When you begin shopping for a new car, you may find yourself surprised at the high prices. Even without all the add-ons and extra accessories, a basic car can cost $15,000 at the minimum. Once you decide what you want to purchase and that you can afford it, you’ll have to come up with the money.
It’s always wise to put a down payment on a new car, but it doesn’t have to be cash you have on hand. You can trade in the car you already own. This will help reduce your total new car costs. Some dealers might agree to giving you a deduction from the price of your new car since they can re-sell your used car. If your used car doesn’t have much value, research how much you can get as a trade-in. Dealers may pay $500 for your used car if the parts are still good and can be reused.
If you decide you want to trade in your old car, keep that information to yourself until you begin negotiating the price of a new car with the dealer. You should also make sure your old car looks as good as it can. It may cost extra to get it cleaned, inside and outside. If you purchased a car extended warranty on your old car, notify the dealer of this. This is an indicator that you have taken good care of the car. Also make sure you research the price of your old car, as well as the one you are looking to purchase.
Another perk to trading in your old car is that you might only have to pay sales tax on the difference in price between your old car and the new one you are purchasing, depending on the state in which you reside.
Your car may not be of much value to a dealer. If you find this to be the case, consider selling it yourself. You can then use the cash you get from your car to put toward the price of a new car.
Published in by CARCHEX on November 13, 2014