Car Trade-In – How does it Work?
After using your vehicle for several years, you decide it is time to get a new one. A common practice is to place the car on sale and run an advertisement, hoping to find a buyer. However, there is a better technique, which is to trade-in your vehicle with a dealership or lender.
The advantage of following this practice is that the vendor will be in charge of handling the entire situation. Once you show up at the dealership or lender, the organization will negotiate a deal. At the same time, you don’t have to deal with the hassle of waiting for a buyer to purchase your vehicle, which can take several months. They take care of all the paperwork, making your life easy and convenient.
What will the dealership/lender do?
The best part is that it reduces the amount you have to pay for the new vehicle from the dealership or lender. When you approach a dealership or a lender, their employees will take a look at your car.
They will conduct a physical inspection, to check if there are any issues with the aesthetics of the vehicle. Next, they will dig deeper and examine all the parts, to find out if there are problems. They may also take your vehicle for a test run, to check its performance.
Once the dealership or lender finishes conducting all the steps, they will make an offer, based on several factors.
The beauty of trade-in is that you don’t have to agree with the terms and conditions of the third-party if you are not happy with the offer. You always have the option of approaching another dealership or lender. At the same time, you should keep in mind that since the market is similar, there won’t be a huge difference in what they offer.
A great solution to negative equity
One major reason why trade-ins are popular among consumers is that it allows them to get rid of negative equity. If the car loan payments are more than the value of the vehicle, going this route will help you financially. The dealership or the lender will ask you to cover the difference or add it to your new car loan.
If you want to get great trade-in value for your vehicle, contact TakeTheDrive today!