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The benefits of trading in your car

trading in cartrading in car
trading in cartrading in car

 

The benefits of trading in your car

Are you tired of your car? Or have you seen a car you liked and want to buy it? There are many ways for you to sell your old car. You could find someone yourself who is interested in buying a car, sell it to a car dealership or you could always just do a car exchange.

Trade-ins have become one of the easiest ways to trade in your car. If you are unsure of trade-ins, here are a few benefits that might help you see things differently.

Before we get into that, there are a few things you need to look at in order for you to get the most out of your trade.  

The first is to find out how much your car is worth. That way you know what to expect and you know when the car dealership isn't giving you the value for your car.

Try to shop around before you decide on the dealership. You might find a dealership which could offer you more.

Before you plan on selling your car, whether privately or through a dealership, make sure you have these two things sorted out.

  • Your car's appearance. This would be important. Make sure your car is in good condition, it's been serviced and is clean.
  • If your car needs to be sent to be repaired, do so. Even though dealerships can repair the car themselves, it is better for you to do it yourself as this can help when negotiating as dealers might deduct the repair costs from your offer for the car.

Once those two things have been sorted, then you’re well on your way to trading in your car. Here are the benefits.

 

You only have to deal with your dealer.

Selling your car can become a drag. But if you do a trade in you only deal with your dealer. This is great especially when you're busy as you don't have to worry about finding yourself a buyer. The dealer will handle everything for you, which saves time and takes you one step closer to owning the new car you want.

 

Everything is faster with trade-ins

This is a plus when if you’re busy. You don't have to advertise your car and you don't have to meet with potential buyers. You also don't have to wait a long time before selling your car. With trade-ins, you could sell much faster.

 

Better value for your car

Many car dealers are willing to negotiate with you. You could end up getting more money compared to selling it to someone yourself. There's nothing better than getting a good deal on something.

 

Cover your balloon payment with a trade in

If you decide to trade in your car and you have finished your monthly payments including interest and the only thing left from your loan balance is the lump sum, you can pay off your balloon loan with the trade-in money.

An authorised financial services provider will assist you in choosing the best time when you can a trade in your car which will help get more out of your trade-in and also cover your outstanding balloon payment balance.

Now, refinance isn't the only way you can settle the outstanding balloon amount.

If you don’t have a balloon payment and you have an outstanding balance on the car loan you took out through a registered bank, you can still trade in your car.

If you plan on trading in your car that has an outstanding balance, it would be best to trade in once you have reached your breakeven point. Your breakeven point is when the value of your car is more than the money you owe. Once it’s reached that point you will be able to trade-in and pay off your outstanding balance without taking from your savings.

But if you trade before your breakeven point, you will have to pay off your loan with your own money since the value for the car won’t be enough. It's best to find out from the bank when your breakeven point is.

Tip: These are the documents you will need.

  • Proof of ownership: If you have paid off the car and have no outstanding debt, you need to get proof of ownership which states you have no outstanding balance on this car.
  • If you have outstanding finance: You will need to request a settlement letter which you can get from the financial service and registered credit provider. Inform them that you are planning on selling.
  • Roadworthiness certificate: This is obtained at the vehicle testing station. Keep in mind that the certificate is only valid for 21 days.
  • NCO form: This is a change of ownership form. This needs to be submitted to the municipal Traffic Department informing them that the car has a new owner.
  • Receipt and service history: The dealership will need the original manufacturing service book as well as any receipts from when you took your car for maintenance or repairs.
trading in car