Perhaps one of the more important times in the life of your vehicle is knowing “when is the best time to trade?” Is it best to trade it in after a specific number of years? Is there a point-of-no-return on the odometer? What if it is not in mint condition? It probably should not be a surprise to find out there isn’t an easy answer. But, we do have some tips and tricks to help you understand when is the best time to trade in your car, truck, or SUV.
This is generally the first thing vehicle owners consider. After all, most people assume that the only way to receive top dollar for their vehicle is to do it themselves instead of trading it in. However, there are a couple of things to consider when attempting to decide if you should trade your vehicle or just sell it separately.
With few special circumstances, selling a vehicle can take many weeks or longer; specifically if the car is in less-than-ideal condition. You would have to take care of every single part of the sale procedure, from posting an advertisement, to test drives, to arguing the price, and anything else that comes up. Conversely, trading in a car usually happens at the time you get your new vehicle with little effort.
Typically the seller is responsible for getting the buyer the paperwork, such as registration and the title. Trying to do everything by yourself may be a disheartening and long procedure if unexpected challenges are attached to the paperwork, like a lien. We are equipped to take care of the paperwork, challenges included.
Perhaps the most notable benefit of trading in your vehicle is the potential tax savings in places with a state sales tax. In these states, there’s a credit applied to the new car’s sales tax if you trade in a vehicle at the same dealer where they purchase the new one. In short, the taxes are applied to the price difference after the appraisal of the trade-in is calculated into the new car price. The savings can quickly reach the high hundreds and even thousands of dollars, depending on which vehicle you are getting.
There are many schools of thought on this question, especially since contemporary cars are designed to last a long time. Yet, there is a general agreement of the following three mileage milestones to consider when trading in your car:
This is when most new car warranties conclude. Conversely, this is when the first replacement of ‘wear’ components, like tires or brakes, are generally performed on cars. The depreciation of your car will generally start to increase more quickly after this milestone, so the closer your vehicle is to these miles, the higher your trade-in value options will likely be.
Depending on usage, a car that gets to this milestone will typically be between 3 to 5 years old and most likely has been well taken care of. As the miles add up, the value gets lower so car owners need to keep this in mind when weighing their trade-in.
Thanks to modern manufacturing, this milestone isn’t nearly the automotive death sentence that it was in the past. But, the more miles of your car, the more the depreciation. Anything within this milestone can still have a positive trade-in value even if it might not be in perfect condition. The looks and mechanical condition of your vehicle are reviewed more closely as the miles increase on the odometer.
Finally, a meaningful piece of trading in your car is being ready for the trade-in assessment. These suggestions are not an exhaustive list but they can definitely help you get the most value out of your trade.
This ought to be a no-brainer, but many people believe presenting the car ‘as-is’ is an honest way to do a trade-in appraisal. While we’re not advocating trying to hide blemishes or problems (Just so you know, the assessors will see through those attempts regardless), it’s never a bad idea to clean up your vehicle before bringing it in for evaluation. This includes tossing all debris and trash from inside the vehicle (including the trunk), washing and vacuuming inside and out, and maybe even doing a nice interior and exterior detailing. Just think of the appraiser as a potential buyer and tidy up the vehicle.
We understand that repairs can be overwhelming, especially for serious mechanical issues. But, if it’s possible to repair minor dings, defects in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic fixes will help improve the value of your trade-in. When possible, we suggest fixing any mechanical concerns the vehicle may have as well. The nicer your car is, the higher the trade-in value will be.
If you have decided that trading in your vehicle is the best decision, then we suggest coming to the dealership with all of your paperwork, including the title (if you have it), registration, any repair documents you have, and all copies of the vehicle’s keys. Arrive ready to trade-in your vehicle and you will speed up the process of driving away in your new one.
