How To Trade In A Used Car In Fort Worth, TX?

When it’s time for an upgrade, you can trade in your current vehicle for a new one. Once the dealership determines the value of your old vehicle, you can put this money toward the new vehicle you purchase. Trading in your vehicle is a relatively easy process but requires a few more steps when you still owe money on the car. Let’s get to know more about what the trade-in process entails. View our inventory of Used vehicles or give us a call today at 817-367-4000.

Why Do People Trade in Their Cars?

When it’s time to get rid of your current vehicle, you can either sell or trade it. Although selling your car gives you more freedom to decide the pricing of your vehicle, it also comes with much more of a hassle. Trading in your vehicle is easy since the dealership does the majority of the work. What your car is valued at also goes toward the new vehicle you wish to purchase. People choose to trade due to the convenience of getting rid of their old car and getting a new one in the same day.

How to Trade in a Car

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Trading in your car is quite simple, especially if you’ve already paid it off in full. These are the steps for trading in a car you fully own:

1. Learn What Your Car Is Worth

Prior to bringing your car into the dealership, learn what its trade-in value is. You can do this by entering your vehicle’s information into our Value Your Trade tool. When filling this information in, be as accurate as possible so you know what to expect. Very few used vehicles fall under the “like new” category, so try to be mindful of the true condition of your car.

2. Bring Your Vehicle into the Dealership

When you’re ready to trade your vehicle in, bring it to the dealership to get professionally appraised. A staff member will give your vehicle a thorough inspection and take it on a test drive to determine its worth. Once they assess the value, they will make an offer. You can choose to accept this offer or negotiate the price. After coming to an agreement, you will conclude the deal by signing over the car’s title.

3. Let the Professionals Do the Rest

One major benefit of trading in your vehicle is that the dealership takes care of all the paperwork for you. Your role is to pay any associated fees and to sign the paperwork. Remember to carefully read over any documents prior to signing so you understand the terms and conditions. Along with the paperwork, the dealership can also help you shop for a new vehicle. Let them know your wants and needs as they show you their lineup.

What Happens If You Trade in a Car With a Loan?

If you paid off your car loan, trading in your car is simple. If you still have loan payments remaining, you will face one of these situations:

• Having positive equity: This means that what the dealership offers you is more than what you have left on your car loan. In this scenario, the difference would be applied to your loan first and then the remainder would go toward your trade. For example, if you have $1,000 left on your car loan but your car is worth $5,000, then $1,000 of it will go to pay off the remainder of your loan while the $4,000 will go toward your new vehicle. Overall, this is a good situation to be in.
• Having negative equity: This means that your vehicle is worth less than what you owe on your car loan. In this scenario, you either have to pay off the difference right away, take out a new auto loan, or roll what you owe into a new loan. For example, if you still owe $3,000 but your car is only worth $1,000, you’ll need to figure out a way to pay off the remaining $2,000 you owe.

What You Need to Bring to the Dealership When You Have a Loan

Whether you have positive or negative equity, it’s important that you bring in the following materials so the dealership can properly assess your situation:

• Loan information.
• Driver’s license.
• Vehicle registration.
• Proof of insurance.
• Your vehicle’s keys and remotes.

When Is a Good Time to Trade in a Vehicle?

When your old car is no longer suiting your lifestyle, it may be time to trade it in for something new. You can use the value of your current car toward a new or used vehicle. A good time to trade is when your car loan is completely paid off. This means that you have full ownership of the vehicle and can do as you please with it. With a car you fully own, you are getting the most from your money.

Although it’s not as ideal as fully owning a vehicle, trading your vehicle when it has positive equity can also be a good decision. A good portion of your trade-in value may go toward the remainder of your loan, but at least you won’t have to pay for the rest of the loan out-of-pocket. When your car simply isn’t meeting your needs anymore, you sometimes need to make the move even before paying your car off.

When Is a Bad Time to Trade in a Vehicle?

If you have negative equity on your vehicle, you need to think through your trade a bit more. If you truly need a new car, it can be worth taking on the extra expense. If you’re still comfortable with what you have, it may be financially wise to pay off the rest of your loan before trading your vehicle in. This way you can have a fresh start with your new vehicle without having to make payments to a car you no longer own.

When trading in a car you still own money on, make sure your lender doesn’t charge a prepayment penalty. Since they are making money off of your interest, they may charge a fee for paying off the loan early. That’s why it’s so important to make sure you understand what terms and conditions you’re agreeing to.

When you’re ready to trade your old vehicle in for something new, stop by Hiley Hyundai of Fort Worth. One of our experienced staff members can offer you a fair trade-in deal and get you behind the wheel of an upgraded vehicle.