When the time comes to buy a new vehicle, many buyers wonder whether they should offset the cost of their purchase with a car trade-in. Understanding when you should trade in your old vehicle can help you maximize its value, letting you put more toward your new ride. Here are some things to keep in mind.

When is the Best Time For a Car Trade-In?

Generally speaking, its best to trade in your old car if it will provide enough value to help reduce future monthly payments on a new vehicle. 

You’ll also benefit from trading in your vehicle before it starts requiring frequent repairs. A good rule of thumb is to trade in your car by the time yearly repair and maintenance costs are at or near the total value of the vehicle, or if a specific repair will cost over half what the car is worth.

Trading in an old car saves a lot of time and trouble. Rather than trying to find private buyers, you can get an offer from the car dealership that will count toward the value of the new vehicle you’re buying. This will reduce the initial price and the sales tax you’d have to pay for the new car.

Car Trade-In Considerations

Before trading in your car, it’s a good idea to look up its Kelley Blue Book® value so you have a better idea of what to expect. You’ll also need to gather documents like the car’s registration, title, and any other related documents. Bring the keys and your driver’s license as well.

If your old vehicle still has a loan on it, you can trade it in, but it’s better to do so if the value of your car is greater than the amount you still owe on your loan. This lets you use equity toward the new car purchase. If you owe more than the car is worth, you will have to pay additional cash to your original lender to complete the car trade-in.

Whether you’re planning a car trade-in or want an additional vehicle for your family, stop by Discount Auto Sales in Mountain Home, AR. Dealer Principle Jamie Mann leverages over 15 years of auto industry experience to help you find the right vehicle at the right price for your needs. To learn more about their current used car inventory, visit them online or call (870) 425-1775.