What Are The Benefits of Trading in Your Vehicle?

When it’s time to buy a new car, you probably have quite a few questions. Should you trade in your vehicle so you can put the value toward a new car, should you hold on to your vehicle, or should you sell it to somebody else? These can be tough questions to answer, but you can start by going over your options and learning about their advantages and disadvantages.

In particular, trading in your vehicle comes with many benefits. Read on to explore the reasons you might consider trading in your vehicle when you’re ready to buy a new one.

Trading in Your Vehicle Still Lets You Finance Your Purchase

If you want to get a vehicle loan to pay for your next purchase, you can do so while also trading in your vehicle. In fact, you may have more financing options if you do a trade-in because it can help lower your interest rate.

You can also trade in your vehicle if you already have a loan. For example, if you have a loan on your current vehicle, you can roll over negative equity into your new loan and continue to pay off just one loan. Any positive equity will roll over into your down payment on your new vehicle.

Trading in Your Vehicle Reduces Sales Tax

If you trade your vehicle to a dealership, you can expect to pay less on sales tax. In Oklahoma, you should expect to pay a tax of 3.25% on new vehicles. If you buy a used vehicle, you can pay an even lower rate of sales tax, depending on the car’s price. With a trade-in, you don’t pay sales tax on the value of the vehicle you give to the dealership.

For instance, if you buy a brand-new vehicle without a trade-in at $30,000, you can expect to pay sales tax on the full amount. In comparison, if you trade in a vehicle worth $10,000, you can expect to pay sales tax on just $20,000 of the purchase. This saves you a lot of money and perhaps makes trading in your vehicle more financially lucrative than selling it elsewhere.

You won’t get this benefit if you sell your car to a third party. You’ll still have to pay the full tax amount at the dealership, even if you sold your car specifically to pay for your new vehicle.

Trading in Your Vehicle Saves Time and Work

One of the biggest downsides to trying to sell a car is that it takes time. Even if you have a great car available, there are some situations in which you could struggle to unload your vehicle.

For example, you could pay to place ads online, post great photos of the car, and spend hours taking phone calls about the car. You might even spend hours cleaning and detailing your vehicle so that it looks its best. In some cases, people spend hundreds of dollars repairing their vehicles to entice buyers. But at the end of the day, week, or month, it still might not sell quickly.

While trying to sell a car may feel like it’s taking forever, it’s much quicker to simply trade it to a dealership. If you choose to trade your vehicle to the dealer when you buy a new one, the process is as simple as going to the dealership, signing paperwork, and then leaving in your new vehicle. You don’t have to do anything special to your car besides remove your personal items.

Trading in Your Vehicle Helps You Get Cash on Less-Than-Perfect Cars

Even if your vehicle isn’t in mint condition, you can get something for it at the dealership. While the appearance of your vehicle may turn away third-party buyers, the dealership might still be interested in your car. It may have plans to repair the car and sell it, send it to the auction, or use its parts. No matter the mileage or cosmetic issues with your vehicle, you should have no problem getting a bit of value in exchange.

This also means you don’t have to repair your vehicle before you trade it in. In many cases, this saves time and a lot of money. The dealership makes repairs to ensure that the vehicle is ready for purchase in the future, and you can simply take off in your new car.

Trading in Your Vehicle Removes Doubts

When you accept payment from a third party, you might still have questions about the process. For instance, you may be cautious about taking a check from a stranger. It could be fraudulent, or it could completely bounce, and the other person already has your vehicle and its title. You may have little recourse.

When you bring your car to a dealership as part of a trade-in, you get cash you can count on. The value of the car is taken out of the transaction right away, and you never have to worry about fraud or scams that leave you in a worse position.

Trading in Your Vehicle May Be the Best Option Right Now

If you’re trying to figure out what you want to do with your current vehicle, you have a big decision ahead of you. While you may not be sure if you want to trade your vehicle right now, speaking with the dealership can offer more insight into which choice would be most beneficial financially and personally. You may find that the answer isn’t necessarily as simple as it appears on the surface.

At Seminole Chevrolet Buick GMC, we understand how valuable your vehicle is to you. We also know how important it is for you to feel comfortable with your car’s trade-in value. Take a look at our new car inventory and determine which vehicle you might want to purchase next. You may find that the best way to get a new car you love is to trade in your current vehicle. If you have any questions about the trade-in process, give us a call at 405-748-0171 or send us a message today.

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