Perhaps one of the more important decisions in the life of your current vehicle is figuring out “when should I trade the vehicle in?” Should I trade it after a specific number of years? Is there a point-of-no-return on the odometer? What if it is not perfect? It probably will not be a shock to figure out there is not a simple answer. But, we do have a few tips and tricks to help you understand what time is the best time to trade in your car or truck.
This is generally the first thing vehicle owners ask themselves. Most folks believe the best way to get top dollar for their used car is to sell it themselves instead of trading it in. However, there are some things to consider when deciding if you should trade your vehicle or just sell it separately.
With few exceptions, selling a vehicle can take weeks, if not longer; particularly if the car is in less-than-ideal condition. You would have to arrange every single aspect of the sale transaction, from advertising to scheduling test drives, to negotiating price, and everything in between. On the other hand, trading in a car almost always happens the same day you buy your new vehicle with minimal fuss or stress.
Typically the person selling the vehicle is responsible for providing the buyer with the required paperwork, such as registration and the vehicle’s title. Trying to do everything alone could be a discouraging and long process if unexpected challenges like a lien, are connected to the paperwork. We are ready to handle all of the paperwork, including challenges.
Perhaps the biggest benefit of trading in your vehicle is the potential tax savings in areas with a state sales tax. In these states, there’s a tax credit applied to your new car’s sales tax if the buyer trades in a car at the same place they purchase a new car. Simply, the taxes are applied to the price difference once the value of the trade-in is calculated into the final price. The savings can reach the high hundreds and even thousands of dollars.
There are plenty of thoughts on this, especially with late model cars that are specifically designed to last a long time. However, there’s general consensus on these three mileage ranges to keep in mind when considering trading your vehicle in:
This is when nearly all new car warranties typically expire. On the other hand, this is also when the first major replacement and repairs of ‘wear’ items, like brakes or tires, are generally done on most cars. The depreciation of your vehicle will begin to grow faster at this point, so the closer your vehicle is to this mileage range, the better your trade-in value options will usually be.
Depending on usage, a car that gets to this milestone will be between three to five years old and most likely has been well taken care of. As the miles add up, the value of the vehicle gets lower so owners need to take this into account when considering their trade-in options.
It is true that hitting this milestone isn’t nearly the automotive death notice that it was in years past, thanks in part to advancements in modern engineering. Yet, the higher the mileage of your vehicle, the greater the depreciation. Cars within this milestone could still have a positive trade-in value even if they might not be in mint condition. The condition of the car is reviewed more closely as the miles pile up on the odometer.
Finally, a crucial part of trading in the car is being prepared for the trade-in appraisal. These recommendations are not the only ideas but these steps will help you get the best value out of your car.
This ought to be a no-brainer, but many people think that presenting the vehicle ‘as-is’ is a more honest way to do a trade-in evaluation. While we do not advocate trying to hide problems or blemishes (FYI, they will see through that anyway), it is never a bad idea to clean up your car before bringing it to the dealership for the appraisal. This means removing all debris and trash from inside your vehicle (yes the trunk too), washing and vacuuming inside and outside, and maybe even doing a nice exterior and interior detailing. Think of the appraiser as a potential buyer of the car and tidy up the vehicle.
We get that repair bills can be overwhelming, especially for major mechanical issues. Yet, if it’s possible to repair minor dings, defects in the paint, and cracks in the various windows, windshield, and mirrors, all of those fixes will significantly help improve the price of your trade-in. If possible, we advise fixing any mechanical problems the vehicle may have. The nicer your car is, the more value you’ll get for your trade-in.
If you have decided trading in your car is the best option for you, then we recommend coming here with all of your vehicle’s documentation, including the title (if it’s in your possession), registration, any repair logs you have, and all copies of the car’s keys. Arrive ready to trade your vehicle in and you will speed up the process of driving home in your new vehicle.
