DO I TRADE IT IN OR DO I KEEP IT?
Most of us have faced this question at some point in our lives. If the pennies are tight do we just ride it out and wait for the decision to be forced on us or do we trade it in now? What’s the smart option?
The first thing you need to establish is, what’s driving you to consider a new car; Is it because your car is breaking down? Is it because it doesn’t service your needs (family grown out of it, or need it for work) or is it simply because you want something better?
You need to establish how far gone your car is and if it’s worth anything to a buyer.
Assess your car, or get an opinion from a motor minded friend, on what the value of the car is at this point in this time? OR It’s not hard these days to do a quick search online to see what other vehicles like yours are priced. You can look up car dealerships, carsales websites or the most accurate source would be redbook.com.au. This should give you an idea of what it would be worth.
Next, we need to establish the difference in market value, compared to the condition of the car.
Is it damaged or driveable, Or does it pack a heap of extra features?
Obviously, if you’re thinking about trading in or selling your car you need to make sure it’s worth the money. Compare other priced cars and then take into consideration any damage or features that will increase or lower the value of the car. Keep in mind, the condition of your car will seriously affect how dealerships will value the car. Sometimes they will knock thousands off the price for scratches and dents etc. If it’s a cheap and easy repair, then best to get it fixed before speaking to a dealer.
If there is a big problem, you need to assess whether it will be worth the money to get it fixed or simply trade in at a lower value. Sometimes the price it costs to fix the vehicle may be greater than the lower price offered by the dealer and in that instance, it will be better to simply trade. It’s best to speak to a mechanic or someone who knows something about cars to get their opinion before speaking to a car dealer.
DO I KEEP IT?
Again, is it in good condition and driveable? If there’s no problem with it, then it makes perfect sense to keep it. Obviously, you won’t need to outlay money for a purchase or make monthly repayments on a loan, it can give you more time to start saving etc. However, you should expect to outlay money for upkeep and any issues that may arise from older cars wear and tear. Learn more about your car and learn how to fix any issues yourself if they arise.
But, if there is nothing wrong with It, then what put the thought of a new vehicle in your head? More than likely, once the thought is in your mind, you will start to notice that new car you desire more and more and it makes it pretty hard to get it out of your head.
DO I TRADE IT IN?
If you have outgrown the car and you need something different for work or family then the obvious reason is yes. But If the car is in a semi decent condition and you just can’t get the thought of that new car out of your head, then maybe a trade in is still the best way to go. The better your car is, the less you will need to pay for the new vehicle. If you aren’t in a hurry, the best thing to do would be to sell the vehicle privately as you will almost certainly get a lot more for it.
But if you don’t wish to wait then talk to the dealer and see what they will offer you. Next, call us and we will give you an instant quote on the repayments and we will give you some advice on how to best structure the loan.
Remember to be sure you can afford the repayments and upgrade with your current budget. Be sure to always think of the long term, where you will be in 2 years and if you will still be able to afford it. If this is not an issue and it is well within your budget then make a move and test drive that new car.
But Remember, if you get pre-approved with us first, you will have a much easier time negotiating a better price with the dealer.
