Trading in a vehicle can be very stressful for some car buyers. This is especially true for those looking for a poor credit auto loan. At Complete Auto Loans, we have seen this all too often, and we sympathize with the distress and worry many of our customers have during the trade in process. For this reason, we are the premier lending service for customers seeking poor credit auto loans.
Assessing the Value of the Car
If customers plan to trade in their vehicle and are counting on its value to supplement their vehicle purchase, then they might want to take a few steps to understand the real value of the car. The car’s value should be assessed on factors like mileage, condition, and age. Unfortunately, many car buyers are surprised when their car’s value is seemingly under-assessed by their local car dealer. Customers should check the Kelley Blue Book value of their car so that they are able to haggle with the dealer when they determine their trade in vehicle’s value.
Negative Equity Affects Trade In
Another important aspect to the car buying process is negative equity. If a customer owes on their car but would like to trade it in to buy a new car, negative equity could be an issue. This is when the car for trade in is worth less than the amount owed on it. Really, this is only a problem for those who want to buy a new car before they are finished paying off their current car. In this case, additional payments will need to be paid. This makes the overall price of the loan much more than it would have been normally.
The Value of a Negative Equity Trade In
There are a couple of reasons a customer should choose to accept a negative equity trade in. For instance, if the car repairs on the car are becoming too costly and there is no warranty, this might be a good idea. A negative equity trade in could also be profitable if the car is too expensive to insure and drive.