What must dealers do regarding a customer's trade-in vehicle?

Dealers must hold a customer's trade-in vehicle until financing is confirmed because this ensures that the transaction is secure and aligns with the financing process. When a customer trades in a vehicle as part of their purchase, the dealer needs to verify the financing arrangements, which often involve finalizing the terms and conditions before the trade-in vehicle can be officially processed. Holding the vehicle allows the dealer to confirm that the customer has the necessary funds or financing to complete the purchase.

This approach mitigates potential losses for the dealer and ensures that all legal and financial responsibilities regarding the vehicles involved are sorted before any ownership changes take place. This practice also benefits the customer, as it means they are less likely to face complications related to their trade-in while financing is finalized.