When you’re ready to get a new car, you may be considering trading in your current vehicle. Trading in your car can be a great way to put funds towards purchasing a new one, but it’s important to understand the process before you make a trade.
Here’s what you need to know about trading in your Subaru car.
Understanding How Car Trade-Ins Work
How do car trade-ins work?
You may consider trading your current vehicle when you’re ready to get a new car. Trading in your car can be a great way to put money towards purchasing a new one, but it’s important to understand the nuances of the process.
The first thing to understand is how trade-ins work. When you trade in your car, the dealership will appraise your vehicle and give you a trade-in value. This value will be applied to the purchase price of your new car. In most cases, you’ll need to have equity in your trade-in – that is, the trade-in value must be less than the outstanding loan balance on your current car.
If you don’t have equity in your trade-in, you may still be able to trade it in, but you may have to pay a “negative equity” fee. This is the difference between the loan balance and the car’s trade-in value.
It’s also important to understand that the trade-in value of your car is usually less than its private sale value. That’s because dealerships need to make a profit on the sale of your car, just like they would on any other used car they sell.
5 Processes to help you with Subaru vehicle trade-in
If you’re looking to trade in your Subaru vehicle, there are a few things you can do to get the best possible value. Here are 5 processes that can help:
1. Estimate the value of your car
This will give you a good idea of how much your car is worth and help you during the negotiation process.
2. Shop around for dealers
Get multiple offers from different dealers to ensure you’re getting the best possible price.
3. Ask for multiple offers from dealers
Don’t just take the first offer you receive. Ask for multiple offers so you can compare and choose the best one.
4. Make an appointment with a dealer
This will allow you to have a dedicated time to discuss your trade-in and negotiate the deal.
5. Negotiate the deal
Use your negotiating skills to get the best possible price for your trade-in – don’t settle.
Why you should trade in your Subaru car?
There are many advantages to trading in your Subaru car, including getting a fair price for your vehicle and avoiding the hassle of selling it privately. Here are some of the key benefits:
- You will receive a fair price for your vehicle: When you trade in your Subaru car, you can be confident that you will receive a fair and competitive price. This is because dealerships are experienced in valuing vehicles and will consider factors such as its make, model, age and condition.
- You avoid the hassle of selling privately: Selling a car privately can be time-consuming and stressful. From advertising your vehicle to arranging test drives and dealing with ‘tyre-kickers’, it can be overwhelming. When you trade in your car, the dealership will take care of all of this for you.
- You can use the money towards your next car: The money you receive from trading-in your Subaru car can be put towards purchasing your next vehicle. This is a great way to upgrade to a newer model or a different type of car altogether.
- It’s a seamless and convenient process: Trading in your car at a dealership is generally a very straightforward and convenient process. In most cases, it can all be done in one visit, and you won’t have to worry about any paperwork or administrative tasks.
Subaru trade-in steps – Frequently asked questions
How does a Subaru trade-in work when you still owe?
If you’re considering trading in your Subaru for a new model, it’s important to understand how the process works if you still owe money on your current vehicle.
When you trade in a car, the dealership will give you a value for the vehicle based on its condition, mileage, and other factors. If the trade-in value is less than what you owe on the car, you’ll need to pay the difference to complete the transaction.
For example, let’s say you currently have a loan balance of R150 000 on your Subaru Outback. The dealership offers you a trade-in value of R120,000 for the car. In this case, you would need to pay the R30 000 difference to the dealership to trade in your Outback.
If you don’t have the cash available to cover the difference, you may be able to roll it into your new loan. This means that you would finance the remaining balance of your old loan plus any additional amount needed for your new vehicle.
What happens if your Subaru trade-in is worth more than the car you are buying?
If you’re looking to trade in your Subaru for a new model, you may wonder what will happen if your trade-in is worth more than the car you want. In this case, you’ll have a few options.
You can either put the difference towards the purchase price of the new car, or you can choose to receive the difference in cash. If you choose to put the difference towards the purchase price of the new car, you may be able to negotiate a lower interest rate on your loan.
If you choose to receive the difference in cash, you can use it however you’d like. You could use it as a down payment on another vehicle, save it, or invest it.
No matter what you decide to do with the difference, it’s important to consult with your trade-in dealer to ensure that you’re getting the best possible value for your trade-in. They will be able to help you evaluate your options and make the best decision for your needs.
If you want to know a little more about how the Subaru trade-up and trade-in programmes work, contact us at +27 11 608 0116 or send an email to info@subaru.co.za.
