When you go to a dealership, the car buying process is intimidating to a lot of people. The process that goes into trading in a vehicle is something that most people are blind to. There are certain things the dealership will need for information on your vehicle, there is a process that is required so nothing is missed for the accurate information for your vehicle's true appraisal value.
Keep these things in mind: if there is any balance left over after paying off what was owed when trading at a dealer, they'll take that amount as well as whatever interest accrued from then until now by rolling it into another new car purchase which will start up yet another negative equity cycle with no end date just around the corner. Here are some of the things to expect when you look to trade your vehicle in.
There is a difference between retail price and your trade-in value
Everyone thinks they are an expert when it comes to finding out how they can appraise the worth of their vehicle from using the blue book to different online auto trade-in evaluations. Several things get missed in such a process and we are here for you to better understand the best process to take for you to have a more accurate evaluation. Some people will take their vehicle to a few different dealerships and average out the three to get their value. This method is not always correct because some dealers will take some of the money that was allocated to the revenue of the car and will move that discount to what they are willing to pay for your vehicle.
Make sure you are comparing correctly. When you go online to autotrader.com for instance, you need to make sure when you compare your vehicle, do it apples to apples. Make sure you compare the kilometers, the trim levels, the condition, and be sure you are searching in the state you live in. Find a few comparables and you will find your dealer will be close to that number.
What information will you need to provide a dealer about your trade-in?
You will need to provide your VIN, Make, Model, Year, photo of the total miles, as well as photos of the inside and outside of the vehicle. We will be taking a copy of the vehicle registration and run a check to see if your vehicle has been in any reported vehicle collisions.
How does your vehicle work out in the deal with your new car?
How the deal is structured has many moving variables depending on what you are buying along with the car. If where you live is prone for vehicles to rust, you might want to purchase a rust protection package. If you have pets and kids, you might purchase a cloth and surfaces protection. Or if you are buying a truck, you might think to get a lift installed or better rims and tires package.
Whatever your total, you will be paying the difference of the trade-in value of your vehicle towards the principle of your new Chevy. If you are buying a Chevy that is $40,000 total and your trade-in is worth $15,000, your new total would be $25,000 on the bill for you to either finance or pay out of pocket. If you were to finance, you could use the value of your vehicle towards the downpayment for your loan.
Being prepared is very important when it comes to understanding the process of trading in your vehicle. Be sure you use this as a refresher guide when you go to trade in your next Chevy.
Happy new car shopping! :)