So, you are thinking of having your car traded in for one that is not as expensive? This is definitely something that you can do. However, ascertaining how easy it is will not be easy, seeing as each individual situation is different. There are so many unique variables that come into play while trading in a car, like how much your car is worth, how much money you owe on it. And so forth.
Let’s jump right in and look at all of these considerations and how they impact the task and how easy it is to accomplish.
It turns out that the task of trading in a car isn’t the hardest one in the world to undertake. All you need to do is find out what vehicle you desire and the dealer will find out the actual worth of the vehicle. That way they will be able to ascertain the correct car valuation. They take the amount of money the car you own right now can be valued at and subtract it from the equation.
Let’s say that the automobile you want to buy is worth $30,000. The car you own right now is worth the exact same amount. You trade your current vehicle in for the one you want. However, you still owed some money on the car you originally owned. What happens to that debt? It rolls over, and you pick up another loan in order to make up the difference.
When your car is worth an amount of dollars of a smaller amount than the number of dollars that are left on your loan, this is known as negative equity. Here is an example that will help you to look at this clearly. A car whose negative equity will be two thousand dollars will be worth twenty thousand, while there is twenty two thousand owing on it. This needs to be sorted out if you are to be doing any trading in of said vehicle. Some folk refer to this as being “upside down on a loan.”
Paying this negative equity can be done out of your own bank balance if you have the dollars. However, some people instead decide to do it with a loan. It depends on how big it is. If the negative equity is only a few thousand, the money lenders are more likely to agree. But not if the amount of dollars we are talking about is much more.
This is not the same as trading an automobile in. When you have a car, and you surrender it, you are basically voluntarily having your car repossessed. You are admitting that you are in no position to be making the regular payments on your loan. Instead, you are choosing to give the car to the people who lent you the money in the hopes that it goes toward repaying the loan. If there is negative equity, this is still going to be your responsibility to pay.
Seeing as automobiles don’t increase in value over time, with very few exceptions to this rule, some folk may say that the answer is never. This is probably why many people instead choose to keep their vehicle for as long as they can. However, if your vehicle starts having serious mechanical issues, this can cut that timeline short, forcing your hand.
It is not unusual for a person to plan on trading their car in for one that is less expensive. What reasons do they usually give? Perhaps they have a growing family, so they need a car with better fuel economy. Or that growing family requires a larger vehicle, and the one they currently have is smaller but is also an expensive sports model. If you want, there are few websites that will tell you the worth of your vehicle. If the value begins to plummet, you can decide to get rid of it as quickly as you can before the value of your car bottoms out.
How easy this is going to be depends on how damaged it is, and what dealership you are selling to. If the vehicle in question doesn’t need a whole lot of repairing, then the dealer will be able to repair it themselves. Then they can sell the car at more than they got it off you for. However, if the vehicle is only good as a source of second hand parts, they may still say yes, but they probably won’t.
When it comes to selling a vehicle in bad condition privately, it is normally accepted to be an uphill struggle that most people don’t like to be a part of. This is why there are scrap car recycling companies. They are in the business of buying the automobiles that no-one else wants. Then they take them to pieces and sell those pieces as second hand parts or scrap material.
The problem with selling scrap cars is that most folk want a vehicle that will run. The amount of private buyers looking for scrap cars to buy so they can salvage them are few and far between. You will be waiting a long time for one to stumble across your “as is” advert online. And they will take advantage of the scarcity of buyers and low-ball the price.
Instead, get in touch with your local Auto Wreckers in Auckland, they will buy your car off you on the same day. They will come over and pay you instant cash on the spot. Call them or fill out their online form and tell them the make, model, age and condition your vehicle is in. The rest will be gravy!