Should You Trade Your Vehicle in on a New Car

Posted Tuesday, Jul 23, 2013 by nhtwpprod

For some people, making the purchase of a new car automatically means trading in the one they already have, to take some of the sting out of paying a new loan. Before you go to the car dealerships in Los Angeles who are advertising super offers on trade-ins, there are some things to consider.

One of the first things to consider is whether you really have no use for your current vehicle. If you are just trading it in to get a newer or different model because you like the features, and nothing is wrong with the current vehicle, you may have other drivers who will benefit from keeping it. If your teenager is getting ready to get a driver’s license, you may benefit from having an older model vehicle for them to learn in. Another perk is that depending on what state you live in and your insurance company, coverage for your teen may be less expensive if they are on the policy for a lower valued car.

Many people are completely at a loss as to a fair price on their trade-in. Don’t wait until you are at the Los Angeles used car dealerships to learn what you can get for your trade-in. Use the tools on this website to value your trade so you will have a good idea what to expect. Keep in mind that the amount will vary, depending on the condition of your vehicle.

If you still owe money on the vehicle you own, but you have your name on the title, you will still be able to use it as a trade-in. People do this all the time, but that doesn’t necessarily mean that it is a good idea. The money you owe on the vehicle doesn’t just go away. If you purchase a new vehicle for $25,000, and you get $10,000 on your trade-in but still owe $5,000 on it, the final amount you will be financed is $25,000, minus $10,000, plus $5,000, for a total of $20,000. If your new loan is for four years, and you only have two years left on your existing loan, you will be paying interest on that amount for twice as long, and at the current rate!

One way that you can reduce the payments on your new vehicle is to purchase a certified preowned Toyota that will still provide you with many years of good service without the price of a new vehicle. In fact, many people prefer purchasing a used Toyota, even when they have the option of purchasing any new vehicle they want! Getting the best deal when you purchase a vehicle can be a complex issue that requires some thought. At North Hollywood Toyota, we offer you all the advantages, and will help you make the right decision for your driving and financial needs.