Franklin Sussex Auto Mall Blog

When the time comes for you to upgrade to a newer and safer vehicle, what are you to do with all of the money that you still owe on your current car loan?

Ideally, you want to be at or near the point of having equity in your vehicle. This is defined as the point where the value of your vehicle is higher than the amount you still owe on it.

So how do you find out where this magical point of equity is?
If you review your current invoice from your auto loan bank, it should display the payoff amount somwhere on the bill. This amount needs to be equal to or less than your current vehicle value for you to have equity.

So what is the current value of my vehicle?
There are many tools available online, like Kelly Blue Book, that help you determine an approximate value of your vehicle. However, it should be noted that these figures can often be a bit too generous as they cannot fully account for everything that a much more thorough visual inspection would cover.

Many dealers on the East Coast, including Franklin Sussex Auto Mall, obtain estimate used car values using a service called Galves. This service provides average values for vehicles sold at used car auctions around the country, which is a more accurate representation of what your trade-in is worth.

Overall, the most accurate value you can get from your trade-in comes from visiting the dealership and having the Used Car Manager appraise the car. When the Used Car Manager can see and touch your vehicle, he or she can tell you exactly what you can expect to get for your trade.

So don’t be afraid to come down to the dealership to see what your current vehicle can be appraised for!