If you currently own a vehicle and want to switch or upgrade to another option, trading it in with a dealer can streamline the transaction. Essentially, the way trade-in cars work is you exchange your current vehicle for a price determined by the dealer. This amount is then applied to the cost of your new automobile to help reduce your future auto payments. To help shed more light on this common practice, here are a few important details to know before heading to the car dealership.

A Guide to Trade-In Cars

What Is the Process?

Before you go to the dealership, take care of any repair or maintenance issues that may take away from the value of the car, and have it detailed. Organize all the relevant paperwork—such as the title, registration, and anything related to the vehicle’s history. Next, bring your automobile and materials to the dealer.

The dealer will review the state of the vehicle and check it’s current market value to determine what price they’ll offer for the trade. Once you agree on the amount, you’ll sign some paperwork and select a new or used car that you want to take off the lot. The value of the trade-in is then applied against the cost of the purchase. The remaining balance is financed or paid in full.

Can You Trade Vehicles That Are Leased or Financed?

To get the most value for your trade-in car, it’s best to own the vehicle outright. However, you can still release your leased or financed car to the dealership. In these cases, the dealer will pay off the lender or the remainder of the lease. This amount is debited from the value of the trade-in. Any remaining funds can then be applied to your next purchase.

What Are the Advantages of Trading In Your Vehicle?

One of the main benefits of trading in your used car is that you don’t have to deal with the hassle of selling it independently and then shopping for a new vehicle. As establishments that handle these transactions every day, dealerships will take care of all the paperwork, so you can get back on the road quickly.

Depending on how much you received for your trade-in, the amount deducted from your next purchase may also help you save on sales tax.

Serving the Inland Empire, CA, area for over three decades, La Costa Auto Sales is a trusted resource for selling and buying used vehicles. If you have a trade-in car, these dealers will make the process quick, stress-free, and fair. To view their current inventory, visit this car dealership online. For questions about trade-ins or financing, call a member of their team at (909) 625-8797.