How come so many dealers just don't allow as much for trade ins?
It takes a lot of time and experience to determine a proper value on vehicle trade.
Here at St J Auto, we don't just look at your trade, we spend time with you and your vehicle so we understand the history and care of the vehicle. We then drive the vehicle and report our findings to experience purchasing agents to reference multiple resources to find out what your vehicle is really worth. We do all of this to ensure you are getting the most for your trade and that we can purchase the vehicle from you with confidence. Return to top.
Trading in your current vehicle towards another can partially offset the cost of the new vehicle. The trade-in's net value goes towards the purchase or lease of a new car. Conditions of a trade-in vary depending on who owns the vehicle.
If you own the vehicle, trading-in means that you're selling the car to the dealer for some determined price. As a result, the price of the new car goes down, only.
If you are leasing a vehicle and do not own it, trading-in means that the seller of the new car agrees to pay the outstanding costs associated with the lease. Depending on the financing of the new vehicle and the outstanding balance on the old one, trading-in can either raise or lower the new car's price. Return to top.
Why is it beneficial to trade-in?
When you trade-in you don't have to worry about selling the vehicle yourself or any of the associated costs (advertising, showing the car, etc). A dealer may offer a price you could not get yourself as an incentive to purchase a new vehicle. If the trade-in has known problems that could plague you later (when the buyer returns complaining), selling the car to the dealer eliminates the bother. Trading-in a lease car may relieve you of, in the long run, monthly costs you cannot afford. Sometimes people trade in lease vehicles because of poor gas mileage or lack of practicality. Return to top.
Why decide against trading-in?
If you think you can get a better price selling your vehicle privately, and it's worth the time, money and effort, do not sell to the dealer. Some cars are of special interest and dealers will not always recognize those interests. Return to top.
What happens to a trade-in?
Some are kept by the dealer and resold as used cars. Many are sent to auction and purchased by other dealers for resale. Dealers know that auction prices often will not match the sum credited toward a new vehicle, but they absorb the losses as sales incentives. Return to top.
How much can I expect to get?
Check used car values in guides issued by organizations such as Edmunds.com or the National Automobile Dealers Association (NADA). Often both trade-in and private sale values are listed. Factors such as mileage, overall condition, damage and known mechanical problems heavily influence the trade-in value. Return to top.