According to AutoTrader, "used-car sellers can expect upwards of a 200% return on their investment by cleaning their car before trading or selling their ride." To put this into real numbers, spending $300 to have your vehicle cleaned beforehand can result in up to a $600 increase in sale or trade in value. The difference in whether you skip this step or not could be the difference in thousands of dollars you will either save or pay out. This may be the most overlooked step when trading in a car with a loan. If the deal isn‘t what you wanted, then walk away and visit the next dealership until you find what you're looking for at the price you are comfortable with. Shop around and keep in mind that dealerships need to make the trade in work more than you do. Just like with anything else in life, the best deal isn't always the first deal you find. Getting financed ahead of time allows you to focus on negotiating the best deal for the trade in versus trying to also negotiate the best interest rate on your new auto loan. You can even use a checklist to get everything ready ahead of time to make the application process for a new loan seamless. In addition, when working with a local credit union like OneAZ Credit Union in Arizona, you can sit down with a banker and determine the best options whether you have positive or negative equity in the car. Instead of getting financing through the dealer, visit a local credit union or bank to get much better rates than what the dealership can offer you. One of the best moves you can make when trading in your car to the dealership is to get financing ahead of time. Keep in mind, the trade in value will likely be lower than selling your vehicle yourself. Power to determine the fair price for your car's trade in. You can visit sites like Kelley Blue Book and J.D. Next determine how much your current car is worth. This will give you the exact amount you owe to pay off and close out your current loan. Simply make a call to your lender and ask for the 10-day payoff letter. The first thing is to determine how much you owe on the vehicle. However, it's still wise to have a step-by-step plan before you start the process of trading your vehicle into the car dealership. Whether you have positive or negative equity will determine if you will need to make up the difference or apply the equity towards the new loan. When you trade in a financed car to the dealership for a new financed car, the lender takes over the loan and then pays it off. This means you’re financing your new car’s value plus the remaining amount you have to pay off. The dealer will almost always suggest you simply roll that negative equity of your current loan into your new auto loan. Last Option: Roll the Negative Equity into Your New Car Loan.A good option but not always ideal is to delay the trade in until you are no longer upside down or until you save up enough cash to pay the difference. Once you determine how much you owe and how much the dealer is willing to pay you for your current car, write a check for the difference to release the title. The best decision you can make when you're facing negative equity is to save up cash and pay the difference out of pocket. Best Option: Pay the Difference Out of Pocket.There are three options when you have negative equity. We’ve all heard that the value of a car drops immediately after you drive it off the dealership lot, so newer car owners may find out they have negative equity in their vehicle. Negative equity, the amount you need to pay off
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