Perhaps one of the biggest times in the life of your car is knowing “when should I trade my car or truck in?” Should I trade it in after a specific number of years? Is there a point where there are too many miles on the odometer? What if it is not mint? It probably will not be a shock to figure out that there isn’t a one-size-fits-all answer. Yet, we’ve got some tips and advice to help you figure out when is the best time to trade in your car, truck, or SUV.
This is generally the first thing owners consider. Considering that most of us assume the easiest way to receive top value for their pre-owned vehicle is to sell it themselves vs. trading it for a different vehicle. Still, there are a couple of factors to look at when attempting to decide if you should sell your car beforehand instead of trade it in.
Selling a vehicle can take weeks or longer; specifically if your car is not in great condition. The seller would be responsible for every aspect of the sale process, from advertising to coordinating test drives, to negotiating price, and everything in between. On the other hand, trading a vehicle almost always happens when you get your new car.
Usually the seller is responsible for providing the buyer with the required paperwork, such as registration and the title. Trying to do everything yourself could be a disheartening and long procedure if unexpected challenges like a lien, are attached to the paperwork. We are capable of taking care of the paperwork, including surprises.
Maybe the most notable benefit of trading in your vehicle is the potential tax benefit offered in places with a state sales tax. In these states, there is a financial credit applied to the new vehicle’s sales tax if the buyer trades in a car at the same dealer they purchase the new vehicle. Simply, the taxes are calculated at the price difference after the appraisal of the trade-in is calculated into the final price. The savings can easily reach up to thousands of dollars.
There are many thoughts on this, especially with newer vehicles that are specifically designed for higher mileage usage. Yet, there’s a general agreement of these three mileage ranges to think about when trading your vehicle in:
This is when nearly all new car warranties typically end. Conversely, this is when the first replacement and repairs of ‘wear-and-tear’ parts, like tires or brakes, are generally done on most cars. Your vehicle depreciation will start to increase faster after this milestone, so the nearer your car is to this mileage range, the higher your trade-in value options will likely be.
Depending on how much you drive, a car that gets to this mileage will be between three to five years old and most likely has been well maintained. Clearly as the miles add up, the value tends to get lower so vehicle owners should 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 to modern technology. However, the higher the mileage a vehicle has, the more the depreciation. Anything within this mileage could still have a positive trade-in value even if it isn’t in pristine condition. The looks and mechanical condition of the car is definitely scrutinized more closely as the miles pile up on your odometer.
Lastly, a crucial part of trading in a vehicle is being prepared for the trade-in evaluation. The following recommendations are not an exhaustive list, to be sure, but these steps will help you get the most value out of your trade.
This should be a no-brainer, but many people think that presenting the vehicle ‘as-is’ is a more honest approach to a trade-in assessment. While we are not advocating trying to hide problems or blemishes (Just so you know, the assessors will see through those attempts anyway), it’s never a bad idea to clean up your car before bringing it in. This includes tossing all debris and trash from inside your car (yes the trunk too), washing and vacuuming inside and outside, and perhaps even doing a nice interior and exterior detailing. Think of the appraiser as a potential buyer of the vehicle and prepare the vehicle accordingly.
We realize that auto repairs can be overwhelming, especially for serious mechanical issues. However, if it is possible to fix minor dings, defects in the paint, and cracks in the various windshield, mirrors, and windows, all of those cosmetic repairs will help improve the price of your trade-in. If possible, we recommend fixing any mechanical issues the car may have as well. The better the condition of the vehicle, the higher the trade-in value will be.
If you have decided trading in your vehicle is the best option for you, then we suggest coming to the dealership with all of your paperwork, including the title (if you have it), registration, any maintenance receipts you have, and all copies of the car’s keys. Show up ready to trade your car in and you will not suffer any delays in driving away in your new car.
If you’re wondering where you can trade in your car for another car, Group 1 Acura Sugar Land is the right place. We make the trade-in process simple and can get you back on the road in a new car today. Schedule an appointment online or visit our dealership to get started.
