When you go to buy a new car, you have options when it comes to your existing car. You can either use the car for a trade-in, keep the car to sell it privately, or keep the car to use it.
What you should you do, while a personal decision, can also boil down to a financial question – how much is your next vehicle?
A brand new, or very new, car will benefit from you using your current car as a trade-in. Many car dealerships will offer $2,000, $3,000, $4,000 or more for a trade-in. This can help drive down your monthly costs for your new car loan.
But, if you are buying a used car for less than $7,000 or $8,000, it might be a better idea to sell your current car. This will allow you to recoup some of that money you spend on the newer car.