Perhaps one of the biggest times in the life of your vehicle is knowing “when is the right time to trade in your vehicle?” Is it best to trade it within a specific time frame? Is there a point-of-no-return on the odometer? Does it have to be mint? It probably should not be a shock to learn there is not an easy answer to these concerns. But, we do have some advice to help you decide what time is the best time to trade in your car.
This is generally the first question vehicle owners consider. Most folks believe that the easiest way to get top dollar for their pre-owned vehicle is to do it on their own versus trading it in. Yet, there are some things to consider when attempting to decide if you should trade your car or just sell it separately.
Selling a car can take weeks, or longer; specifically if your car needs repair work. You would have to arrange every single facet of the sale process, from posting an ad to coordinating test drives, to negotiating price, and everything in between. Conversely, trading in a car usually occurs at the time you get your new car.
Normally you would be accountable for the required paperwork, such as registration and the car’s title. For the seller, this can be a disheartening and long procedure if there are unexpected challenges connected to the paperwork, like a lien. The dealer is ready to handle all of the paperwork, including unexpected challenges.
One of the most notable benefits to trading in your vehicle is the potential tax benefit offered in areas with a state sales tax. For these states, there’s a credit applied to your new car’s sales tax if you trade in a car at the same location where they purchase the new vehicle. In short, the taxes are only applied to the price difference after the appraisal of the trade-in is factored into the new vehicle price. The savings can easily reach up to thousands of dollars.
There are plenty of schools of thought on this question, especially with newer vehicles that are specifically engineered to last a long time. Yet, there is a nearly universal agreement of these three mileage milestones to keep in mind when considering trading in your vehicle:
This is when nearly all new car warranties conclude. On the other hand, this is also when the first major replacement of ‘wear’ components, like brakes or tires, are generally performed on cars. The depreciation of your vehicle will start to increase faster after this milestone, so the nearer your vehicle is to this mileage, the higher your trade-in will be.
Depending on usage, a car that gets to this milestone will be three to five years old and most likely has been well taken care of. As the miles add up, the value gets lower so car owners should take this into account when weighing their trade-in.
Thanks in part to modern engineering, this mileage isn’t nearly the automotive death notice that it was in the past. But, the higher the mileage of your car, the greater the depreciation in all but the most exceptional kept cars. Cars within this mileage could still have value even though they might not be in perfect condition. The looks and mechanical condition of your vehicle is definitely looked at more closely as the miles increase on that odometer.
Lastly, an important part of trading in the vehicle is being ready for the trade-in evaluation. These suggestions are not an exhaustive list but they will definitely help you get the best value out of your trade-in.
This ought to be a no-brainer, but people believe showing their car ‘as-is’ is an honest way to do a trade-in assessment. While we are not advocating hiding blemishes or problems with the vehicle (Just so you know, they will see through that anyway), it’s always a good idea to clean up your car before bringing it to the dealership. This means removing all trash and debris from inside the car (the trunk too), washing and vacuuming the interior and exterior, and maybe even doing a nice interior and exterior detailing. Just think of the appraiser as a potential buyer of your vehicle and clean the vehicle accordingly.
We understand that automotive repairs can be overwhelming, especially for significant mechanical problems. But, if you can fix minor dings, chips in the paint, and cracks in the various windshield, mirrors, and windows, all of those fixes will go a long way towards improving the price of your trade-in. When possible, we suggest fixing any mechanical problems the vehicle may have. The better the condition of the vehicle, the better the trade-in value will be.
If you have decided trading in your car is the way you want to go, then we suggest coming here with all of your documentation, including the title (if it is in your possession), registration, any maintenance logs you have, and keys you have for the vehicle. Arrive ready to trade-in your car and you will not suffer any delays in driving away in your new car.
