A car is one of the hardest workhorses that can elevate one’s quality of life — from having a more convenient and comfortable mode of transportation to the pride a person feels when taking on the road in style. A vehicle is also one of the biggest financial investments an average Australian can make, so it makes sense to maximize your auto steed before letting it go for a newer, better model.
If you’re looking to buy a new car, there are plenty of ways to let it go and make enough profit to ease the financial burden off your next big purchase. One option that may come in handy is a car trade-in, which can be a money-saving alternative when the situation is right.
What Is a Car Trade-In?
A trade-in involves selling your used car to auto dealers, which they can use either to sell its parts or resell to make a small profit. It’s a bang for the buck deal on both parties, especially since you can simply trade it in and roll out with a brand new vehicle.
Of course, it’s not the best choice for every situation since it’s unlikely you’ll get a good price for it. It can also be limiting since many dealers prefer to trade in a vehicle of the same brand, but it can be a good choice for the following reasons:
Exploring the Benefits of Trading Your Car in for a New Vehicle
- When your auto loan is reaching its end, trading it in allows you to keep the sale price without having to pay off the remaining loan;
- It can be a hassle to maintain the old car and repair its flaws out of pocket, so selling it to a private buyer may be harder. Trading it in, on the other hand, will be more convenient.
- You may need to trade in the car to your auto dealer to cover the cost of a balloon payment, which can come as much as 50 per cent of the car’s original value in one lump sum.
The Bottom Line: The Best Time to Trade-In Your Old Car
Trading in your old car has its set of advantages and disadvantages, but it can get complicated when it still comes with an incomplete loan. You’ll need to bring important documents to the dealer and take control of the negotiations, but having an impressionable interest rate and consult with your auto loan lender regarding the vehicle’s value.
Are You Planning to Trade in a Car with a Loan?
Positive equity with a good payoff amount can make things smoother for you and the dealer, but selling your car privately may be a better option if you have negative equity. Either way, Wealthy You can help settle your financial matters as our versatile mortgage brokers offer the best car financing options in Sydney.
Get in touch with us today at (02) 7900-3288 and see how we can get your dream ride with a payment plan that you can afford!