ride

When you are ready to buy your next car, stop at our dealership and see all the great new and used cars, trucks, and SUVs on our lot. Find the new one you want, and then use your current vehicle as a trade-in for your next one. This is simple, safe, easy, and the perfect way to get the best value for your current car. Whether you are looking to get a loan, lease, or just buy your next car outright, trading in your current car will give you the best value for the entire transaction.

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