You know the saying: New year, new you. Once the calendar flips over, all your planned “big” life changes become reality. But how often do you accomplish your lofty New Year’s resolutions?
If you answered, “All the time,” maybe your failures have stemmed from a lack of a #treatyoself mantra. This year, your fail streak comes to an end because you’re following a new year-end motto: New year, new car.
Trading in your vehicle for a new car is easy, quick and requires so little effort that you’ll curse and shun the treadmill for all eternity. Here are the top 5 reasons to trade in your vehicle for a new one at a reputable auto or Honda dealership.
Advantages of Trading In a Vehicle
5. Simple Transaction with Fewer Hassles
When you opt to do a trade-and-upgrade, you’re leaving most of the heavy lifting to be done by your dealer. Your salesperson and the dealership’s financing team handles almost the entirety of the transaction for you. You show up, choose a new vehicle, negotiate a trade-in and purchase price, and then do make best John Hancock on dead trees—the end.
If you choose to sell privately, you’re in charge of all the paperwork, title changes and documentations. Some of this requires dealing with banks—the process to get a bill of sale can be lengthy and full of hoops through which you must leap—legal notarizing, and private financing. And you don’t have to worry about scammers.
4. Time Savings
Visiting a dealership with a trade-in usually results in a new car in your driveway within a few hours. Auto dealers deal with vehicle trade-ins multiple times a day, and their processes are much more refined than most private sellers’. This ensures you’re in and out of the dealership usually on the same day.
Not only do you have paperwork and title changes to deal with as a private seller, but you also must go through the steps to find a buyer, which can take months. That’s a lot of work and, ultimately, a lot of time to spend selling your car. If time is of the essence, a vehicle trade-in at the dealership is a quick, guaranteed transaction.
3. Temporary Registration
Sometimes the littlest perk is the biggest selling point. When you exchange your trade-in for a new car at the dealership, you’ll get a temporary plate that usually expires after 60 days. This allows you to drive legally as you wait for the title and get documents in order for your visit to the BMV/DMV.
If you decide to sell your vehicle and buy a new one privately, you’ll have to make that trip to the BMV/DMV pronto to avoid getting a ticket.
2. It’s Your Down Payment
In many situations, the trade-in value of your vehicle can be used as a down payment for your new car. Dealers will simply apply that trade-in amount to the negotiated price of your new vehicle. Should you decide to finance a new vehicle, you won’t need to take out as much money on a car loan, either.
So, if you wanted to exchange your old vehicle for the new 2020 Honda CR-V LX with Honda Sensing, you’d ask your dealer to put it toward the CR-V’s total purchase price. Applied alongside one of your dealership’s Honda finance offers, your trade-in helps you obtain a great deal on an award-winning SUV that has excellent cargo capacity, fuel economy and driver-assist features.
1. Sales Tax Advantages
Similar to a Health Savings Account or any pre-tax contribution you make, your trade-in may reduce the sales tax you’re required to pay on a new vehicle. Most states only charge sales tax on the difference in price between a vehicle trade-in and its replacement; this isn’t always the case, so please consult with your auto dealer’s financing team for details about the automotive tax requirements in your state.
When selling your home, you hire a realtor; the same can be said of selling your car to a dealership. In the end, trading in and exchanging your car for a new one is all about convenience. While you may get more money for your vehicle if you sell it privately—as you would for your home—the monetary difference is negligible when you factor in time, hassles and legwork.
If you’d like to get your vehicle trade-in value or request a quote on a new or used Honda in the Miami area, we’re here for you. Visit any of our South Florida Honda Dealers stores to see how you can get above-market value for your car, and don’t forget to browse our new Honda specials to save even more on that new CR-V. (Remember: Treat yourself.)
*MSRP excluding tax, license, registration, $1,095.00 destination charge and options. Dealers set own prices.