How to Trade in a Car

How do Trade-ins Work for Cars?

A reputable dealership makes it easy for you to understand how to trade in a car, truck, or SUV. Our team can help you navigate the trade-in process so that you get top dollar for your used vehicle. Schedule an appointment to learn more.

Dealerships such as Ray Skillman Auto Center have access to the latest appraisal tools and best practices. This means you’ll get a competitive trade-in value on your used vehicle. Before you trade in your used car, you’re probably wondering how does a trade-in work on a car? Today, we will break down the basics of what you need to know so that your trade-in process can be hassle-free and the most cost-effective possible.

Do you Own or Lease Your Current Vehicle?

Before you can consider the question, “How does a trade-in work on a car?” you first need to understand how car ownership impacts a trade-in. If you own your vehicle free and clear, you can leverage the value of that vehicle towards a new purchase. However, if you still owe payments or lease your vehicle, the equation changes. The remaining balance on your car note may not lower the market value of your trade but may lower the amount of equity you have in the car (and thus the amount of value available to you). And if you are leasing, instead of renewing your term agreements, you can purchase the vehicle outright or trade it in for a newer model.

When you hear the term “trade-in,” however, dealers are usually referring to vehicles that you own. Drivers typically are looking to sell their vehicle to a dealer so they can put the profits toward a new vehicle purchase.

Know Your Vehicle’s Value

Knowing your vehicle’s value will help you determine how much you can save, what vehicles to shop for, and whether you’re getting a good deal. We offer a convenient and free-to-use online vehicle valuation tool that will give you an instant offer on your used car.

We use the latest market data to help determine your vehicle’s value and compile available information to provide the most competitive rate possible. There are a number of other online tools, including Kelley Blue Book, that can help you determine your vehicle’s value based on its condition as well.

Consider the Timing

Timing is everything when you are trading in your old vehicle. Specific times of the year, including tax season and the New Year, can be great times to sell your vehicle for the best price possible.

You should also consider when certain auto bills are due as well. For example, if you’ve got a registration or car insurance bill coming up, you might want to consider trading in your vehicle before those bills are set to renew. After all, it is not the wisest financial decision to sell your vehicle right after you’ve paid a bill like annual registration fees on it.

Get Your Vehicle In Ready Shape

If you’re trading in your vehicle, a dealership appraiser will inspect your car to make sure it’s in an appropriate condition. Getting your vehicle ready beforehand can help maximize a quote.

This means repairing any minor issues, giving your vehicle a thorough clean, and making it look its best. A good rule of thumb is to take a thorough look at it and ask yourself if you would buy this car in this condition. Once you feel your vehicle is ready to go, it’s time to bring it to your local dealer, where you can expect an instant cash offer. With most trade-ins, you can usually walk away with cash in hand or use the trade-in value towards a new vehicle purchase.

Schedule Your Appointment At Ray Skillman Auto Center

At the Ray Skillman Auto Center, we are committed to helping drivers of all financial circumstances get behind their perfect vehicle. Often, trading in an old ride is the best way to bring down costs toward a new vehicle purchase. If you’re wondering how to trade in a car, we’ll help you get a competitive quote on your trade-in and explain the factors that go into our appraisal. Visit us online, or stop into our showroom and get an instant cash offer today.