When you trade in your vehicle, all you have to do is visit the reseller of your choice, decide whether or not to accept their offer, then put the money toward your next one.

With the down payment from a trade-in, you can lower the amount you finance on a car loan, lessening your monthly payments and keeping extra funds in your bank account month to month. 

Trading in your used vehicle is a simple way to divest yourself of ownership and get behind the wheel of something else.

Before you trade in, consulting online resources like Shift's free estimate calculator can help you find the correct valuation for your current car. 

Though buying a used vehicle can save you thousands of dollars versus a new car purchase, where can you go for not only a great price but a quality vehicle that stands the test of time? Shift offers fair, no-haggle prices driven by powerful machine learning algorithms and tons of data. And with Shift's best-in-industry service contracts, you get the peace of mind that your car will run strong mile after mile. With a Shift Vehicle Protection plan, not only are essential components covered, but you also receive roadside assistance. Wherever you happen to be in the continental U.S., Alaska, Hawaii, or Canada, help is just a toll-free phone call away, 24 hours a day, seven days a week, 365 days a year.

Selling a vehicle to a private party and trading in each offer distinct benefits, and your preference depends on whether you value convenience or the selling price more.

Typically, selling your vehicle privately nets you top dollar but also entails a lot of work preparing it for sale, taking pictures, posting ads, and answering the phone. And even after all of those things are complete, you still have to meet the buyer in a public place, agree on a purchase price, and take care of any necessary paperwork, like transferring the title and signing a bill of sale.

On the other hand, trading in saves you time and hassle and offers the chance to drive off in your next car the same day. Though trade-in values tend to be lower than private party prices, the process is easy and simple. 

Another advantage of trading in your old vehicle involves sales tax. You only owe sales tax on the amount left once you subtract the trade-in amount from the car price in many states. This can save you many thousands of dollars on your transaction, letting you keep necessary funds in your bank account for other important obligations.

Conventional wisdom dictates that the lower the miles on a vehicle, the more value it retains. But with today's cars featuring ever-increasing build quality, that isn't necessarily true.

Yes, as the miles pass by year after year, vehicles experience depreciation. But there's no set number where used cars go through a drastic price drop. What really matters is how an owner maintains their car and its overall condition when they trade it in. 

More important to a used vehicle's trade-in value is the model year. Used cars only a few years old can retain 60-70 percent of their original price. This can be the case even when a vehicle has a substantial amount of miles on the odometer. 

But when a car reaches five years of age, it's less likely to retain such a significant portion of its original cost, no matter how good its condition. 

Owning a vehicle comes with many associated costs like fuel, insurance, and maintenance. One way of keeping your auto-related expenses low is securing good financing. Shift is with you every step of the way when you need an auto loan. Shift works with a network of trusted lenders who compete for your business, so you get the best deal on financing. When you apply for financing with Shift, there's no cost or obligation.

Just like specific times of year present better opportunities to save money on a car purchase, the same holds true when trading in.

While the best times to purchase a vehicle typically happen during holidays or clearance events with special incentives, trade-in values are higher at other times of the year. 

The initial two quarters of the year bring higher trade-in value for your car for several reasons. In the first part of the year, more customers are in the market for a vehicle, driving the need for more inventory at car dealers. And during the first months of the year, with new model-year introductions eight to 10 months away, a used vehicle feels all the newer.

With each person experiencing their own unique financial situation, the best time to trade in a car with a loan can vary.

But one financial scenario makes for a poor time for trading in a car with a loan: negative equity.

When you have negative equity on your vehicle, the loan balance exceeds the market value of your car. Also known as being "upside down on a loan," negative equity means even if you trade in your vehicle, you'll receive nothing in return and actually owe additional money to complete the process. 

If you hold positive equity on your car, contacting your lender to find the payoff amount for your loan can put you on the road toward trading it in and receiving a nice down payment on your next one. 

Finding the right car for you can be a time-consuming process. Even if you drive around to look and test drive various vehicles, you might not find the right one for you. But Shift makes car buying easy, with a large selection of fully inspected vehicles located across the country that are ready to go. The website is user-friendly, and you'll be able to find various makes and models to suit your needs and budget. Whether you're after a Honda, Toyota, or a sports car for weekend drives, Shift has what you need.