How Your Break-Even Point Affects Trading in Your Car
There are many things that affect the value of your vehicle, whether that be anything from condition to loan status and which require you to pay full attention to the needs of your vehicle. Something that people often either overlook or forget is what’s referred to as the “break-even” point. This is one of the best times to trade in your vehicle, allowing you to maximize your value and get the most out of your trade-in experience. What exactly is the break-even point, what are its benefits, and when does it occur? Read on with us at Davey Auto Sales as we outline how your break-even point affects your trade-in value.
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What is a Break-Even Point?
A break-even point on your vehicle is when you’re holding a loan on it, and the trade value either matches or is larger than the amount that you owe. This provides the best time to trade in your vehicle since you’re currently in the most cost-effective period for that vehicle. Of course, this break-even point will vary from vehicle to vehicle and term to term, depending on the financial contract you signed. But, for example, if you are on a 72-month term, your break-even point will most likely be in the range of 48 to 52 months.
Benefits of a Break-Even Point
The benefit of selling at the break-even point is exactly what we mentioned, it’s the most cost-effective time to move on from your vehicle and start a new contract on a new-to-you vehicle. This is because if you can’t sell your vehicle above that trade price, you’ll have to pay the rest of that loan out of pocket. Ensure you can benefit from a break-even point by keeping track of this time and acting when the moment arises.
How to Improve Your Break-Even Point
If you’re looking to improve your break-even point on your vehicle, there are a few things you can do and to keep in mind when looking for this moment across your vehicle ownership.
- Pay a bigger deposit upfront
- Pay more than the monthly payments
- Having a finance plan without a deposit will push our breakeven point even further
- Missed payments can push your break-even point back
Trade In Your Vehicle at Davey Auto Sales
When it is time to trade in your vehicle, make sure you do it with us here at Davey Auto Sales. We’ve been serving our local Oshawa area customers since 1977 with the best trade-in experience possible. Our team does this through their long-tenured experience, commitment to our customers and expedient work ethic. Come experience this quick trade-in turnaround and visit us today. Upgrade your vehicle to one from our deep inventory, featuring the cleanest used cars you’ll find here in Oshawa. Visit us in person or give us a call; we can’t wait to help you out!