When Should You Trade In Your Vehicle?

Do I Want To Trade In My Car?

This is usually the first question car owners ask themselves. After all, most folks think that the only way to receive top dollar for their pre-owned vehicle is to do it on their own vs. trading it in. However, there are a few factors to consider when trying to decide if you should sell your vehicle instead of trade it in.

Typically It Takes Longer Selling It Yourself

Selling a vehicle can take several weeks, if not longer; specifically if the car needs repair work. You would be responsible for every aspect of the sale transaction, from advertising, to test drives, to negotiating price, and everything in between. On the other hand, trading a vehicle generally takes place when you buy your new vehicle.

Frustrating Documents

Usually the seller is responsible for providing the buyer with the necessary paperwork, such as the car’s title and registration. Trying to do everything by yourself can be a frustrating and long procedure if unexpected challenges are attached to the paperwork, like a lien. We are ready to take care of the paperwork, surprises included.

Tax Savings

Perhaps the biggest benefit to trading in your vehicle is the possible tax savings found in areas with a state sales tax. In these states, there’s a financial credit applied to your new car’s sales tax if the buyer trades in a car at the same place where they buy the new vehicle. Simply, the taxes are calculated at the price difference once the trade-in price is factored into the new vehicle sale price. The tax credit savings can quickly reach up to thousands of dollars, depending on the car you are buying.

When Trading In A Car, What Is The Best Mileage?

There are plenty of schools of thought on this question, especially with newer vehicles that are designed for higher mileage usage. But, there’s general consensus on three mileage milestones to consider when trading your car in:

30,000 To 40,000 miles

This is the time when most new car warranties usually end. Conversely, this is also when the first replacement of ‘wear’ parts, like tires or brakes, are typically done on vehicles. Your vehicle depreciation will begin to increase faster after this milestone, so the nearer your vehicle is to these miles, the better your trade-in value options will be.

60 – 70k miles

Depending on how much you drive, a vehicle that reaches this milestone will typically be between 3 to 5 years old and most likely has been well maintained. As the miles add up, the value gets lower so owners should take this into account when considering their trade-in.

100k Miles Or More

Thanks in part to modern technology, this milestone is no longer the automotive death notice that it was in the past. But, the more mileage a vehicle has, the more the depreciation. Cars within this milestone could still have a positive trade-in value even though they might not be in perfect condition. The condition of your vehicle is looked at more closely as the miles increase on the odometer.

Tips For Trading In Your Car

Finally, a meaningful part of trading in a vehicle is being ready for the trade-in appraisal. These suggestions are not an exhaustive list but they can help you get the most value out of your trade.

Make It Clean

This ought to be a no-brainer, but people think that showing their car ‘as-is’ is an honest way to do a trade-in evaluation. While we don’t advocate trying to hide problems or blemishes (FYI, they will see through those attempts regardless), it’s always a good idea to clean up your car to the best of your ability before bringing it in. This means getting rid of all trash and debris from inside your car (the trunk too), washing and vacuuming the interior and exterior, and maybe even doing a nice exterior and interior detailing. Think of the appraiser as a buyer of your vehicle and prepare the vehicle accordingly.

Fix or Replace What You Can

We understand that automotive repair bills can be overwhelming, especially for significant mechanical issues. Yet, if you can fix minor dings, defects in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic repairs will go a long way towards improving the price of your trade. If possible, we recommend repairing any mechanical concerns the car may have. The better the condition, the more money you will get for your trade-in.

Know Your Stuff

If you have decided that trading in your vehicle is the way you want to go, then we suggest coming to the dealership with all of your car’s paperwork, including the title (if it is in your possession), registration, any maintenance logs you have, and all copies of the car’s keys. Arrive ready to trade your car in and you will not be delayed in driving home in your new car.