by Rodney Harris

Created on: February 11, 2011   Last Updated: February 12, 2011

Eventually everyone gets “new car fever” and even though it can be painfully obvious that waiting might be the best option, many people can’t resist the urge. One of the best things a person wanting to buy a new car can have going for them is a good reliable car to trade in on the new one.

A trade-in can dramatically reduce the cost of buying a new vehicle if it is completely paid off in full. By not having a lien on the vehicle the actual price of what it is worth can be negotiated for and received in many cases.

Many times a person shopping for a new car may have a trade-in vehicle that has a very high resale value or is a popular and sought after vehicle. This reason alone can drastically increase the car’s trade-in value. Sometimes the dealer may pay even more than the book allows for the car on the assumption he will be able to sell it quickly. Also in many cases add-ons or extra items can be negotiated for with the very popular trade-in.

Most of the time when buying a new car the dealer and/or the finance company will want a substantial down payment from the buyer of the car. With a good reliable trade-in this usually is not the case. The trade-in car will more times than not stand good for any down payment required from the bank or dealer.

Many times when a new car is purchased it will be the responsibility of the new car buyer to pay for the title transfer, license fees and taxes. This can be a large amount of money to pay at one time and most people don’t want to put this in the financed amount and pay interest on it. With a good trade-in vehicle this amount can be taken care of along with the down payment.

Probably one of the least thought of and surely the least used ways to save money on a new car with a trade-in is to just not trade it in. While it is more convenient to trade the old car in at the dealership it can be a much more lucrative matter to sell it yourself. Remember, usually you are not going to get retail price for your trade-in. The car dealer is going to give you less than he can sell it for because he has to turn a profit. If you can sell the car and get anything close to retail then it will save you even more money in the long run.

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