If you're looking to get the most money for your trade-in, there's a special type of incentive that you may not be aware of. Unlike traditional rebates and 0% APR deals, trade-in assistance cash is a discount that auto manufacturers sometimes offer that can help significantly boost your savings on a new car, truck, or SUV.
Here's a look at who trade-in assistance is for, what brands offer trade-in assistance bonus cash, and how much this can potentially save you on a new car purchase or lease.
Who Is Trade-In Assistance For?
Trade-in cash is generally for consumers who plan to trade-in an existing vehicle when buying a new car. While your dealer will still need to perform a trade-in evaluation, this is actually an incentive that comes directly from the manufacturer to help dealers advertise bigger discounts and lower prices.
That said, it's worth noting that trade-in assistance is a bit different from conquest cash incentives, which reward those coming from a competing brand. They're also different from loyalty discounts, which are limited to returning customers. Both of those incentives usually don't require you to trade in a car.
If you're coming from a lease, you may be eligible for trade-in assistance if your current lease is scheduled to expire soon. We often find that trade-in incentives are available whether you plan to buy or lease your next car. However, rules can sometimes vary so we recommend checking with your dealer for complete details.
What Brands Offer Trade-In Assistance?
Brands that offer trade-in cash tend to be limited to Ford, Chevy, Chrysler, Jeep, Dodge, and RAM. We never really see these types of discounts from Toyota, Honda, and other import brands. When automakers do offer trade-in assistance, the discount usually ranges from $500 to $1,000.
You may need to time your purchase to get trade-in incentives. For example, Ford offers $1,000 in trade-in assistance on most models around major holidays. We typically see these incentives come out right before a holiday weekend. This can make times like Black Friday a good time to buy.
Trade-In Assistance Pros & Cons
If you're planning on trading in a vehicle, this is solid savings that can help lower your costs. However, there's also a caveat. If you don't intend to trade in a car and a brand is advertising up to $6,000 off MSRP — $2,000 of which requires a trade-in — that could be an immediate 33% drop in savings.
If you have bad credit, trade-in assistance can be a relatively easy way to save money. Unlike special financing, trade-in assistance is available regardless of whether or not you have subprime credit. In Ford's case, the offer merely requires that your current vehicle be a 1995 or newer model.
High used car prices through the pandemic created a unique opportunity for shoppers to take advantage of trade-in equity. In many cases, this created a seller's market when going through dealers and selling cars privately. In contrast, trade-in assistance limits you to a particular brand of vehicle.
Who Should Trade In Their Car?
If your current car is financed and you want a cheaper one, be sure to consider your obligations. Factors like depreciation could make a good case for waiting to trade a car in. Alternatively, other incentives like GM Down Payment Assistance can be a good alternative if you plan to finance.