Time is Running Out: Trade in the Old for Something New During Toyotathon
We are at the tail end of 2019, which means it’s the perfect time to trade in your old vehicle for a new one here at Mount Airy Toyota. Toyotathon is here, but not for much longer so you had better act fast in order to take advantage of the best possible prices on a large inventory of Toyota vehicles.
There is no easier and faster way to upgrade your Toyota than by trading it in for a newer, better one from Mount Airy Toyota. Our dealership is known for accepting a wide range of trade-ins, and we like to make the process as simple as possible. In no time, you can be driving away in a brand-new Camry, Corolla, Prius, or Avalon. Or, if you are looking for something more like the RAV4, 4Runner, Tacoma, or Sienna, we have those too.
Reasons to Trade in Your Old Vehicle for a New One
Yes, trading in your current vehicle when you purchase a new one at a dealership is the simplest way to go, but that’s not the only reason to go this route. From convenience to tax savings, here are several reasons why trading in your vehicle could be the best move for you to make:
First, let’s expand on the most obvious reason trading in your car can be a good decision: it’s easy and fast, especially compared to other methods. For example, if you opt to sell your car privately, you usually have to handle any major and minor repairs, take good photos of the car, meet with multiple prospective buyers, haggle the price, and complete a ton of paperwork.
If you’ve decided to buy a new vehicle, however, you simply walk into the dealership and explain to a team member that you want to trade in your current vehicle. The dealership will do the heavy lifting from that point. Typically, someone in the pre-owned vehicle department will take your current car for a test drive and perform an appraisal. The dealership will then bring an offer to you, and if you accept, you will sign the title over. That’s it.
When you trade-in your vehicle and buy a new one from the same dealership, everything can be handled at the dealership itself. Selling through a third party or at a different dealership usually requires you to drive to multiple places, such as the dealership you’re selling your car to, the dealership you’re purchasing the new car from, the DMV, and so on.
Reduce paperwork! There is so much paperwork involved when selling a vehicle, and if you sell across state lines, it can become downright overwhelming. However, if you trade-in your car at a dealership, they will handle all the paperwork on the spot. Since car dealers are well-versed in such transactions, they will know how to quickly file each document to the corresponding DMV, and all you’ll have to do is sign on the dotted line.
- Lower Price on New Car
Another advantage to trading in your vehicle is the lower price you will receive on the new one. This is particularly the case if you own your old car outright. That is, if the dealer purchases your old vehicle for $8,000, and your new vehicle costs $29,000, you will only be paying or getting a loan for $21,000. This also means that you will pay less sales tax on the new car since the final price is thousands of dollars less.
- Compatibility with Existing Loan
Many people think you can’t trade in your vehicle if you have an existing loan that you are still paying down. Here’s the good news: You can! And it’s actually a common occurrence for dealers to acquire old loans as part of a new car transaction. Typically, a dealership will pay the remaining balance of your loan, acquire the title directly from the lender, and if you have equity in the car, that amount will go toward the down payment for your new car.
Some consumers are afraid to trade their old vehicle into a dealership if they owe more on the loan than the vehicle is worth. However, while being upside down in a loan may not bring you the most money, trading it in is still the easiest and least stressful method of getting rid of your old vehicle.
- Tax Savings
Trading in your vehicle has the potential of saving you a significant amount of money. In many states, you are only required to pay sales tax on the final sale price of your new vehicle after it is reduced by the amount that you and the dealership agree upon for the trade. Then, you only have to pay sales tax on the remaining net cost—or final price—of the new vehicle. So, if the sale price of your new car is $24,000, and your trade-in is valued at $7,000, you will pay $17,000 on the new car, and you will only pay taxes on the $17,000.
What’s Special About the End of the Year?
In the Fall, many automobile manufacturers begin to roll out the next year’s models. During this time, dealerships often have a lot of inventory, which means two things for consumers:
- There are a lot of models to choose from.
- Dealerships will want to make room for the newer models coming in.
At Mount Airy Toyota, we have hundreds of 2019 and 2020 Toyota models to choose from. And since we need to make room for even more 2020 models streaming in, we need to move out the 2019s. In other words, we are ready to negotiate a good deal on trade-ins, especially for the 2019 models! And don’t forget about Toyotathon, as you can score the biggest deals on new Toyota models through the end of the year.
Other Factors that Determine the Best Time to Trade-In
While the end of the year is a great time to trade in your old vehicle for a new one, there are other circumstances that indicate it’s time for a change:
- Vehicle Depreciation
Depreciation is a big factor in whether you should trade in your vehicle now or later. All cars lose value once they leave the dealer lot. What you want to consider is how long you have owned the vehicle and whether it was new or pre-owned when you originally purchased it.
The fastest depreciation typically occurs during the first three years of owning a vehicle. So, if you bought your vehicle new, it’s best to wait until the depreciation rate begins slowing down (for some vehicles it doesn’t slow down until four or five years of ownership, so research your particular make and model). You will come out better in the trade-in once your vehicle’s depreciation has leveled off.
If the vehicle in question was pre-owned when you bought it, chances are the depreciation has already leveled off. And, since age and mileage are sometimes factored in during a trade-in, it’s usually best to trade the vehicle in as soon as you can.
- Major Repairs
When your old vehicle needs a repair that will cost more than what the vehicle is worth, it’s a good time to trade it in. Sure, you should take care of little fixes, but get an estimate for the repair needed, and keep in mind that dealerships can do major repairs for less than you would have to pay.
- Safety and Reliability
Anytime you have a vehicle that gives you safety or reliability concerns, consider trading it in. This could be due to an accident, age, mileage, or any other factor that compromises the safety or reliability of the vehicle—and, more importantly, those inside of it.
- Everyday Needs
There may be nothing wrong with your vehicle, but if your daily needs have changed, it still might be time to trade in the vehicle for a new one. Perhaps your family has grown and you need to upgrade to a full-size SUV or minivan. Or, maybe you’re commuting a longer distance for work than you used to and will be better suited with a more fuel-efficient car.
Quick Tips for Getting Prepared
If you’ve decided to go the trade-in route while purchasing your new vehicle, here are some simple tips to help you get started:
- Research Your Vehicle
Knowing what your car is worth is important when it comes to negotiating its trade-in value. Go online and research the value of your car; Kelly Blue Book is a great source for this. Be sure to include all the information in your search, including the make, model, year, mileage, and condition of the vehicle. It also might make a difference if the vehicle has been in an accident. Once you get the information, bring a printed copy or show a digital copy to the car dealer you’re working with.
- Clean Up the Vehicle
It’s important to fix your car up as nice as you can before bringing it into the dealership. No, you don’t need to worry about having major repairs done since the dealership will take care of that. However, cosmetic issues (e.g., scratches on the bumper, dings on the panel, etc.) can bring down your trade-in value. If your vehicle has cosmetic damage like this, get a repair estimate from a trusted repair shop so you can determine if it’s worth fixing.
Moreover, it never hurts to do some simple cleaning before you present your car to the dealer. Be sure to run it through a car wash and vacuum the interior (shampoo it if it’s especially dirty).
It’s hard to go wrong by trading in your old vehicle for a brand-new Toyota model. Here at Mount Airy Toyota, we’ll make the process easy and convenient, and we’ll work with you if you have a loan that you still owe money on. Plus, it’s the end of the year, which means some crazy deals are happening for 2019 and 2020 models!
If it’s time for you to ditch your old car for a new one, give us a call at (336) 786-2118 or drop by our dealership for a test drive. We look forward to seeing you!