6 Benefits of Trade-In Your Used Car

by Feb 28, 2022Car selling0 comments

Ready for a new car but need to trade your used car first? It’s always the first step to figure out what are you going to do with your old car when you are looking to purchase a new one. You may sell your car privately to a friend or neighbor, list your car online for sale, or trade-in your car to a local dealer. 

6 benefits of trade-in your used car

Whether you decide to sell privately or trade it in at a dealership, there are pros and cons either way. Selling your used car privately comes with a certain amount of risk. Other than spending your time answering questions and meeting potential car buyers, you are also running into a limited interest in a private sale. Selling your used car privately could end up wasting your time and waiting weeks or months for the right buyer to come. With trading in your car, you can use the money from your old car for the replacement. In this post, let’s look at the six benefits of trading in your used car that you should know.


Trading in your used vehicle will be much simpler than selling it privately. You can skip all the steps like dealing with buyers’ questions or meeting for test drives. The process will be much simpler and faster if you trade-in at a dealership. The most important is, trade-in your used car will save you valuable time and you won’t need to expose yourself to some uncertainties.

A Bargaining Chip

If you trade in your old car and make the purchase for a new car together, it can help lower the price tag on the new vehicle you are about to sign on. You can introduce the trade in the negotiation to get a better deal on the new car purchase sometimes. In addition, if your old car hasn’t been paid off yet, some dealerships offer lease buyouts to pay off the remaining balance on your old vehicle. It means you can still buy a new car even if you still owe a balance on your old one or your lease hasn’t ended up.

Easy Paperwork

You will need to gather all the necessary paperwork for a private sale, while this can be skipped and all get handled by the dealer. Handling the paperwork can be a time-consuming task. You will only need to sign the documents if you trade in your car to a dealership.

Tax Savings

You will be taxed on the difference between the trade-in value and the new vehicle you are purchasing. For example, every car sale at a dealer in Ontario is subjected to a 13% harmonized sales tax (HST), so if you made a $30,000 purchase on a new car and received a $10,000 trade-in credit from your old one, you are taxed on the $20,000 cash difference only. That means you will end up paying $2,600 on taxes instead of $3,900 on the full price. This gives you a tax break and sometimes can be a significant saving.

Interest Savings

Trade-in your car to a dealer allows you to apply the trade-in credit to the downpayment of your new car. This can help to lower your finance cost since it reduces the amount of your car loan. That also means you don’t have to shell out all of your own savings on a down payment for your new car.

The Car Is No Longer Your Responsibility

In a private sale, you may still be responsible for any mechanical repairs or malfunctions if they occur shortly after the sale. When you trade-in at a dealership, you are no longer have any responsibilities for the vehicle as soon as you hand over the keys to the dealer.

Trade-in your used car can be easy, simple, and fast.

Now you can trade in your used vehicle online with Carnex. Trade your car with a cash bonus at Carnex today!

Learn more about the benefits of buying from Carnex. We believe that all clients deserve to know the good and bad of what they’re buying. Because we wanted to know these when we bought cars. That’s why at Carnex.ca, we will proudly display every detail every step of the way. Browse all the best cars, automobile buying tips, auto insurance, young drivers, driving techniques, auto industry trends from Carnex Blog.

How to Sell A Used EV Online For A Premium

How to Sell A Used EV Online For A Premium You may be thinking about buying a new car or simply have an extra vehicle in your garage that you wish...

Buying A Used Luxury Car: Pros VS Cons

Buying A Used Luxury Car: the Pros and Cons that you should know. If you are planning to buy a used luxury vehicle, it’s better to understand the...

Conventional Vehicles vs. Electric Vehicles: Which Is Cheaper to Drive?

The automotive industry is rapidly evolving with new technology and advancements in electric vehicles (EVs). More and more people are considering...

How to Operate your Car More Efficiently?

As a driver, drive safely and efficiently should always be a top priority. Driving efficiently not only can help to protect the environment but also...

Best tools you need to quickly evaluate a used car

Lately, the demand for used cars has significantly increased. As vehicles with six figures on the odometer are sold for record prices, buying a used...

Top 8 Things to Consider Before Buying a Brand New Car

If you’re in the market for a brand new vehicle, you probably have several questions. Whether you’re wondering how to decide which car to shop for...

Looking To Buy A Used Electric Vehicle? 7 Buying Tips You Won’t Want To Miss

The sales of used vehicles hit record highs in 2021, and the demand for pre-own options is still rising. Looking at the zero-emission side, the most...

The best time to buy a car in Ontario

When is the best time to buy a car in Ontario? Indeed, the best time to buy a new car is when you need one. Your car just died? A new family member...

The Long-Term Value of Electric Vehicles: Do EVs Depreciate at a Faster Rate?

Do EVs Depreciate at a Faster Rate? In recent years, the automotive industry has witnessed a monumental shift towards sustainability with the rise...

Who is Carnex?

Carnex is an online EV dealer built for Canadians to buy and sell electric vehicles. Our mission is to provide Canadians with an alternative and transparent way to buy and sell used electric vehicles and to accelerate the transition to a sustainable green future.

Carnex.ca is Canada’s first e-commerce platform for used Electric Vehicles. Carnex is the leading Online Car Dealership in Ontario, with the company’s headquarters located in Toronto, Ontario.
Carnex is the fastest and cheapest way to buy a car online. We deliver to your door and collect your old car without extra charges. Buy Now-Pay Later Financing is available.

Why buy from Carnex?

Carnex is trusted by over 18 million buyers to find amazing discounts on used EVs and new EVs in their neighbourhood. Carnex specializes in electric vehicles, and we make the effort to make sure your EV purchase from us will be worry-free. Our skilled EV technicians perform a comprehensive diagnostic on all of our electric vehicles at Carnex because your satisfaction is very important to us. Carnex.ca will help you find the best EV bargains among the listings across Canada, and we’ll provide you with the vehicle history and comprehensive reviews for each EV.

Why Choose Us

We choose to only sale quality and zero-accident used vehicles. We are so confident in our cars that we will shamelessly show you all the perfections and imperfections of the vehicle – from the Chasis pictures to chipped paint spots.

We also offer a 9-day no question asked return policy and an 100-day in house mechanical warranty to make your purchase risk-free.

Get In Touch

7 + 9 =