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Auto Trade-in FAQ

automobile trade in, Indy Auto Man Indianapolis

Everything You Want to Know About Auto Trade-in

If you decided to trade in your car in Indianapolis, you probably have doubts about the conditions and the auto dealer to choose. The most difficult choice is when you have two roughly equivalent options in front – a multibrand used car dealership or an authorized one.

We have prepared this trade-in FAQ to help you sort things out and make the right choice.

How Does an Auto Trade-in Work?

car trade-in

In simple words, automobile trade in is an exchange with a surcharge. Having decided to use such a program when purchasing a vehicle, you can come to a dealership in an old car, and after a few hours leave it, sitting behind the wheel of a new one.

The procedure, in this case, is as follows:

  • choose a car dealer and clarify the terms of the program;
  • provide the old car to the experts of the dealership for diagnostics;
  • bargain and agree to the terms, or look for another auto dealer;
  • decide on a new car;
  • check and sign the sales contract;
  • leave on a new vehicle.

When buying with your own funds, you only have to pay the difference in cost. If you need a car loan, the old car will go towards the down payment.

The program applies to the purchase of not only a new car but also a used one. In fact, this is the usual procedure for buying and selling.

Will a Dealership Take My Car as a Trade-in?

Conditions for trade-in service when buying a new car at an authorized dealership are not so simple as they seem.

  • Be prepared for the car dealership’s price to be lower than the market average. Read how to get a KBB trade-in value.
  • The loss in money when evaluating your car can be paid off with a discount on a new vehicle, which the dealer will offer you as a bonus for participating in the program. But there is a pitfall here – a good discount is provided only for specific models, and sometimes only for the high trims.
  • To receive such a trade in service, the buyer must meet certain criteria that differ from dealer to dealer. For example, Mazda dealerships, in addition to cars of their own brand, redeem premium-class cars no older than 5 years old. Some other authorized dealers accept cars up to 10 years old. Others don’t accept cars from certain manufacturers. And some official dealerships do not like the particular models.

When you come to a used car dealership in Indianapolis, there are no such restrictions. At Indy Auto Man, Indianapolis, we are ready to buy your car of any brand at the market price.

How the Car Is Assessed

a sales person with a customer performing external inspection
Filing document. Shot of a handsome salesman filing documents with his happy clients at the dealership

When you take your car for an auto trade program, the sales consultant will perform an external inspection of the car to assess:

  • the body condition;
  • glass, headlights, and lanterns;
  • correspondence of unit numbers to the data in the vehicle registration certificate;
  • mileage;
  • the state of the controls and the interior;
  • completeness.

If no serious complaints are found, then the car will be sent for inspection to auto mechanics, where they will check in detail the serviceability of the equipment and units.

What Paperwork Is Needed for a Car Trade In?

The sales consultant will study the documents for the vehicle and the legality of your ownership. You will be asked to provide:

  • personal identity document (driver's license);
  • vehicle passport;
  • certificate of registration.

All the rest paperwork is performed by the dealership. 

Do Dealers Run CARFAX on Trade in?

At Indy Auto Man, we always rely on CARFAX history report to protect our future customers and used-car inventory. Based on the vehicle history, the dealer will check:

  • The number of owners;
  • Car accidents;
  • Encumbrance (whether the vehicle is pledged by the bank or under legal action);
  • Any serious replacements (engine, gearbox).

Can You Trade in a Vehicle You Still Owe Money on?

Yes, you can. The auto dealer will pay the loan balance and obtain the title from your lender. If your equity is positive, you can use it as a down payment towards your purchase or new lease. Try our car loan calculator.

What Happens When You Trade in Your Car for a Cheaper One?

If your old car value is higher than that of a new one, you will get a check for the difference.

Can I Return a Car I Just Bought under a Trade in Program?

The conditions vary depending on the dealer. When you buy a used car at Indy Auto Man, you have 7 days and/or 700 miles for a guaranteed exchange if something goes wrong with the vehicle you bought. 

If you still have any doubts about auto trade-in, you are always welcome at our dealership in Indianapolis. We are ready to buy your old car at an attractive price, even if you don’t buy one from us. Visit Indy Auto Man today and take selling your car off the to-do list!