Ruge's Ford
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3667 NY-9G Rhinebeck, NY 12572
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How Does a Trade-in Work?

A salesman is shown standing in a dealership after looking at a car's trade-in value.

A car trade-in involves transferring your ownership of your existing vehicle to a dealership in exchange for one from the same dealership. For example, you are currently driving a 2018 Ford F-150. You love your truck, but it's starting to get up there in mileage. You need your truck to get around every week for your job while spending time driving around time with your family. You see an ad from our dealership for a new 2023 Ford F-150. So, you stop in, hoping to find out the car trade-in value for your current F-150 truck. You'll need to know this to determine how much you can spend on your next truck from our dealership. This is crucial in helping you structure your deal.

At Ruge's Ford, we will work with you to help you finance your next vehicle from us. We are a full-service Ford dealership offering a vast inventory of new, used, and Certified Pre-Owned Ford trucks, SUVs, and EVs. No matter which Ford model you are looking for, you can find it here, including top trim levels and hard-to-find special edition models. If you're looking to trade in your current vehicle and use it toward your next, we welcome you to come in, and we'll be sure to give you a competitive offer for what your car is truly worth. But before you consider trading in with us, let's take a closer look at how trade-ins work.

A salesman is shown holding a toy car and a set of car keys.

How Is Trade-in Value Determined?

Each vehicle has a trade-in value, separate from the cash price for a private or dealer sale; however, each is determined similarly. The key factors are the make, model, trim level, condition, year, and mileage. In general, the older a car is and the more mileage it has on its odometer, the less it will be worth. This is the same for condition. If your vehicle is in better condition, requiring fewer repairs and having never been in a collision, the more it will be worth. In addition, certain makes and models have a higher trade-in value, as determined by the law of supply and demand. Finally, if your vehicle is a higher trim level, it will command more trade-in value than the same vehicle with similar mileage and condition and a lower trim level. In other words, the better the vehicle you are trading in, the more it will be worth.

The trade-in value is often referred to as the Blue Book Value for your vehicle. This is based on Kelley Blue Book, the group that has been providing valuations for used vehicles for over 96 years. When you get a Blue Book valuation, you will get the ballpark figures for your current vehicle's trade-in value, private sale value, and sale to a dealership. You should always keep in mind that these are estimated prices. The actual valuations change on an almost daily basis. This is a factor in the demand for used vehicles in general and your specific model in particular. It also has to do with the region in which you live. For example, there is more demand for convertible sedans and coupes in warmer climates than here in the Hudson Valley.

In general, your trade-in value will be higher than a cash price to sell. This is regardless of whether you are selling it to a dealership like us or another individual in a private sale. Dealers like us are in the business of selling new and used vehicles on our lots, as well as sourcing existing vehicles to replenish our stock of used cars. Therefore, we have an interest in making a deal work with you.

In this regard, we offer an easy trade-in tool on our website. Just type in the make, model, vehicle identification number (VIN), and license plate of your vehicle, then hit enter. This will give you the immediate Kelley Blue Book trade-in value for your vehicle. If you are having trouble finding your VIN, it will be on your vehicle's registration card, as well as the insurance card, and on a small box in the space in front of your vehicle's steering wheel. Once you are armed with this information, you will have an idea of how much we are willing to apply the trade-in value of your current vehicle against the next one you are buying from us.

We Take the Hassle Out of Trading In

Selling your existing vehicle privately can be a real hassle. There is a great deal of paperwork you need to fill out and file with your local DMV, especially if you live here in New York state. If you have an existing loan on your vehicle, you will need to get a payoff letter from the bank or finance company as well. Finally, you have to make sure the money from the private buyer clears. Nothing is worse than depositing a check after selling your car, only for it to bounce. Now you have to chase after the buyer to get your car back. Good luck.

When you trade in your existing vehicle to a dealer like us, you don't have to worry about any of these hassles. Our sales team will handle all the paperwork, including the DMV and the insurance company. Meanwhile, if you have a loan on your existing vehicle, our finance team will coordinate with the bank or finance company to handle the payoff and settlement. Our team members are experienced in doing these kinds of transactions and can fill out and file all the necessary paperwork without any problems. We have been a Ford dealership for over 70 years and have extensive experience in trade-ins. As a result, trading in your existing vehicle for your next one from us is the most hassle-free way to do this transaction.

A salesman is shown speaking to a couple about their vehicle's trade-in value.

Is a Trade-in the Same as a Down Payment?

Not exactly. Just like a cash down payment, your trade-in will go toward the purchase price of your next vehicle from our dealership. This will cover such things as the price of the vehicle, DMV costs, destination charges, and sales tax. However, you may actually get more value with a trade-in than doing a cash down payment on your next vehicle.

Let's say you are buying a new 2023 Ford F-150 XL for $35,000. The combined New York state sales tax for Dutchess County, where our dealership is located, is 8%. This would mean you have to pay $2,800 in sales tax if you give us a cash down payment. However, if you trade in your existing vehicle, this will reduce the sales tax on your new F-150. Let's say the trade-in value for your existing Ford F-150 is $10,000. This would reduce the price of the truck from $35,000 to $25,000. This is the same as if you gave us a check for $10,000 as a down payment. However, since you are trading in an existing vehicle, this also reduces the purchase price when it comes to sales taxes.

Where the sales tax on the cash down payment was still $35,000, this amount is reduced in our example to $25,000. So, this would be only $2,000 in sales tax you would have to pay, giving you $800 in savings on the transaction. When you factor in the savings you receive in time by not having to sell your existing vehicle in a private sale, you can see that trading in your existing vehicle is a better deal for you than selling it yourself and using the cash as a down payment toward your next vehicle at our dealership.

Let Us Help You Trade In Your Vehicle

Selling your existing vehicle to buy your next one can be a real hassle. It is no fun dealing with private buyers and then needing to get all the paperwork completed for the local DMV. Trading in your existing vehicle for one from our dealership is a great way to avoid all the hassles while getting an excellent deal. Contact us or come in today to trade in your existing vehicle for your next great Ford from us!