When you decide to buy a new car, you’ll need to figure out what you’re going to do with the old one. You’ll have two options: you can either sell your car or trade it in to the dealership where you’ll be purchasing the new car. Many people prefer trading in, as there are numerous benefits associated with doing so. Listed below are some of the benefits of trading in a used car in Newfoundland when you’re buying a new one:
1. Tax Benefits
Usually, when you buy a new car in Canada, you need to pay what’s known as Harmonized Sales Tax (HST), and this could be anywhere from 12% to 15%. However, if you buy a new car and trade in your old one, you get a tax break. Here’s how: if you buy a new car worth $20,000, and you trade in your existing car that’s valued at $10,000, you’ll only have to pay tax on the difference of $10,000. This is huge savings!
2. Trade-Ins Are Easy & Time-Saving
After you decide to sell your car by yourself, you will have to work on its interior and exterior to make it look appealing. Moreover, it will take a lot of time to find a buyer, negotiate, and close the sale. On the other hand, trade-ins make your new car purchase hassle-free, as you can go to the dealership in your old car, fill out some paperwork, and drive out in a new car after just a few hours.
3. Saves Money
If you decide to sell your car independently, you will have to have your car detailed. Your vehicle should look new and appealing in order to get a fair price. Detailing your car can cost you a lot of money. However, when you opt to trade in your car to a dealership, the dealer will take care of the detailing and reconditioning, which would be included in the trade-in value, thus saving you from having to pay for reconditioning up front.
4. No Need To Advertise Your Car
If you intend to buy your car privately, getting rid of an old vehicle can become a hassle. You will have to invest a lot of time and effort to create advertisements that will attract potential buyers. Moreover, some people who respond to your social media avertisements may never show up for an appointment. But if you choose to buy a new car from a dealership and trade in your old one, you’ll not have to go through all these hoops and hassles, and you can enjoy a quick purchase that’s a win-win solution.
If you’re planning to trade in your used car in Newfoundland and purchase your dream car, contact East Coast Financing. They even provide vehicle financing options to individuals who have bad credit.