Trading in your current car can help lower the cost of your next vehicle purchase by applying its value toward your down payment. The process is simple:
Get Your Trade-In Value – The dealership or an online valuation tool will assess your car’s market value based on factors like make, model, condition, and mileage.
Receive an Offer – Once evaluated, the dealer will provide an offer, which you can accept, negotiate, or decline.
Apply the Trade-In Value – If you accept the offer, the trade-in amount is deducted from the price of your new car, reducing the amount you need to finance.
Settle Any Loan Balance – If you still owe money on your current car, the dealership may pay off the remaining balance. However, if your car’s trade-in value is less than what you owe (negative equity), you may need to pay the difference or roll it into your new loan.
Benefits of Trading In:
✔ Convenience – The dealer handles the paperwork, saving you time.
✔ Tax Savings – In some states, you only pay sales tax on the price of the new car after subtracting the trade-in value.
✔ Lower Monthly Payments – A higher trade-in value reduces the amount you need to finance.
Want to see how much your car is worth? Get an instant trade-in estimate at Auto Bandit today!
