Are you in the market for a new car?
If so, you may want to think about using your current car as a trade-in.
To get the best deal with your old car trade-in, you need first to learn how trade-ins work with a used car dealer. You also need to have information that shows what the market value of your car is.
This way, you will be able to go into a car dealership and make a deal on your used vehicle that is fair to you as well as the car dealership.
What kind of trade-in is valid?
You can use any trade-in as long as it still has some market value.
If the value of your vehicle is less than $500, you probably do not have enough market value in your car to trade in your vehicle.
The value of your vehicle will depend on some factors. The most important factors are listed below.
- Age of the vehicle- The age of your vehicle will be one of the most important factors in determining how much you may be able to get for your car trade-in. There are some various sources you can use to help you find out what your car is worth which we will discuss in the next section.
- The condition of your vehicle/mileage- You need to assess the condition of your vehicle to get a reliable estimate of your vehicle at the time you take it to a dealer. Provided it gets at least a “fair condition” rating, you should be able to get a nice trade-in value for your vehicle. Mileage is also a primary deciding factor on how much you can get for your vehicle as a trade-in. It is more important than the age of your vehicle. As they say, it’s not about the years. It’s about mileage.
- Make and model- Various makes and models of vehicles carry different values. For example, such coveted makes and models as a 2008 Corvette will hold more value than a 2008 Taurus. This is because a Corvette is a sports car and carries a top dollar price when it is new. So, provided it is in good condition at the time of your trade-in, you should expect to get a good amount that would be higher in value than a more common model like a Ford Taurus.
- Special edition status- If you have a special edition car such as the 2014 Lamborghini Veneno Roadster, (valued at over one million dollars), you should not only be able to purchase a new car; you could probably buy the used car lot, too!
- Classic car status- If you have a car that is considered a “classic car,” these vehicles have a unique value. Since they are so hard to find on the open market, dealers may pay you several times more than you’d get for a current vehicle. Of course, the age and condition of the vehicle are important, too. You may also have a bargain more in some cases since many regular car dealers prefer not to handle classic cars. They are harder to sell to ordinary customers, and they have special insurance requirements.
- Current market value- The current market value is the most important factor when negotiating a trade-in. Dealers will usually look up the current value and stick to that, or they may offer a price slightly lower than the current value.
- Damage estimate (hail, flood, etc.)- If you have hail, flood, or other damage, you will get a substantially lower trade-in value. Hail-damaged cars are tough to move because people do not want a car that is flawed or damaged by natural events, floods, or vandalism.
How to Get Your Car Ready for a Trade-In
Just as you would do before interviewing for a job or special event, you should do some preparation before taking your car as a trade-in.
Clean out your car inside and out to make it more attractive to a potential car dealership.
If you plan enough ahead of time, you may want to cash in on your car insurance policy and file a claim for hail damage or other types of damage if you have not done so.
If you have comprehensive coverage, you will be able to get your hail damage repaired in most cases. This will increase the value of your car somewhat if the cosmetic damages are not evident.
When you take it to your dealership, you will have to be honest and tell them you had some hail damage, since there is a little liability attached to this.
But provided you illustrate that it did not damage the inside of your car mechanisms, and you’ve had it repaired, you can significantly raise the cost of your trade-in value.
Where to Check the Market Value of your Trade-In
It’s best to do your homework before you take your car to a dealership to ask for a trade-in arrangement.
Consult with one of the following sources and locate your vehicle make and model. You’ll be able to find out the trade-in and market value pretty quickly this way. (We recommend using Kelly Blue Book since this is the industry standard that most dealers go by.)
- Kelly Blue Book
- True Car
Discounts for Trade-Ins
If you think you have a trade-in, great! That means that you can get a discount on your price when you purchase a new or used car at your local auto dealer’s location.
This can take up to $2,000 on a new or used car that you want to purchase. This amount will vary based on the factors mentioned earlier.
Mileage is one of the major factors that will determine your trade-in amount.
So, if you plan to trade in your car at some later point in time, try to drive it as little as possible so you will get a better deal.
How to Get an Auto Loan
If you have a trade-in that you can offer a car dealership (or even if you don’t), there’s no reason you cannot get a car loan to purchase a new or used car. Even if you have less than perfect credit (or downright bad credit), you can still get an auto loan if you know who to ask for help!
At Valley Auto Loan, we understand that circumstances sometimes lead to getting a few bad marks on your credit.
Medical bills, college tuition, and expenses, or even just time away from your job can lead to credit problems.
If you have failed to pay some of your credit card bills, medical bills, or other payments over a long period (6 months or more), you may end up with bad credit.
But that’s okay when you deal with us. We understand all of this, and we believe that everyone deserves a second chance.
We have been successful in getting our customers the credit they need to qualify for an auto loan for many years. And we want to help you get into the car you want, too!
Why use us for your auto loan?
You may see many deals this time of year about buying a used or new car.
Auto dealerships ramp up their offers and advertise their vehicle lineup on local TV stations, newspaper ads, and radio all in an attempt to get new customers looking to purchase a new car.
But before you can purchase a new vehicle, you have to have the credit to do it.
Few people can walk into a car dealership and fork over $7,000 or $20,000 — only the rich and famous deal in cash. So you need an auto loan.
Credit problems often force people into finding cheap “fly-by-night” dealerships that offer poor quality vehicles, damaged vehicles, and other options that are not a good choice for the consumer.
But at Valley Auto Loans, we will work with you to find the best auto loan for your needs. We can do this because we are connected to a large number of excellent lenders who are ready and willing to help.
They trust us, and we can be your “middle man” between them and our customers. We will work for you to get you the best deal!
We are proud to say that we have close to a 100% acceptance rate! Now, that’s not bad.
So if you are feeling overwhelmed and don’t know what to do to get a new car, we have the answer.
We are considered America’s #1 car finance provider. We got to be #1 because we offer quality deals and great auto loans for new buyers, as well as refinance plans if you need to refinance your vehicle.
Don’t wait. Today is the time to check out the selection and apply for an auto loan.
You can be driving home tomorrow in the car of your dreams. So check out what you have for a trade-in and let’s make a deal! You can also call ahead at 1-866-782-7961.
Fill out our form today to get started. Your new car is waiting for you.