When you buy a new vehicle from Glockner Chevrolet, you need to figure out what to do with your old car. You may think that selling it will put more money in your pocket. But trading it in for your new vehicle, which applies a credit to your purchase based on the value of your vehicle, grants you many benefits.

Convenience

If you try to sell your old car by yourself, you have to contend with the inconvenience of putting out an ad, taking pictures, and allowing buyers to look at the vehicle, most likely where you live. If you want to get the best price on your old vehicle, you're going to have to spend time and money to clean, detail, and recondition your old vehicle. Performing these tasks will cost you both time and money.

If they decide to buy, you then have to find a way to ensure that the check that you receive is legitimate. You have no idea if it is going to bounce or is somehow fraudulent. In addition, if you intend to use the money from the sale to pay for your new car purchase, you'll have to wait for the check to clear before you receive the funds.

If you trade your old car in, all you have to do is drive it to our dealership. You can then hand the keys over to your sales consultant. There's no question about the trustworthiness of the transaction because your trade-in credit is instantly applied to your purchase. You can then drive back home in your new car with no waiting.

Lower Payments

Because the trade-in is credited toward the cost of the vehicle, your loan amount goes down, which equals lower monthly installments and reduces the total cost over the life of the loan.

·         For example, if you buy a vehicle or $30,000 at an interest rate of 3.11 percent for a loan period of 60 months, your monthly payments will reach $541 with a total cost of the car loan at $32,432.

·         If you trade in your old car and we give you a credit of $5,000, your loan will only have to equal $25,000. Using the same interest rate and schedule, your monthly payments dropped to $450 for savings each month of $91. The total cost goes down to $27,026, a total savings of $5,406.

Tax Savings

If you buy a vehicle in Ohio that costs $30,000, you will owe sales tax on the entire $30,000, which is 5.75 percent or $1,725. If you sell the old car that you currently own to a third party, your transaction does not affect the $30,000.

However, if you trade in your old car, up to $5,000 can be applied to the purchase of a new vehicle without being subject to sales tax. Assuming your trade-in is worth $5,000 toward the $30,000 price, you will owe sales tax on only $25,000, which equals $1,437.50, a savings of $287.50.

Avoid Negative Equity

The value of your new car depreciates the second you drive it off the lot. In the first year alone, it can lose up to 30 percent with the percentage going down in subsequent years. If you do not account for this difference when you set up the financing, you may end up with negative equity. You owe more money on the loan than the car is worth, which makes it difficult to sell the new car in the future.

Trading in your vehicle can avoid this situation if your trade-in value is equal to or greater than the potential depreciation of the new vehicle. Your loan then equals the value of your purchase.

No Need to Pay off Your Existing Loan in Full

If you still owe money on the loan that you use to purchase your old car, you will have to pay off your existing loan before you put it up for sale. Only when you completely retire your financial obligation will you receive the title, which is necessary to transfer ownership to someone else.

Trading in your vehicle to us eliminates this problem because we can work with you to reduce your old vehicle's loan even if your credit is less than stellar.