10 Things You Should Know Before Getting a Car Loan

A Private Sale May Net More than a Trade In

If you are interested in trading your old car in exchange for receiving the money off your new vehicle cost, you may want to think twice. Though trade-ins can take down the amount of your loan, it is likely that dealers will offer less for your vehicle than a private sale. It is an age old game that the dealer may say they are giving you a set amount for trade-in, but they end up recouping much of that in your new car price.

If you have time it can be much more cost effective if you try to sell your car privately and use the proceeds for a cash down payment. It might take a little longer this way but it could save you quite a bit of money in the long run if you have a larger down payment in cash, rather than a trade-in. For example you could get a $2,000 trade-in offer on your old car, but it might be worth $4,000. You could possibly sell the car for $3,000 in cash and end up paying $1,000 less on your loan if you sell it yourself rather than trade it in.