Trading In Your Car

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vehicle trade-in

If you’re shopping for a used vehicle, it’s likely because your old one is headed down the path of never-ending repairs.  When a car costs more to fix than it’s worth, or its age has rendered it repairable month after month, you start to feel the itch to look for something new, or at least new-to-you.

Before you send your car to the scrapyard or put it up for private sale, it’s a good idea to consider trading it in as a part of your new purchase.  From taxes to down payments, there are plenty of sound reasons to make a trade.  What’s yours?

I don’t have a down payment.

If your car gave out on you suddenly, you might not have had the time to save up a down payment for a new-to-you one.  Even when you’re buying used, you’re rarely going to get away with financing without putting anything down.  When you trade in your vehicle, you can  use the trade-in’s value as your down payment.  This not only allows you to get your foot in the door; it also means you’ll be paying off less over the term of your loan, saving you valuable money you’d otherwise be spending on interest.

I want to save on taxes.

In the state of Pennsylvania, trading in your car on your used vehicle purchase actually saves you money on taxes.  When you trade in your car, you’re reducing the vehicle sale price, so the bigger the trade-in value, the less you’ll be paying to the state.  Let’s say…{continue reading this piece on Brown Daub Dodge Chrysler Jeep Ram}

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6 thoughts on “Trading In Your Car

  1. Petrish @ Debt Free Martini

    Wow making money via your taxes when trading your car in a state is a really great perk. For me I take good care of my cars and when it’s time to upgrade I actually give my cars away to a family who needs it. I have been doing this for years. I started doing this when I realized that I was being offered peanuts for the car and just giving the car away actually makes the car more valuable to someone else.

    Reply
  2. Jason @ Islands of Investing

    We’re looking at doing this very soon, which is only a small consolation for having to buy a new car! (We need a bigger one for the family, but not something I’m terribly excited to spend money on!). I think it’s a great, convenient option, and definitely better than hanging on to a second car and all the associated costs!

    Reply
    1. Femme @ femmefrugality

      I hear you on that. We’re going to try road tripping in a sedan this summer… Space would be nice and we might have to cave and take the bigger vehicle! Those darn kids requiring things like transport…. :p

      Reply

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