Can I Trade in My Car with Bad Credit?

In the meantime, you’re driving a hunk of junk that costs you more in fuel and repairs than you could’ve ever expected. It’s on its last leg. You worry that it wouldn’t survive the drive to the scrapyard, and that’s where you get your spare parts for it too.

Why not trade it in? But wait a second…can you trade in car with poor credit? Is there a benefit for you when you trade in a junk car? Will it help you buy that new car you want, or is there a better way?

Can You Trade In a Car with Poor Credit?

So here’s the thing about a trade-in: dealerships will take trades of all kinds, but they only pay a good price for vehicles they can resell. Anything that can’t be reconditioned easily and resold quickly just isn’t worth much to a dealership.

You CAN trade in a junk car, a car that doesn’t run, or one that’s not safe – even a car that’s been in an accident and hasn’t been fixed. But you’re just not going to get much for it. The dealer might give you one dollar for trade-in value or they might tell you they don’t want it at all.

The other detail to keep in mind is that the trade value you’re offered may not be an actual trade value. They could be showing you more money for your trade than you’re actually getting, then jacking up the sale price for the car you want. There are gimmicks dealers can do on the back end, and you might not even realize you’re getting hosed until it’s too late. You have to be careful.

Where Can I Trade In My Car with Bad Credit?

Pretty much any dealership will take in a trade in car with poor credit. But if your search involves “places to trade in cars near me”, there are a few suggestions.

• Local franchise dealerships. Places like your Ford, Dodge, Honda, Kia, Toyota, and Hyundai dealerships commonly take trade-in vehicles. Again, be careful about the true trade-in value you’re offered.

• Used cars lots. Many used car lots will also take in trades. Like franchised dealers, they’re going to lowball you so they can make the most money possible on both ends of the deal.

• Private sale. Very occasionally, you’ll find a car ad on Craigslist where the seller wants to trade for a different vehicle, usually for only part of the transaction value. You’ll still need to get financing for the balance of the transaction, which is tough to do when you have bad credit.

Trade In Vehicle for Cash

Can you just trade in your vehicle and get cash for your car instead? It’s the same thing as selling your car then.

It’s possible to just sell your car to the dealership too, and that may be a good option if your car is one they won’t have trouble reselling. You’ll need to make sure you’re getting a fair shake on the value, though, because the inclination is for the dealer to lowball you. They make more when you actually buy a car from them too.

Is a Trade-In the Best Thing to Do?

Want to get rid of your car quickly with little hassle? Whether you have bad credit or not, a trade-in is an easy option but it’s not the one that gets you the most money for your car. A trade-in helps lower the value of a loan, but if you can get more money for it another way, wouldn’t it make sense?

Trade In Your Car Online

You could try to trade in your car online, sight unseen. There are a bunch of dealers who sell cars online, and they’ll take trades on them without actually seeing the car first. It could work out for you, whether you have bad credit or not.

Keep in mind that you’ll have to be approved for financing before the deal is done. Plus, when they come pick up your car for the trade in, an actual appraisal typically gets completed and the value gets adjusted. Their first offer isn’t guaranteed.

Sell Your Car Privately

If you have time to deal with the headache of selling a car privately, you’ll usually get more money that way. Of course, it’s always nice to get more money for it. But does it make much of a difference when you have bad credit?

It’s good to have cash in hand when you’re buying a car with bad credit. It lowers the loan-to-value ratio for the lender, and you have a better chance of getting approved. But who has the time to wait for potential buyers, haggle for a fair price, and deal with all that pesky paperwork?

Sell Your Car to Damaged Cars

The best of all worlds is to sell your car and use the cash as your down payment for your new (or used) vehicle. But how do you do that in the easiest way for a good, guaranteed price?

Damaged Cars is the best way to get it done. Request a quote for your car. Provide all your vehicle information – make, model, year, VIN, and so on. Indicate its current condition and upload the requested pictures. You’ll get an offer for your car in around 90 seconds, and it’s guaranteed!

You’ll get paid for your car quickly for the agreed-upon price, we’ll deal with the paperwork, and you’ll have cash for the down payment on your next vehicle. What could be sweeter than that? See how much your car is worth now.