When you finance a vehicle, you need to consider your car trade-in value. This will impact your monthly payment, reducing how much you must pay off in the long run. To explain more, the Keyes Lexus team explores how car trade-in values work and how they impact your payments.
Does a Car Trade-In Improve Monthly Payments?
If you’re trading in your vehicle when you buy a new one, the value of the car you’re trading in will be subtracted from the overall principal you’re paying. You can think of the trade-in value as an expansion of your down payment in addition to whatever other funds you’ve saved up. It can also help to cover your lease origination fees.
How Is My Car Trade-In Value Determined?
We use Kelley Blue Book as a starting point in determining your current car’s value. This service considers the age, mileage, repairs, and appearance of your vehicle, in addition to market conditions, to determine your car’s worth. When you bring your vehicle in for a trade-in, we’ll compare this value against the costs of repairs that we need to make in order to put the car up for sale.
What If My Vehicle Trade-In Value Is in the Negative?
If it will cost more to repair your vehicle than the car is currently worth, or if you’re underwater on an outstanding loan, your vehicle will have a negative value. However, our dealership may still be willing to accept your car. We can offer default deductibles if the vehicle is in solid condition.
Estimate Your Car Trade-In Value in Van Nuys, CA
Are you ready to buy a new Lexus model? You can estimate your car trade-in value on our website, then visit us for a final quote. Contact Keyes Lexus today to learn more.
