Used Car Trade-In

If you are in the market for a used car, you can use your current car as a trade in to help lower the purchase price. The first thing you need to know is how much your car is worth. There are a few different factors to consider, and every car will be different.  It will depend on the make and model of your car if it is a really old car that may have an impact on the trade in value. The number of miles you have on the car will also be something that is considered. Cars are now built to last a really long time so what may seem like a lot of miles to you may really not be that many.  The condition of your car will also be factored in. It really is a formula with different variables that the dealer will help you calculate.  You can use sites like Kelley Blue Book to get a general idea. 

Trading your car in to a dealer is a smart idea because it lowers the price you will have to pay. They will make you an offer and it's usually a fair price. While you don't receive cash in hand, you will definitely feel the impact in the long run. When you have cash in hand you are more likely to spend it on fun things and have to worry about where the money is coming from later. Trading a car in for a used car will possibly lower your payments or the length of your loan. 

You could sell your car in a private sale but then you have to deal with trying to find a buyer. You may not find a buyer for a few months. You will have to deal with people coming to look at it, test driving it, advertising it, wondering if they are really interested or not or if they will actually make the payments to you. If your car is worth a lot, a private buyer may ask to make monthly payments. That usually doesn't work out well. You can be stuck waiting for payment and not have your car. Getting the car repossessed can be expensive.  It can be a huge hassle. 

Trading in your car when you buy a used car is a smart choice because the dealer knows what your car is really worth and it is an investment in the purchase you want to make and definitely worth it in the end.

Author Note: Sheila is the owner/editor of the popular blog SheilaCakes, a blog that covers everything from parenting, to family travel tips. Follow her blog to learn more helpful tips.

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