When you have a clunker, there is always this question that seems to arise over you: should I trade it in or just throw it away? We cover the pros and cons of both options, and how your credit situation could change the direction you take.
Is the old car paid for?
Determining your next step will start with knowing if you still owe money on that old car. If you own the vehicle, it can be as easy to get rid of this clutter as it is to take the car and title to a junkyard and collect the money. Owning a free and free vehicle also makes the trade-in process easier.
If you still owe on that car, you need to worry about getting an offer large enough to cover your loan balance if you don’t already have the money to pay it off. To determine how much you need, you can look at your loan balance or request a repayment amount from your lender. Once you have that you can start making calls to see where you can get the best deal.
Pros and cons of throwing away your car
If your vehicle is reimbursed and you just want to get rid of it, then by taking your clunker at a junkyard might be the best option for you. It is also a good option for people who have a car that cannot be driven. Many people end up scratching their vehicle when the cost of repairing it exceeds its value.
Many junkyards and junkyards take cars apart and sell the parts that work, so you’re more likely to get an offer from a junkyard than a dealership if your vehicle isn’t running at all. However, the amount you can get varies a lot depending on the current scrapyard inventory, the suitability of your car, and its overall condition.
- Fast process
- Landfills are easy to find in most areas
- Negotiations are common
- They could come and collect your vehicle if it is not moving
- Offer likely to be lower than the actual value of the car
- You may need to pay for them to pick it up
- You need a ride home
- If they can’t retrieve the vehicle, you have to pay to tow it
Before heading to the nearest junkyard, be sure to call several others in your area. This way you can get a feel for the scrap value of your car and it can also give you some bargaining power. If your vehicle doesn’t drive, you should also ask the yard if they can pick it up and what the cost is – make a comparator for that too!
Pros and cons of trading your car
Swapping your car is a story as old as time – it’s a very common way to improve your commute. With the old and in the new!
If your old vehicle is still running, chances are the dealership will make at least one offer to you. This offer can be applied to the sale price of your next car to meet the down payment requirement. Swaps can be very helpful for those with bad credit, as subprime auto lenders usually require a down payment.
- Generally fast process
- Dealer can offer more than scrap
- Usually room for some negotiation
- Offer can be applied to your next vehicle
- Dealers are unlikely to take your car
- Cannot make an offer if the vehicle is not running
- The supply will probably be less than if you were to sell your car yourself
- The offer may not be enough to cover your previous loan (if you still owe)
If you want get an idea of how much you are likely to get from a dealership, you can check out the vehicle review websites. Keep in mind that these sites can only give estimates and the dealer is the one who decides the real value of your trade-in.
What do you need next?
When deciding what to do with your old car, it’s important to know what you need next.
Was that old vehicle your only one and do you need another? How is your credit rating? Looking to finance or pay cash for your next car? Answering these questions and figuring out what you need next can help you decide which direction you want to go.
If you need another vehicle, trading it in with a dealer is probably a good next step. Swaps can reduce the amount you need to fund since they can be used as a down payment.
Many bad credit auto lenders require their borrowers to have at least $ 1,000 or 10% of the sale price of their next car in cash or trade-in value.
If your old vehicle no longer works, it’s depreciated and the cost of repairing it exceeds its overall value, then scratching it is probably a good idea. At the very least, some of the money you might get from a junkyard could help you save a down payment for your next car.
Find a Dealer With Bad Credit Lenders
While almost all dealers can take a trade-in, not all dealers have the resources to work with borrowers with bad credit. Instead of driving around town hoping to meet a dealership for your credit, start here with us at Auto Express Credit.
We have cultivated a nationwide network of dealers who are registered with subprime lenders. These lenders are not limited to your credit score and are equipped to work with borrowers in all types of unique credit situations. To get started and be matched with a dealer in your area, complete our free form auto loan application form.