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you are currently driving a vehicle that is more than 10 years of age, you maybe in the market of a new or pre-owned vehicle. It is true when you are trying to sell your older vehicle privately you will get more value for it versus trading it in to a dealership. But depending on the brand, cosmetic and mechanical condition of your vehicle, it may just be easier to trade it in to a dealership. The reason behind this scenario is simple, for one it will not make much a difference in value in the market place whether it is whole sale or retail. You may not want the hassle of buyers knocking on your door, and the potential problems you may face in case the vehicle has a break down. In Canada when you are trading in a vehicle towards a newer one [link widoczny dla zalogowanych], the government offers you a tax benefit on your trade in value which is currently at 13%. Lets say your 2000 Toyota Camry will fetch $3000 in the market place, but the dealers are willing to offer you $1500 as a trade in value. With the 13% tax savings applied, your $1500 trade in value becomes $1695.
The key concept behind trading in an older vehicle is the repair bills [link widoczny dla zalogowanych], many customers think if they repair the vehicle they should get more value in return. Unfortunately the truth of the fact is you are only spending money to bring your vehicle into its original operating condition without any added value. Therefore the $3000 you just spend on fixing your 2000 Toyota Camry will not bring you additional $3000 in trade in value. Its best to trade in the vehicle in its As is condition and save your money. Another mistake people often make is with aftermarket add-ons, equipments such as aftermarket stereo system [link widoczny dla zalogowanych] sub woofer, skirt package or a crazy paint job will only lower the trade in value. The truth about these highly customized add-ons is they only appeal to a very limited market segment and it is difficult for the dealership to find another customer who likes exactly what you have done to the vehicle.
Things to remember from this article is when you are planning to trade in your vehicle dont spend your hard earned money on any unnecessary upgrades or repairs.