Terms to Know When Trading Your Car
Trading in your car can be one of the best ways to move forward and get closer to the car of your dreams. There may be countless reasons why you’re trading in a car – your existing one doesn’t have the features you want, the payments are too high, or you are simply ready for a newer model.
At Prostrollo Motor Sales, our goal is to make it as easy as possible for you to trade in your car. As such, we’ve established a few terms that you should know.
At Prostrollo Motor Sales, our goal is to make it as easy as possible for you to trade in your car. As such, we’ve established a few terms that you should know.
7 Terms to Know
You never want to go into a situation where you have to ask too many questions or feel as though you’re being taken advantage of. We recommend familiarizing yourself with these terms so that you can be more confident about trading in a car.
Retail Value
The retail value is the amount of money that a dealer is likely to sell your trade-in vehicle for. It’s important to understand that the retail value is going to be higher than the trade-in value because the dealer is going to seek a profit.
If you want to obtain the retail value, the only option would be to sell your car privately. You’ll get a higher price, but it will also require more time, effort, and paperwork.
Loan Value
The loan value is what you will end up financing your new car for. There may be several steps involved to get to this number, including the trade-in amount, the down payment, and even any remaining amount that is left on your existing loan.
Trade-In Value
The trade-in value will be based on the amount that the dealer offers for your car. When the offer comes in, there is usually a bit of room where you can negotiate a higher amount.
Most of the influencing factors to the trade-in value include the age and condition of the vehicle, the mileage, and the demand for the model.
Trade-In Allowance
There’s a trade-in allowance that may be more than a trade-in value. It all depends on whether you’re simply selling your car to the dealership and walking away or if you’re going to be using the trade-in as a way to buy your next car.
If you trade in and buy a car from the dealer, the trade-in allowance will be the amount that you can apply toward the purchase of a new car within the dealership’s inventory.
Negative Equity
Negative equity is also referred to as being “underwater” or “upside down” in your loan. Essentially, this happens when you owe more than what the vehicle is worth.
Often, negative equity occurs if you want to trade in too soon after purchasing or if there is extensive damage to the vehicle that would affect its trade-in value. In some instances, you may want to explore if you have negative equity before trying to trade a vehicle in so that you can make more payments and conduct the transaction once you have positive equity.
Rolling Over
If you are “upside down” in your existing car, you will likely be rolling over the outstanding loan on your existing car onto your new loan. There are advantages and disadvantages to doing this. The size of your next loan will be larger, but it can help you to get out of a vehicle that you no longer want.
Termination Fee
If you don’t own your vehicle outright, there may be a termination fee that is charged. This is usually in your paperwork if you have a lease or a loan. The dealership will collect this fee as part of the transaction, though it may also get rolled into your new deal if you choose to trade in so that you can turn around and buy another vehicle.
Retail Value
The retail value is the amount of money that a dealer is likely to sell your trade-in vehicle for. It’s important to understand that the retail value is going to be higher than the trade-in value because the dealer is going to seek a profit.
If you want to obtain the retail value, the only option would be to sell your car privately. You’ll get a higher price, but it will also require more time, effort, and paperwork.
Loan Value
The loan value is what you will end up financing your new car for. There may be several steps involved to get to this number, including the trade-in amount, the down payment, and even any remaining amount that is left on your existing loan.
Trade-In Value
The trade-in value will be based on the amount that the dealer offers for your car. When the offer comes in, there is usually a bit of room where you can negotiate a higher amount.
Most of the influencing factors to the trade-in value include the age and condition of the vehicle, the mileage, and the demand for the model.
Trade-In Allowance
There’s a trade-in allowance that may be more than a trade-in value. It all depends on whether you’re simply selling your car to the dealership and walking away or if you’re going to be using the trade-in as a way to buy your next car.
If you trade in and buy a car from the dealer, the trade-in allowance will be the amount that you can apply toward the purchase of a new car within the dealership’s inventory.
Negative Equity
Negative equity is also referred to as being “underwater” or “upside down” in your loan. Essentially, this happens when you owe more than what the vehicle is worth.
Often, negative equity occurs if you want to trade in too soon after purchasing or if there is extensive damage to the vehicle that would affect its trade-in value. In some instances, you may want to explore if you have negative equity before trying to trade a vehicle in so that you can make more payments and conduct the transaction once you have positive equity.
Rolling Over
If you are “upside down” in your existing car, you will likely be rolling over the outstanding loan on your existing car onto your new loan. There are advantages and disadvantages to doing this. The size of your next loan will be larger, but it can help you to get out of a vehicle that you no longer want.
Termination Fee
If you don’t own your vehicle outright, there may be a termination fee that is charged. This is usually in your paperwork if you have a lease or a loan. The dealership will collect this fee as part of the transaction, though it may also get rolled into your new deal if you choose to trade in so that you can turn around and buy another vehicle.
Explore How To Trade In Your Car Now
If you have a trade-in, it’s time to move forward with learning about its value and how it can impact your current vehicle and car purchase – and even shopping for a new car.
At Prostrollo Motor Sales, we’re here to help you every step of the way. We accept trade-in vehicles, making the process easy and convenient for you to complete. Understanding your car's worth in the market is crucial for making informed decisions. We have an online form where you can value your trade even before you visit our dealership. By providing us with a few details about the car you want to trade in, we can help you to establish the trade-in allowance and manage any outstanding loan balances.
The trade-in value can be used towards a new car purchase or to buy a used vehicle. Our goal is to make trading in an old car and buying a new one as easy as can be. Financial considerations, such as how much money you can gain or lose, are important when trading in a vehicle. Trading in a vehicle can often be more beneficial than selling it privately due to the convenience and potential savings.
If you have questions about some of the terminology or need help with the process, we have friendly professionals who can help you. We advise customers not to pay for repairs that won't significantly increase the trade-in value. Additionally, trading in a vehicle when purchasing a used vehicle can offer significant advantages.
Call us to schedule a visit today or stop in to see us Monday through Saturday during operating hours.
At Prostrollo Motor Sales, we’re here to help you every step of the way. We accept trade-in vehicles, making the process easy and convenient for you to complete. Understanding your car's worth in the market is crucial for making informed decisions. We have an online form where you can value your trade even before you visit our dealership. By providing us with a few details about the car you want to trade in, we can help you to establish the trade-in allowance and manage any outstanding loan balances.
The trade-in value can be used towards a new car purchase or to buy a used vehicle. Our goal is to make trading in an old car and buying a new one as easy as can be. Financial considerations, such as how much money you can gain or lose, are important when trading in a vehicle. Trading in a vehicle can often be more beneficial than selling it privately due to the convenience and potential savings.
If you have questions about some of the terminology or need help with the process, we have friendly professionals who can help you. We advise customers not to pay for repairs that won't significantly increase the trade-in value. Additionally, trading in a vehicle when purchasing a used vehicle can offer significant advantages.
Call us to schedule a visit today or stop in to see us Monday through Saturday during operating hours.
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Olympic Chevrolet Buick GMC
500 4TH ST NE
HURON
SD
57350-1619
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