At Approved Loan Store, many of our customers ask about trade-ins when they set up an appointment. Can they trade in their car, and if they trade it in, how much will it help in buying their new car? In today’s blog, we are going to do a quick run-down of how trade-ins work and what advantage they can give to car shoppers, especially consumers with poor credit.
First off, how does a trade-in work? Let’s say that I have a car worth $14,000, and I currently owe $7,000 on it. I’m ready to buy a new car, but my credit isn’t good enough to just get a loan outright. Typically, I have three options available to me. One, I can hold onto my old car and save up enough money to make a large down payment on the new car. Two, I can hold onto my old car and find a co-signer with good credit. Three, I can trade in the car and put the value of it towards the new car.
The trade-in value of the vehicle can be calculated by subtracting the value of the car from how much is currently owed on the vehicle. For example, if I trade in the $14,000 car, it will count as about a $7,000 down payment on my next car. Note that the value of my hypothetical car is not how much the car was worth on the day that I bought it but rather what it is worth now. My hypothetical car has almost certainly gone down in value from the day I drove it of the lot. There are resources like Kelley Blue Book which list vehicles and their approximate trade-in values, so before I go to my Approved Loan Store appointment, I can know approximately what my vehicle is worth and how much I will be putting towards my new car.
Still have questions about trade-ins? Call Approved Loan Store today at 877-217-2217 and set up an appointment with a special finance representative today!
Is poor credit or no credit keeping you from getting the car you want? Approved Loan Store wants to help YOU! We will work with you and explore every possible option to get you into the car you want at terms you can afford! Get started today by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!
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