Is It Better to Trade In or Sell My Current Vehicle?

Mar 19, 2015

Whenever you are looking at getting a brand new car and disposing of your current vehicle, you need to determine whether it is more beneficial to trade in the vehicle or attempt to sell it on your own. People often assume they have to trade in their current car or truck. However, this is not the case, and you are free to either trade it in at your new car dealer in El Paso or attempt to find your own buyer.

Benefits of Trading In Your Current Car

The main reason for trading in your current vehicle is in those situations where you lack any form of down payment. Most lenders want to see buyers commit a percentage of their own money towards the purchase of their new Kia from Kia dealerships in El Paso. The amount of money contributed does not have to be cash and can be in the form of a trade-in, as long as the trade-in has sufficient value. In some cases, some lenders might require some additional cash when the value of the trade-in is not enough.

Another reason to trade in your car is if you still owe money on the vehicle and cannot afford to make two monthly car payments. Your El Paso Kia dealer will take the value of the trade in, subtract the payoff amount owed your current lender, and deduct any remaining value off of the purchase price of the new Kia. Keep in mind, if you owe more on your current loan than it is worth, the dealer is still able to accept it as a trade-in. However, any amount in excess of the current value is added to the purchase price of the new Kia.

Benefits of Selling Your Car Yourself

One reason to not trade in your car and to sell it yourself is when there is a big difference between the trade-in value price and the private resale price. Sometimes this discrepancy can be several thousands of dollars, and you may not want to lose the additional money. You do not have to sell the current vehicle before you purchase your new one. However, if you take this route, you are probably going to need a cash down payment in order to finance your new Kia. After you sell your car, you can use the proceeds to pay down your new car loan.

In the event you are leasing your new Kia, while you could trade in your current car, the value of it is sometimes more than the required lease deposit. If you do not intend to keep the vehicle at the end of the lease period, it makes more sense to sell the car yourself and put the extra cash in your pocket.

Shop for your next new Kia today by visiting us, here at Integrity Kia today, or call us at 915-856-2982 for friendly and professional assistance finding your new car.