When considering a new car, you have a few options to finance it. One of which is trading in your existing car to offset some of the cost. Used alongside a Campbellville car loan, it can reduce the loan amount significantly.
It can also work with a down payment to reduce the car loan even further. But is trading in a good idea or would you be better off selling it privately?
Trading in your Old Car
A trade in involves selling your existing car to the dealership and putting that amount towards the cost of a new car. Depending on how much the trade in is worth, you can use it with a down payment or as full deposit alongside a Campbellville car loan.
Either way, it reduces the amount of finance you have against the car. This lowers the cost to you and can be viewed favourably by lenders as you are putting your money where your mouth is.
Dealership Trade Ins
Not all that long ago, trading in an old car was a problematic business fraught with dodgy dealers offering low prices for perfectly decent cars. We were never into that and always paid fairly but the practice was so common that trade ins became rare for a while.
Then the rest of the industry caught up with us and began paying fairly for used car. That, and a resurgence in demand for good quality used cars completely changed the landscape of trading in.
Valuing a Trade In
You can approximate the trade in value of your car by looking at comparable models for sale online. Check eBay, Auto Trader and other marketplaces to see how much your make and model sell for.
Make sure to compare like for like and get as close to your actual trim as possible.
A dealership will do the same.
- Make, model and trim
- Overall condition
- Reports or recalls
- Service history and repairs
We may also check Canada Black Book for current valuations.
Don’t expect full retail price for a trade in. That’s now how they work. You will get a fair price but it will be slightly lower than you would get on Auto Trader or eBay. That’s because we have to do a lot more work to prepare the car for resale, which costs us money.
Some of that we have to recoup by offering a slightly lower price.
The Benefits of Trading in your Old Car
There are significant benefits of trading in versus selling privately.
For one, you don’t have to haggle with strangers or let them drive you places in your own car while they test it.
You don’t have to risk being carjacked or having the car stolen. You don’t have to contend with test pilots or people who refuse to pay a fair price.
Instead, you get a fair price in a comfortable dealership with respectful sales people. We think those advantages outweigh any small price penalty!
So, when you’re considering trading up your car, also consider trading in. We can help with that, your Campbellville car loan and anything else you may need assistance with!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!