How do you trade in a vehicle when buying a new car?

Let us break down the facts on trade-in vehicles. Dealers love trade-ins and want them. Right now, there is a shortage of used cars nationally. Why? Because cars are lasting longer, buying cycles are extended and many times your current car is being handed down to a new driver or a neighbor is buying it.

Unlike new cars, used cars are unique vehicles.

Your trade-in is very important to the car deal. How do you trade in your vehicle when buying that new car? Having a trade alongside your new car purchase will always give you a better deal. Of course not from a trade value perspective, but rather your overall price goes down with the trade-in included. It’s a way for the dealer to have options to subtract or add. For example, more in your trade or more off of the price. It’s really six and one-half dozen the other.

As a dealer, any time there is a trade-in, the deal is better.

How do trade-ins work with CarSnoop?

So with CarSnoop, having a trade-in when you buy a new car also helps you. When submitting details on your trade-in vehicle, it is vital to tell the truth about your car. Be honest and take accurate photos. If you have damage, show it. If you have new tires, provide that information. In some case, tires on a trade can equate to $1,000 or more with trucks, SUVs, luxury or high-performance vehicles. The dealer will factor that into your trade value. Because once the dealer gets your car, it goes straight into the service department to prepare it for the new owner. If you’re not honest, you’ll enter into renegotiation on value and completely disregard the foundation of the CarSnoop process.

What about sales tax?

In many states you get a tax credit. How is that done? The amount of your trade is deducted from the purchase price of your new vehicle so you only pay tax on the difference. So, think of it this way…just because you didn’t get $500 more for your trade on a $50,000 car, you paid $1,750 more in tax by removing your trade.