• When Should You Hold Off Trading In Your Car?

When Should You Hold Off Trading In Your Car? - Buy Sell Used Cars Oahu Hon Back to the top
When Should You Hold Off Trading In Your Car?

Trading-in your car to a dealership may seem like a convenient option. But before you opt for a trade-in , here are a few things to consider as well as an easier way that ensures you get the most value.

Your car depreciates in value –
Your car is a depreciating asset which means that it only decreases in value the longer you own it. If you have a loan on your vehicle and your car has decreased in value, you may owe more on the car loan than the car is worth at any given point, especially if you put less than 20% down payment on your vehicle, which may happen within the first year of owning the vehicle.

If you are not able to pay off this loan before getting a new car, the cost will end up getting added to the amount of the new loan on your new vehicle. Making your payments larger than they would have been if you had waited until you paid off your vehicle before trading it in for a new one.

If you have prepayment penalties
– On the flip side, if you are faced with a prepayment penalty, you may consider hold off trading in. A prepayment penalty is a fee for paying a loan off before the payment period is up. When a lender agrees to a car loan, they plan on earning interest off you for a specific period. If you pay off a loan early, you are depriving them of this income, and will likely have you pay a prepayment penalty. Not all auto loans have prepayment penalties so be sure to ask your lender about this.

If you own a newer car -
If you purchased a new, unused vehicle within the last year and are thinking of trading it in, it’s best to hold off. You can always trade it in or sell it later, which may give you the opportunity to make more money off the transaction.

If you are ready to sell your car, contact us today!
Selling the car to I Buy Cars Today gives you an option to get more value out of your old vehicle. Our offers usually fall between a typical big-box dealership's trade-in value and higher offer you'd get if you sold your vehicle through a private party transaction, but without the hassle! As a leading used car buyer, we will always offer a more significant cash value offer for your vehicle than a dealership will.

We make the process very simple. Simply
fill out our quote request form, and we will make you an offer that the dealership won't beat. Once we receive your inquiry, we will be in touch with you as soon as we can, and we'll make you a prompt offer.
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