When buying a car, you will need to decide what you’re going to do with your previous vehicle. Sellers have the option of a private sale, or a dealer trade-in. There are benefits and drawbacks to trading in Used Cars in Connellsville, which will be discussed below.
Advantages of a Trade-in
It’s simple. Many drivers have a hard time selling a vehicle privately; it requires time, money, effort, and vulnerability. Trading your car in at the dealership allows you to avoid all these hassles, and many dealers will make an offer and take possession of the car the same day.
You can trade in a financed vehicle. If your car isn’t paid off, the dealer will pay the balance to the lender. You will be able to get a different car without paying off the first loan. Due to the poor economy, many people owe more than their vehicles are worth, and trade-ins are a great way to get out of a bad loan situation.
You can get down payment help. When a car is traded, the dealer applies positive equity to the purchase price of another vehicle. If you have enough equity, you can get into a new car with little or no upfront cost.
You aren’t liable for mechanical issues. Even if you sell your vehicle ‘as is’ to a private party, that person may still pursue you for repairs. When trading to a dealership, they assume responsibility for the vehicle and you have no additional commitment.
Disadvantages of a Trade-in
You’ll usually get a lower price than in a private sale. Car dealers are there to profit, and they make their money by buying used cars at low prices. Depending on the dealer you choose, you will likely get an offer below or approximate at Kelley Blue Book value.
You get no credit for maintenance costs. Depending on your vehicle, it can be expensive to keep it running. When cars are traded in, dealers don’t consider any money you spent on maintenance. Expenses like repairs, tune-ups and tires don’t count, and you can’t recoup your investment.
There’s no guarantee the dealership will buy your car. Many dealerships will take almost all Used Cars Connellsville, but there are cases where the vehicle will not be purchased. If a particular vehicle is out of buyers’ favor, or if the dealer already has a collection of similar vehicles, they may decline your offer.
