Are you looking to upgrade your vehicle while making the most of your financial resources? Trading your vehicle to a dealer could pave the way for a win-win situation. In this article, we’ll explore the numerous advantages and financial benefits that await when you choose to trade your vehicle with a dealer.
Get a Sales Tax Break When You Trade-In
In many jurisdictions, when you trade in your vehicle to a dealer, the value of your trade-in is deducted from the purchase price of the new vehicle for sales tax purposes. This means you’ll only pay sales tax on the difference between the new vehicle’s price and the trade-in value, reducing your tax liability. For example, if your vehicle is worth $10,000 and the vehicle you are purchasing is $35,000, you will only pay Sales Tax on the difference of $25,000, not the full $35,000.
Trade-in allowance as a down payment
When you trade in your vehicle, the dealer typically provides a trade-in allowance, which is the value they assign to your old vehicle. This trade-in allowance can be used as a down payment towards the purchase of a new vehicle. Using a trade-in allowance as a down payment can reduce the amount you need to finance, potentially lowering your monthly loan payments and interest paid.
Save on detailing and reconditioning costs
When you get your vehicle ready to sell, you will want to keep it clean and free from trash to show the vehicle at its best. If you do not have the desire or ability to do this yourself, it can be quite costly to pay someone to do this for you. The cost of soap, wax, supplies, and your time all factor into the inconvenience and cost of selling the vehicle yourself. Every Principle Auto Group dealership has a team of detail professionals on hand and can do this for much less than an individual.
Let the dealership handle the advertising for you
Where are you going to market your vehicle? How much will it cost? Will you cast a large enough net to attract the largest number of potential buyers? Will the pictures you take need editing before you upload them? How many pictures will you need to take to get noticed? Every Principle Auto Group dealership has professionals on staff that handle all of these things when you trade your vehicle in with them. Not to the mention the negotiation with a stranger when you sell your vehicle yourself.
No need to pay off your existing loan in full
When you trade in your vehicle to a Principle Auto Group dealership, we will take care of reaching out to the financial institution on your behalf to get the correct payoff amount and include that in your new transaction. As we do this thousands of times each and every year for our Guests, we know how to handle this quickly and efficiently.
Avoid the wait time to purchase a different vehicle
When you decide to purchase a new vehicle, trading it in directly to a Principle Auto Group dealership is the quickest way to drive off in a new vehicle. How long will it take to clean, market, field offers, and handle the financial details from potential buyers until you can go to the dealership to purchase your new vehicle? Is the new vehicle still at the dealership or will you have to wait for the next truckload to arrive? How do you get to work or take the kids to school if there is a week or two delay between the time it takes to sell your vehicle and get into a new vehicle? Do you have your title and other paperwork ready for the transaction?
Your transaction is safer at a trustworthy dealership
We live in a world of risks and liabilities. You take on certain risks when you sell to another party. What happens if the vehicle is wrecked on the test drive? Do you want the inconvenience of strangers coming to your home to see the vehicle? Do you want to be able to drop whatever you are doing to meet up with a stranger to show them your vehicle? Will you remember to clear the data from your vehicle’s onboard computer system so that a potential criminal element can’t take advantage of your data? Will you remember to delete the garage door code on the “HomeLink” module to keep a thief from coming back to your home and opening your garage door while you are away?
When you factor in the cost and risks of selling your vehicle to another party on your own, trading it with a reputable dealer like any of the Principle Auto Group dealers is a no-brainer decision. From the beginning to the end, our team of professionals will provide you with a detailed breakdown of what your vehicle is worth using the most state of the art and up to date pricing information available. Any potential benefit or “better price” of selling to another party is quickly diminished when the tax savings, convenience, and costs associated with selling a vehicle are factored in. We can even direct you to one of our websites where you can start the process of evaluating your vehicle and looking for that next perfect vehicle for you!
Sell your vehicle to us.