What Questions Should I Ask Before Trading in my Car?

Are you looking for a new or used vehicle? Do you have a car to trade-in as part of the process? Before you head to the dealership, there are a few questions to ask yourself so that you're prepared at the dealership. There are many advantages to trading in your car at the dealership instead of selling privately, but both are options that you can consider.

What's My Car Worth?

No one likes hearing their car is worth less than they thought and it's an easy thing to avoid. First, look at the Kelly BlueBook value of your vehicle. This is a good starting point and will give you a price range that your car may be worth at the dealership. Several factors can affect the price range including the mileage on the car, the condition its in and any extra features it may have. Remember, the BlueBook value is just a range and you could get a different number when you arrive at the dealership to trade in your car.

As you look at the value of your car, you'll notice that there are different ranges based on trading in at the dealership or selling your car privately. So, why would you want to trade-in at the dealership? One of the biggest benefits is the convenience. The dealership will make you an offer on your vehicle at the same time you're looking for something new. The other benefit, when trading in your car, is that when you buy a new vehicle, you only have to pay taxes on the difference. So if you trade in a car and get $10,000 for it and then purchase a vehicle for $25,000, you'll only pay sales tax on the $15,000. This applies for vehicles purchased at Utah car dealerships.


Do I Owe Anything?

When you arrive at the Southtowne Automall to value your trade-in, they will ask you several questions including if you owe anything on the vehicle. It's best to come prepared and know the payoff value of your car before you head in. Finding the payoff value is usually pretty easy! With the convenience of online banking, you can easily find the payoff value or you can call your lender directly to find out the payoff amount. If they ask, get the payoff value for 30 days out because the dealership may take some time to send the check.


What if I Owe More Than My Trade-In Value?

Unfortunately, sometimes you owe more on your loan than what your car is worth. Being upside down in your loan can be a stressful experience but you have options as you head to the dealership to trade in your car. If you have extra money, you could pay off the difference of the loan so that the value of the trade-in and your balance are the same. If that's not an option, you can also include the difference in the financing for your new vehicle. Depending on the value of your vehicle, your lender may not allow this or have higher interest rates when the loan-to-value ratio is too high.


Am I Ready to Buy Something New?

Now that you've figured out the range your car may be worth and you know how much you owe, the next step is to decide if you're ready to buy something new - and if you are, what you are looking for. What type of vehicle are you looking to buy? What does the car need? Are there features you'd like it to have? Understanding these questions will make the process smoother for you when you head to the dealership in Sandy, Utah.

You're ready to trade in your used car once you've asked yourself these questions! Head to the dealership of your choice at the Southtowne Automall and get the process started. You'll be able to get a trade-in value on the same day that you look for a new car. The process is simple and you'll love the new car you buy.