Best way (practically) to manage sell a trade-in car

Deleted_User wrote: »

A dealer will make you an offer at the time. It will be fairly low. They won't give you a 'letter of intent' beforehand.

The only real way to get an estimate now, although again it will be very low, is through a car buying website.

You sound as if you may be American from your use of 'auto-loan', in which case you might be better getting advice more locally.

I'm from the UK actually haha. I've been reading a lot about the process and a lot of it seems to be American videos/ articles, so I try not take it as gospel as I'm sure it's different here in some ways.

Kinda hard then to go in with the money already in the bank and then make up the difference perfectly with a trade-in, seeing as I won't know how much the dealer is going to lowball me on my trade-in. I guess I just need my own backup cash to make up the difference if I get stuck in a pickle.

venison wrote: »

The best way to get the best deal will be to sell your car privately, then find the car you want and then borrow the money, if you want to be certain of getting the loan then sell your car then get the loan then shop around you should get a better deal paying cash with no PX.

While this is true and the best way to do it, the thing stopping me doing it that way is, how am I going to get around if i have sold my car!! It puts me in a scenario where I feel I am more desperate to get something and may settle for a worse deal as I don't have a car.

I need my car daily to get to work, so I suppose I could take a week off and get my partner to drive me around. Just makes me feel slightly vulnerable doing it this way, though ideally I would go this route if I can make it work.

DrEskimo wrote: »

It's pretty pointless trying to work out figures now, when you are possibly 6-months away from making a change. The value of your car and the value of the car you are buying are going to change a fair bit.

When you do decide to change, use dealers (main and local independents) along with online valuation companies to get as many trade in values as possible. This will vary so get a lot. Use this and other listings online to then decide how much more you could get for a private sale. It may not be worth it if you can get a decent trade in for it (typically, they will be around £2-1k less though).

Just be careful about using the car as a part-ex on the car you want to buy, as they will likely adjust the discount on the new car to offer higher part-ex value.

You're better off using a unsecured personal loan from your bank or high street shop. Specific car loans tend to be very expensive.

I am not looking at specific figures here. I am aware my car will be less in 6 months. I am looking at the method of executing this. An unsecured personal loan may be better, though it depends on what I am offered at the time, as the auto loan may be better.

yksi wrote: »

You've clearly already decided to buy on finance - this isn't a fault and is your right, but I'm sure many in this thread are wondering if it makes the most financial sense. Quite a lot of people go down the finance route just by assuming it's the "normal" way to buy a car, so make sure you've actually questioned whether it's the smartest way.

I didn't even consider renting a car, good thinking batman :TThat makes it easier.

It is good to be skeptical about the finance route. Though I have mulled it over for the last year or so, so it's not something I'm doing on a whim. I know all of the implications of using finance opposed to buying the car outright, and how yes, ultimately I am spending more doing it this route. Also I know how the dealer tries to get you using their 4 square method etc...Though having the full amount up front should help this.

I can afford the finance and still save £1k~ a month after paying for my rent and discrentionary spendings, whereby I allow myself £300 a month to spend on "bits and bobs" and replacing things. while having outgoings of £600~ a month on a car (fuel, repairs and maintenance, monthly cost).

The real reason for my finance? I'm impatient and I'm wanting to get something fun while I'm young :rotfl:Though I'm not being impatient to the point where I end up in a 3-4 year commitment where I'm in the financial pits with ridiculous interest rates. If I can't get a reasonable deal I won't get the loan and probably just save up to buy the car off up front.

I also assumed it would help build my "credit score" a bit, which might help out when I go for a mortgage in 4-5 years.
Good to have an asset behind me as well so they can see that as collateral, or something.