Best Time to Trade in Your Vehicle?
Posted Aug 25, 2023 07:00:36 AM.
Last Updated Aug 24, 2023 12:23:11 AM.
There’s a lot to consider
Car buying and trading-in rules have been turned on their head since the pandemic changed everything. But if you are in the market for a new or new-to-you vehicle, here are a few things you should know.
Begin with your current vehicle
First, you’ll want to take stock of the vehicle you have and be realistic about its value. Look it over with fresh eyes, almost as if you were buying it today, and determine its condition. Then check out trade-in values for the make and model year online. That will give you a good idea of its current trade-in value.
How’s your equity?
Another thing to research is whether your vehicle has positive equity. Is it worth more than the remainder of your loan? If not, you will need to add that amount to your new loan.
Speaking of loans, is there a pre-payment penalty if you were to pay out your current balance? It’s important to factor in all the costs of this transaction, so that you know if you’re actually coming out ahead.
Your credit score
Remember that a low credit score generally equals a higher interest rate. If you are having trouble getting approved, it might be wise to hold off while you work on raising your credit score for up to six months and then try again. Race Auto Group has finance professionals who specialize in helping those who’ve had credit issues to get back on track and into a vehicle.
Used car valuations
Keep in mind that since 2020, used car prices have risen by as much as 152 per cent. That can be good for you, whether you’re looking to trade in a relatively late model vehicle in good condition with low mileage or an older vehicle with some nicks and dings.
Is this a DIY project?
You’ll need to strategize for maximum profit and minimum inconvenience. Do you have time for managing a private sale? It takes advertising, responding to queries, the test drives, the paperwork. There’s a lot to be said for giving that work over to the professionals and saving yourself some headaches.
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