Trading In A Car Considerations
30 Sep 2024 | Buying A Used Car Articles
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Is it a good idea to Trade-in your car?
For most people, trading in your car at a dealership is a convenient solution to a problem, especially if you still owe money on it. You simply drive your car into the dealership and they appraise it. This means they inspect and research information about the vehicle before giving you a price for it - then you can decide what you want to do. If you aren't ready to buy a new car and just want to sell your vehicle, we can help with that too.
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Is it better to sell the car yourself?
While trading in a car is convenient, it’s not always the most financially rewarding option. The alternative to trading in your car is to sell it. You can do this yourself or you can sell it to us. If you do it yourself, you may get a little more than the dealer is willing to pay, but it does come with some extra work. You will need to photograph the car and list it on a major site like Trade Me. You will then need to make it available for potential buyers to come over to view and test drive. Finally, you will need to negotiate the best sale price you can. If you still owe money on your car, you will need to organise the buyer to pay a portion to the finance company to clear the title and the rest to you.
Other Car Trade In FAQ’s
Read on to find other commonly asked questions for trading in your car with Enterprise Motor Group.
Can You Trade In a Damaged or Non-Running Car?
Many people wonder, can I trade in a damaged car or can you trade in a car that doesn't run? The answer is often yes, but the trade-in value will be affected. Even if your vehicle has mechanical issues or body damage, Enterprise Motor Group may still accept it as a trade-in. The value will be adjusted to reflect the repair costs, but it can still be a viable option to get rid of a problematic vehicle. We will happily assess the car and let you know any options available to you.
Trading In a Financed Car
Trading in a financed car is another common scenario. If you still owe money on your current vehicle, you can still trade it in. We’ll determine the trade-in value, and if it’s less than what you owe, you’ll need to cover the difference. If the trade-in value is more than what you owe, the surplus can be used towards your next purchase. We’re also often asked how soon can you trade in a financed car? Generally, you can trade in a financed car at any time, but consider any early repayment penalties with your current loan. Trading in a car with finance owing is something we deal with regularly and we can guide you through this process with ease.
How will we process your Trade-in valuation?
The dealer will first determine the wholesale value of the car. This is the amount another car dealer will pay for it, taking into account what they need to spend to bring it up to a sellable condition, as well as the margin they will need when they resell the vehicle. If you owe money on your vehicle, the dealer will find out exactly what is left owing and pay this to the finance company for you. This amount is then deducted from what you actually receive for your car.
E.g., If the trade in value is $7,500 and you still owe $4,000 to the finance company, you receive $3,500 towards the car you are buying.
Making the Right Choie for Your Car Trade In
Whether or not to trade in your car depends on your individual circumstances. Consider the convenience, your vehicle’s condition, and your financial situation. At Enterprise Motor Group, we strive to provide fair trade-in values and make the process as smooth as possible. If you’re still asking ‘how does a car trade-in work,’ our friendly team is always ready to answer your questions and provide expert advice.
If you are thinking about a vehicle trade-in in NZ, then come on in to discuss your options in person. If you are looking for the best minimum trade in deals, please speak with one of our sales team who can run through any current promotions available across our range. Visit us today to discuss your trade-in options and find your next vehicle.