If you are considering buying a new car, you might also be looking into trading in your current vehicle. While some vehicle owners believe private sales are better because it will result in a better sale price, trading in a vehicle offers far less hassle and less risk of costly errors. According to Consumer Reports, most people prefer to trade their vehicle in because it is easier than selling it themselves. All the paperwork, signing and financing is done in one place.

If you want to get great value out of your car without the drawn-out process of selling it yourself, it just makes sense to trade in your vehicle. Here are some ways to make the most out of your trade in.

Don’t Trade in Your Car and Shop for a New Car at the Same Time

Trading in your car is a great option for those shopping for a new or even used car, but you want to start with knowing your trade in value before going out to explore your options on a purchase.

Approach the trade in process the same way you would approach buying a new car; get several quotes before making a decision. Going to a dealership and asking for a trade in valuation well before telling them you are interested in purchasing a vehicle will take the focus off the new car purchase and emphasize the value of what you already have. It also allows you to compare estimates with other sources and negotiate with dealerships using those other offers as leverage.

Do Trade in Value Research

Do some research online as if you are looking to buy the exact model that you are trading in. What are they selling for currently? And what are the conditions of those models on the market? Knowing this information can help you compare the trade in estimates you’re receiving.

Gather all the information that you will need to calculate your own trade in vehicle’s value based on the:

• Make
• Model
• Year
• Mileage

Kelly Blue Book, AutoTrader, and Edmunds provide tools that allow you to calculate the value of your car so that you can compare it with a list of similar vehicles.

This step is crucial in determining what’s a fair offer from dealers and help you negotiate your trade in value. While the trade-in offers you receive wont exactly match the full sale price you estimate, it can help you understand where you stand in a pre-owned purchase. The amount that you trade your vehicle in for is kind of like a discount on the vehicle you eventually purchase.

Does Your Trade-in Vehicle Need a Tune up and a Shine?

If the vehicle needs work done, it will always be valued less. Big ticket items like new brakes, tires or transmission issues can cost you. Even minor inconveniences might have dealers raising eyebrows. If you did not bring the car to them in good condition they might wonder, “What else could be wrong with it?”

This is a concern for dealers when they are determining trade-in valuation. Their goal is to make a profit, and they can do that best when they can resell a traded-in vehicle that has less than 100,000 miles. If your vehicle has over 100,000 miles, they are likely to auction it, in which case you could be getting less for trade in value.

That is why it is also important to bring proof of any servicing and maintenance that you have had done on the vehicle over the years, including things like oil changes and tire rotations. A record of good care will help bolster your trade in’s valuation, regardless of mileage.

Make sure the vehicle looks presentable. Cleanliness helps dealers clearly see the value of the vehicle. Don’t put more money into the vehicle with upgrades; just make sure it is cleaned and vacuumed so it looks its best when you start shopping it around.

Ready to Trade Your Car In?

Take your vehicle into a dealership that you can trust. Easterns Automotive is always looking for trade in vehicles or pre-owned vehicles to buy, and we are happy to help our customers trade, shop and purchase a vehicle their way. We have eight locations serving Washington, DC, Baltimore and the greater Maryland and Virginia areas.

If you are ready to trade your vehicle in, bring it to one of our dealership locations and we will give you the fairest price possible. We wouldn’t be surprised if you also came across the perfect vehicle for your new purchase as well.

If you have questions about the value of your current car, truck or SUV, call us at (888) 650-4775.

The transition from gas powered vehicles to electric and hybrid vehicles is sweeping the nation. Although the change is good for environmental sustainability, it’s less clear whether EV or hybrid vehicle purchases are a good financial investment for vehicle owners. There is much debate surrounding whether an electric vehicle is a good purchase in comparison to a traditional gas-powered vehicle, as well as uncertainty surrounding future resale value of EV and hybrid vehicles.

Advancement in Batteries Makes New Electric Battery Models More Affordable

As it stands, current owners of older model electric vehicle are in a sticky situation. As improvements in battery technology in EVs and hybrids are being made, the price of the batteries are dropping. Since batteries in these vehicles make up more than 50 percent of the vehicle’s value, the overall price of electric-powered cars is coming down.

With the advancement of EV batteries in new and future models also comes a drop in resale value in older EV models. The lower quality and life expectancy of batteries in older models of electric vehicles make them harder to sell. In fact, the average resale value of these older EVs and hybrids is less than 40 percent of the original value.

Gas Powered Vehicles Hold Their Value Over Electric and Hybrid Models

In comparison, traditional gas-powered vehicles currently have a better resale value of 50 to 60 percent of their original valuation. Evidently, people still prefer gas-powered vehicles over EV. Some reasons might include concerns over charging stations, convenience, battery life and style.

Another factor affecting EV popularity are changes in consumer preferences. SUVs and trucks have significantly risen in desirability over sedans and cars, and there are still few options for EV and hybrid SUVs and trucks.

Hope for Hybrids and Electric Vehicles

The news is certainly not all bad for electric vehicles. With more companies committing to transitioning entirely to EV models in the not-so-distant future, the used EV market is sure to improve over time. Plus, more hybrid and electric vehicles are being designed to better appeal to current auto shoppers.

There are some battery-powered SUVs coming on the market to compete with the highly sought-after gas-powered models. With the improved battery life, EV Crossover models like the Tesla Model X are expected to keep their resale value.

Tesla is ahead of the game in resale value and depreciation. Other brands like Jaguar, GMC and Volvo are attempting to compete in the EV market in the future with all EV or hybrid models within the next couple decades. Problems and concerns over charging stations and battery life are sure to lessen as technology and infrastructure catches up to the proliferation of EVs.

The government’s added incentivizes like rebates and tax credits for the purchase of electric vehicles and charging equipment could persuade people to switch from gas powered vehicles to electric and hybrid. This uptick in demand may drive up the value of these vehicles.

When Is the Best Time to Sell My Car?

Regardless of whether you have an electric vehicle or a gas-powered car, now is a good time to sell. The prices of preowned vehicles are at historic highs after the pandemic, which is great news for people who want to sell their cars.

According to Edmunds, the shortage is expected to last until 2023. With the scarcity of even EVs and hybrids, you are likely to get a great price for your vehicle. If you are concerned about the value of your EV or hybrid decreasing, now is the time to sell!

Gas-powered vehicles will not be phased out for a long time. As long as the traditional car, truck and SUV industry continues to make a profit, they are going to keep pumping out new gas-fueled vehicles. Ultimately, the resale market for both EVs and conventional vehicles is up to auto consumers collectively.

If you are looking to sell your car, Easterns Automotive can help. We will buy your car and give you an offer within three business hours, whether you have a battery-powered or gas-powered car.

All you have to do is visit our website and complete a submission form that takes just five to seven minutes. Sell your vehicle today and purchase a high-quality preowned car, truck or SUV. If you have any questions about the resale value of your EV or hybrid, call us at (888) 650-4775.

Buying anything with cash is cheaper unless you’re getting some type of zero-APR financing and you pay off the loan before interest kicks in. However, interest accrual is rarely the only concern people who are financing a purchase have when making their decision.

Buying a vehicle is a financial commitment that you need to be prepared for, whether you pay cash or finance the purchase. Saving money on big expenditures is a goal for most people, but how you go about doing it really depends on your circumstances.

How Paying for a Car in Cash Can Save You Money

When you pay for a car out of pocket you avoid a potentially large sum of interest that accrues when you take out an auto loan. Depending on your loan’s APR, you could end up paying hundreds of dollars more in interest each month.

With a high interest rate and long term, they could end up paying thousands of dollars more than what the vehicle is worth. If you pay cash, you are agreeing to the sticker or negotiated price. No more and no less.

New cars depreciate very quickly. Most cars lose 20 percent of their value the first year, but your loan amount won’t change to reflect that valuation. You will end up paying far more than what your car is worth on financed new car purchases.

Not only might the value of the vehicle be far below the principal of your loan after just a couple of years, but you’ll also be accruing interest on that initial price – not it’s depreciated valuation. Many people who finance new car purchases end up upside down on their loan, especially if it is a long-term loan.

If you pay cash, you get the car for what it is worth.

Financing used vehicles is a little different. There’s no steep initial drop off in valuation after the first year of ownership. The more gradual depreciation of a reliable preowned vehicle negates a lot of those problems inherent with financing a new vehicle.

While paying cash can save you money in the long run, it is also a preferred form of transaction when it comes to the seller in most cases, especially private owners.

Buying a vehicle off a private owner with financing can be difficult. It is harder to get approved, and many lenders will not lend to you for a private vehicle purchase. Cash is king ultimately, and sellers often go down on the price of the vehicle if you do pay in cash – even dealers. It saves everyone time and money.

When Financing a Vehicle Is Better

Transportation is an investment that makes sense for a lot of people. It might let you get to your job and make more money than you would if you had not owned a vehicle, in which case you end up making more thanks to the car than you ultimately pay in interest or cash.

Car shoppers need to make a value judgement on what their transportation is worth and whether their finances can handle paying cash. In many cases, draining your savings just to pay one lump sum of cash is not the best decision. It may be more financially sound to use a part of your savings for a down payment and then paying off the remainder over time.

The more that you put down the lower you can get the loan term or monthly payment. Then you will accrue less interest over the life of the loan and still have money left in your pocket.

Financing is also a better option if you need to build credit. Making regular payments on a vehicle is a great way to build credit. The only downside to this is that you may have a higher interest rate at first, but with consistent payments and a little time you can refinance your vehicle and get a lower rate. In the long run it makes you more eligible for other large purchases.

Financing your vehicle might also come with some perks you wouldn’t get by paying cash. Depending on who your lender is, you might qualify for better warranties, dealership maintenance and a buyback guarantee. If you purchase a car in cash and it breaks down the next week, your ability to return it could be questionable.

It Is Okay to Finance a Car in Washington, DC or Baltimore

You should always weigh your options before committing to an auto purchase, whether it’s with cash or an auto loan.

Easterns Automotive works with every customer to get them the financing that makes sense for their circumstances. As a trusted and experienced dealership in the Washington, DC and Baltimore areas, we are excited to get you in a new vehicle that you can feel good about.

You don’t have to drain your savings to be in a new preowned vehicle today. To learn more about our auto loan options call us at 888-650-4775 or visit us online to get pre-approved.