The best time to trade in a car is when you've surpassed your budget or it's about to break down.
this is because the maximum amount of money you can get out of trading in a car will be at its highest point if the value of the vehicle has dropped significantly, and alternatively if it hasn't increased then there may not be any significant difference between selling it privately or trading it in.
how long should you keep a car before trading it in?
a car's value can vary a lot depending on where you live and what the average age of cars is in your area. rather than focus on a one-size-fits all answer, do some research on trade-in options for various vehicle types in your region. some websites worth looking at are kelley blue book for us buyers–use kbb's average true market value calculator to find out an approximate value of any car, given its mileage and car type–and auto trader uk for european buyers. automobile magazine offers tips from new car sales experts about what to look for when considering a used or certified pre-owned vehicle.
please note that consumer reports shares information about how to predict how long it will take an
what's the best time to trade in a car?
the best time to trade in a car is when you know all the tax consequences and have ironed out any necessary restrictions.
the irs will assess a large fee for failing to report a sale or exchange of assets, so it's important that if it's possible, taxes should be handled before trading in a car. it would also be wise to answer any legal obligations disclosed by your contract with the dealership or manufacturer regarding your purchase agreement, such as cancellation penalties or “lemon” rights. proceeding with caution beforehand can help maintain stability during this type of personal financial undertaking.
can you trade in a car that you still owe money on?
unfortunately there is no clear answer to this question as it varies from person to person and the type of loan you have. most banks require that an asset be completely paid off before they can finance another one, so you might want to bargain with the dealer and see if they'll work it out for you, but don't count on it. anonymous | january 21st 2015, 4:28pm est
does trading in a car hurt your credit?
yes. but it does not stay on your credit history unless you do not make a payment for a long period of time.
we love helping people figure out ways to buy that car, but we need you to think about how buying that car now will affect the next car you want or how much house you can afford in the future. in order to get a loan from a traditional lending institution, as well as some vehicle trade-in quotes from dealerships, lenders sometimes require six months of positive credit reporting before extending an offer for purchasing anything else for between six and twelve months after purchase because it's likely they'll need to pull your entire credit history – and yours gets notified every time someone checks your report.