Ford Vehicle Trade-In Benefits
If you’re ready to purchase a new or new-to-you car, you must consider what you want to do with your current vehicle. You can gift your vehicle to a friend or family member, sell it privately, or take it to a dealership as a trade-in. If you want to make a profit from your vehicle, you must sell it privately or trade it in. Both options can offer a good return on your investment, but one is generally easier than the other. Here are some of the advantages of trading in a car.
Reduced Sales Tax
You must pay a hefty sales tax on any new or preowned vehicle you purchase. In the state of Tennessee, the sales tax is 7% of the purchase price. If you’re paying the average $48,400 for a new car, you’ll have to pay $3,388 in taxes.
A trade-in provides a handy loophole to paying taxes on the full price of the car. The trade-in value is applied to your new car before you pay for it. This means that your trade-in immediately lowers the purchase price of your next car and trims off a portion of your sales tax. Even receiving $1,000 for your vehicle would save $70 in sales tax, so the tax benefits here add up fast.
Hassle-Free Process
Trading in your old vehicle is much quicker and easier than attempting to sell it privately. When executing a private sale, you must manage the car listing, respond to interested parties, and organize test drives. You also have to negotiate the price, collect the buyer’s payment, and handle the paperwork associated with the sale. This can take weeks, depending on how coveted your car is.
Selling your preowned vehicle to a dealership eliminates the back-and-forth of working with different parties, gauging interest, and executing the minutia of the sale. You don’t have to meet with strangers or supervise their inspections and test-drives. Instead, you can go directly to the dealership that is already interested in buying your vehicle. The dealership will walk you through the paperwork and streamline the process of transferring your title, allowing you to exchange your used car for an upgrade with minimal difficulty.
As-Is Acceptance
It’s hard to stomach the cost of car maintenance and repairs for a vehicle you plan to sell soon. If you know you’re not keeping your car much longer, it may be wise to skip the expense and time of your final visit to the service center. You probably won’t get away with this if you sell the car privately. Most private buyers prefer a car in good condition and up to date on all its maintenance visits. If you find a buyer, you must accept a steeply discounted price.
Most dealerships are happy to accept your vehicle as-is. They have all the equipment and employees needed for an inspection, tune-up, and minor repairs. You can skip the time-consuming maintenance visit and final expense of tuning up your vehicle by going directly to a trade-in.
Instant Down Payment
Trading in your vehicle essentially rolls it over into a down payment for your next vehicle. As we mentioned, you won’t have to pay sales tax on the amount you’re awarded for your trade-in. It goes directly to the cost of your new car if you purchase your next vehicle from the same dealership.
You typically need to provide some form of down payment to finance a new car purchase. If you don’t already have a down payment in your pocket as cash, trading in your old vehicle is the best way to generate this cash. If you’re flexible about the timing of your sale, trade-in your car in the spring or summer when car sales peak. Dealerships often pay more during these seasons.
Adding your trade-in to the pot is smart, even if you have cash. There are many benefits to increasing the size of your down payment. The more you put down, the less you have to finance. Since you pay interest on the amount you finance, your down payment instantly reduces the total cost of your new car.
Streamlined Automobile Upgrade
You’re likely selling your current car because you’re ready for an upgrade. If you sell your vehicle privately, you could face a gap in transportation while making your next purchase. This is especially true if you need the money from your car sale to fund the next purchase. Going without a vehicle presents a significant inconvenience if you can’t access a second car. Trading in your car allows you to move seamlessly from one vehicle to the next with no gap.
Visit Jones Ford to Experience Trade-In Benefits Today
If you’re ready to trade in your current vehicle for a great new car, come to Jones Ford in Savannah, Tennessee. We have a wide range of new and pre-owned vehicles for you. If you don’t see what you want on our lot, we can buy your used vehicle outright and send you home with cash. Get an instant cash offer on your vehicle now. If you like what you see, visit our lot to finalize your trade today.
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