Besides buying a home, purchasing a new vehicle is, arguably, the second-most expensive purchase that the average person makes in their life. Since that’s the case, it’s only natural for you to want to get the best price for the next car you’re looking to buy. In case you don’t know, one of the best ways to get the best price is to trade in your old car for the new one.
Yes, part-exchanging your car will enable you to combine two processes in one; the first process is to sell your old car and the second process is buying your new car. With part exchange, your local dealership will check your old vehicle and offer you a price for it. Interestingly, the figure from the old car will contribute towards the purchase of the new vehicle.
It’s more common to see people trade in one car to get a new one. However, most local dealerships will surely allow you to trade in two old cars to get a new model. Before going ahead to purchase the new vehicle, ensure to research and know the worth of your cars for the best trade-in value.
When it comes to trading in two vehicles for a new one, here are some of the frequently asked questions by buyers; is it a good idea to trade in two cars for one? What is the best way to trade in 2 cars for 1? Is it possible to trade in two cars with negative equity? In the rest of this post, you’ll learn everything about how to trade in two cars for a new one, including the answers to the burning questions above.
Is It a Good Idea to Trade in Two Cars for One?
The best time to answer this question is when we are both clear about what trading two cars for one means. So, I’ll start by asking this question; what is a part exchange and what exactly does it include?
Part exchange, as previously stated, is a process of trading in your old car for a new one. It combines two processes; you’ll first get a value for your old vehicle and after that, you’ll get to transfer whatever you get to the next one.
In this case, a couple of things are involved. First, your local dealership, after checking the old car you’re looking to trade in, will give you a price. If you’re the type that understands the value of your old car, you can always negotiate for the best price. The figure from the old car can either cover all or part of the cost of the new car’s down payment.
Now, let’s go back to the burning question of whether or not it’s a good idea to trade in two cars for one?
The simple and direct answer to the question is yes; trading in your two old cars for one is a good idea if you’re sure you don’t need the cars anymore. Since you’re trading in two cars, you’ll be able to increase the amount of money needed for the new vehicle’s down payment.
However, you need to understand that trading in your two cars for one will only be worthwhile if you understand the values of the old vehicles and get the best prices for them.
What Is the Best Way to Trade in Two Cars for One?
It’s pretty simple; the best way is one that lets you get the best value for your old cars. And there’s no way that can be possible if you don’t know the value of your old cars.
As earlier mentioned, getting the best values for your two cars will require thorough research to understand their worth. After that, you can then visit your favorite dealership to trade in the two cars for the new one. Since that’s the case, my advice for you is to follow the simple tips below to get the best price:
- Before reaching out to your local dealership, ensure you thoroughly research and understand the current values of the cars you’re looking to trade-in. Use different sources for better results.
- Next, allow the dealership to check the vehicles and give you their prices.
- Compare the prices with your researched figures and see if they are close enough. If yes, go on with the part exchange for the new car.
- If not, try and negotiate the prices of the cars individually and ensure you get the best price possible. However, keep in mind that it’s unlikely that you’ll get the exact price that you researched for the two vehicles.
Can You Trade in Two Cars with Negative Equity?
Another frequently asked question when it comes to trade in two cars for one has a lot to do with negative equity. It says; is it possible to trade in two cars with negative equity?
For the sake of those who don’t know, negative equity is what happens when you owe more money on the cars than its trade-in value. In this case, I’m sure you’ll agree with me that it’ll be pretty challenging to have the vehicles traded-in
Negative equity is otherwise known as being upside-down on your car loan. That said, for you to trade in your two cars with negative equity, you’ll certainly need to understand the difference between the loan balance and the trade-in value.
By knowing the difference, you only have three options. The first one is to pay it from your pocket with cash. Secondly, you can pay the difference between the loan balance and the trade-in value with another loan. The last option is to roll the difference into a new car loan – that’s if you have good credit.
Bottom line: I wouldn’t advise you to trade in your two cars with negative equity for a new one. The best option is to keep the cars and make an effort to pay down the loan.
