Advantages of Trading in Your Car

Should I Trade in My Car?

The majority of drivers who purchase a car or truck usually own another vehicle that they would like to dispose of. They’re faced with an important decision: should I trade in my current vehicle to a dealership or should I try to sell it myself? Despite the attractive benefits of private selling, in most cases the obvious and most convenient decision is to simply trade your vehicle in and accept the dealers’ trade in allowance.

We’ll be discussing, the pros & cons of selling your car privately in our next article “Is It Hard To Sell A Car Privately?”

Sales Tax Savings with Trade-ins

One of the greatest benefits of the trade in format, comes with how sales tax on your new purchase is calculated. Across most of the country, when you trade in a car to purchase a new one, you will get some sort of sales tax credit based on the value of your trade. What exactly does this mean? States which allow a sales tax credit for a trade-in, calculate the tax you will have to pay on the final purchase based on the cost after the value of the trade is subtracted from the cost of the new vehicle. For example, if you are buying a new car for $20,000 and the dealership offers you $8,000 for your trade-in, you will pay sales tax only on the $12,000 difference! The existence of a bank lien payoff has no effect on the sales tax calculation. Whether the trade-in is owned free and clear with no bank lien, or the lien payoff is thousands more than the actual value of the vehicle, the sales tax savings will be the same. Any lien, or no lien, has no effect on the sales tax savings.

If you owe more on your old bank loan than the vehicle is worth, this is considered to be “upside down” or have negative equity in your old car. If your credit status is strong enough, the lender who is financing the second purchase might agree to refinance the negative equity, in addition to the new car loan. This refinancing arrangement is only available if you trade in your old vehicle.

Less Hassle

When the customer trades his old vehicle, all of the DMV tasks are handled by the dealer. The transfer of ownership, the assignment of title, the lien payoff, obtaining new plates and surrendering the old plates, are all handled by the dealer. If the trade in is sold privately, most of the DMV tasks must be handled by the customer.

Bottom Line

Trading in the old vehicle gives the owner the convenience, the sales tax savings and the freedom from any hassles after the sale. The only real issue remaining is whether the trade in allowance is fair. If the dealer really wants the trade, then the customer might ask for a larger trade allowance. As the trade in allowance goes up, the sales tax savings also goes up, and the amount financed on the new vehicle goes down.

The bottom line really depends on the reasonableness and fairness of the trade in allowance. If the trade allowance is way below the lien payoff to the bank, or simply far below the advertised prices, the customer must make a tough decision.

Whether you’re trading in your car to buy a new on or just looking to get rid of your current vehicle, Trust Auto makes it quick and easy. We utilize a multitude of reputable third-party data to establish the true market value of your car and get you a fast, free appraisal. Afterwards, we review your vehicle on-site and give you an offer through our transparent assessment process. When drivers trade in their old vehicle for a new one at Trust Auto, you can do so with the confidence of knowing that you will always get the fairest offer for your trade.

Tips for Buying Used Fleet or Commercial Vehicles

How to Buy a Used Fleet Vehicle

Many business owners and commercial enterprises have the need forpurchasing service vans, pickups, or larger delivery trucks. Whether your specific line of business is HVAC, Plumbing, Electrical, Telecommunication, Contracting, Delivery, Refrigeration, Food Services, or transportation.

In order to build a fleet of appropriate vehicles businesses need the services of a knowledgeable fleet manager, or someone charged with the responsibility of purchasing those vehicles, be they automobiles, trucks, buses or vans.

Acquisition of a vehicle fleet can be as simple as going to an established dealer and placing an order with the fleet manager for the vehicles needed. Conversely, and depending on the financial resources of the operation, the fleet may be assembled the hard way, trying to locate and purchase appropriate used vehicles one at a time. The latter is a very time-consuming process, and will require the expertise of someone very knowledgeable about used vehicle acquisition

Since the industry is so large, there are many sources of vehicles available, and many ways to access and utilize them. The challenge to businesses in need of fleet services, is to pick a fleet advisory or buying service that is fully capable of fulfilling the fleet needs of the enterprise.

Trust Auto has many years of experience in vehicle acquisition for retail, wholesale and fleet operations. We understand that finding the right fleet vehicles with the best value is a critical component to your business’ success helping you focus on what matters most – your business. We have a huge selection of high-quality, low-mileage vehicles.

What’s a “GOOD DEAL” for buying a car?

Elements of a Good Car Deal

Everyone wants a good deal on their next car. But what is a good deal? Beauty is in the eye of the beholder, and a good deal depends on what you are looking for. Could the lowest price be a good deal? Maybe not. Could the highest price be a good deal? Maybe yes. It is not a simple answer. There are many variables; many moving parts.

If the price is the same, does that mean the cars are the same? Of course not. Every used car and truck is unique. There are no two that are exactly alike. The mileage, the optional equipment, the wear and tear history (Who drove it?), and most important- the overall condition of the vehicle all have something to say about what really makes a “good deal”.

CarGurus Deal Rating

CarGurus defines a good deal as a price that is a little below the National Auto Dealers Association (NADA) average retail price for a vehicle. This is great to consider as a starting point when searching for a car, but you’ll also want to consider the overall condition, or how the vehicle was driven. Is the vehicle on its’ third set of tires and fourth set of brake linings? Was it driven by a sweet old lady or a frustrated 20-year old bruiser?

The more you know about your next vehicle, the more confidence you can have about a buying decision. That is why Trust Auto gives you a 360 degree overview of each vehicle. You will see the Maryland State Inspection Report, one of the most comprehensive in the US, and far better than Virginia or Pennsylvania. You will see the Carfax report of any accidents, damage and all reported repair orders. You will see pricing of comparable vehicles from the most respected sources in the US – Kelley Blue Book, NADA, Edmunds and others.

At Trust Auto, we want to make your purchase decision painless, with no regrets and no second-guessing. You can purchase with the confidence of knowing that you did everything necessary to make a good buying decision.