Advantages of Trading in Your Vehicle

You’re excited to buy a new car to improve your commute or your family errands. But what do you do with the one that you have now? You could sell it and put some cash in your pocket. Or you could trade it in, which will give you advantages that you may not have thought of.


Nothing could be more convenient than trading in your vehicle. You just take it to us at Puklich Valley City, hand over the keys, and drive off in your new purchase. We’ll take care of your trade-in from then on.

If you decide to sell your vehicle on your own, you will have to wait a while before it puts any money in your pocket. Before that happens, you’ll need to make it look good with a thorough cleaning, and do any repairs so that you get the most money for it.

You then have to place an ad either in the newspaper or online, for which you’re going to have to take pictures and write enticing copy. After the ad runs, you have to deal with phone calls, schedule a time for buyers to come down and test drive the vehicle, haggle for the price, and do a title transfer. You hope, of course, that the check that they give you will not bounce.


A trade-in can end up giving you more money in the long run. Whatever value we assign to it is lowered from the price of the vehicle you buy. The loan amount will then be lower, which reduces the monthly installment and the total cost over time.

For example, assume you want a $30,000 car that you can finance at an Annual Percent Rage of 2.9 percent over 48 months.

  • Your monthly installment without a trade-in equals $663 for a total of $31,824 over the life of the loan.
  • With a trade-in worth $6,000, your monthly payment drops to $530 for a total of $25,440. When the loan is paid off, you will have saved $6,384 or $384 over the trade-in allowance.

If you want to determine your monthly payments with different trade-in values, try our Monthly Car Payment Calculator.

Reduce Negative Equity

If you plan on buying a car without reducing the loan amount through a trade-in or down payment, you run the risk of negative equity. The money that you owe on financing will be less than the value of the car. If your vehicle is totaled or you have to sell it, any compensation that you receive will not pay off the loan.

Negative equity happens because a new car depreciates by as much as 20 percent when you drive it off the lot. The value drops by a further 10 percent after the first year. If you do not account for this depreciation, you will have negative equity on the vehicle.

Adding a trade-in reduces the chance of this condition, especially if the value of your trade is equal to or greater than the expected depreciation of your purchase.

Retire Existing Loan

If you have an existing loan on your vehicle, it’s almost impossible to sell it to a third party. You because you will not have the title. Your lender will only give you this required document after you pay everything off.

You do not have to worry about your current loan when you buy a car from us. We have no problem paying off your current financial obligation before structuring an installment plan that works with your budget.

The only possible issue could be that if you have negative equity your on your car. You won’t be able to pay it off with refinancing because it’s not worth the loan. In that situation, you can pay off your loan before you buy a car, finance your loan with another loan, or have us pay it off and incorporate the loss of value into your new loan.

Next Steps

If you’re interested in trading in your current vehicle or want to know what it’s worth, contact us at Puklich Valley City. Our finance team will be happy to show how that trading can figure out in any financing that we offer. You may want to consider getting pre-approved for a loan by filling out our convenient online form. You’ll then know what you can afford in advance with a trade-in and confine your shopping to options in that price range.