Many people who are shopping for a vehicle are interested in replacing their current car, truck or SUV. Those car buyers are really trying to accomplish two separate things – they need to shop around for a car to buy and find the best way to get the most value out of their current vehicle.
You basically have two options for getting rid of a vehicle – sell it or trade it in to the dealership where you’re buying your used vehicle. The value of your trade in will be deducted from the purchase of the car you want to buy. You essentially get the value of your current car as a discount.
There trade-in route has several advantages over a private sale.
Starting the process is easy. You simply go to a dealership and have your vehicle appraised. You do not have to deal with many of the hassles of trying to make a private sale, like marketing your own car and dealing with prospective buyers. If you accept the dealership’s trade-in offer, all you have to do is sign the title over. If you have an auto loan or there are lienholders on the title, the dealership can handle all the logistics of cleaning it.
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