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COMMON CAR BUYING QUESTIONS
WHAT SHOULD I DO WITH MY OLD VEHICLE?
Chances are you're already driving something – maybe it's an old car on its last legs or maybe you want
something a little nicer to drive for your long commute. When buying a new car, you'll want to consider what you
will do with your current vehicle. Will you clean it up and sell it for cash to use toward your down payment on
another vehicle, or will you trade it in?
You'll want to consider what gives you the bigger bang for your buck. If the car is still in decent condition and
running well, you may be better off selling to an individual for cash and using the cash toward the down payment
on your next vehicle. However, you may get more "value" from your old car by trading it in for the newer vehicle.
For example, Kelley Blue Book
®
value for your car may be only $1,000.00, but the dealership may give you a
trade-in value of $3,000.00 toward a newer vehicle. If so, will your trade-in be enough to cover your entire down
payment, or will you need to supplement with some additional cash? Another advantage of trading in your vehicle
is that the value is deducted from the sales price and reduces the amount of TAVT, or sales tax, you must pay.
One other thing to consider before selling your vehicle is the time and effort it takes to sell your vehicle. Do you
have the time it will take to show the vehicle to prospective buyers and the skill to negotiate a fair price?
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