Considering Trading-In Your Car or Truck? Here Is The Ideal Time To Get The Most Money

Do I Want To Trade My Car?

This is generally the first thing car owners ask themselves. Considering that most of us think the easiest way to get top value for their vehicle is to sell it themselves versus trading it for a different car. Yet, there are a few things to consider when trying to decide if you should trade your vehicle or sell it separately.

Selling It Yourself Normally Takes Longer

Selling a vehicle can take several weeks, if not longer; particularly if your car is not in great condition. The seller would be accountable for every single facet of the sale process, from advertising to coordinating test drives, to haggling on price, and anything else that comes up. On the other hand, trading in a vehicle usually occurs when you buy your new one with only slight negotiation.

Frustrating Paperwork

Usually the seller is responsible for the paperwork, such as registration and the car’s title. Trying to do everything all alone may be a discouraging and even lengthy process if unexpected challenges like a lien, are connected to the paperwork. The dealership is ready to take care of the paperwork, surprises included.

Tax Benefits

One of the biggest benefits to trading in your vehicle is the potential tax benefit in areas with a state sales tax. For these states, there’s a financial credit applied to your new vehicle’s sales tax if you trade in a vehicle at the same dealer where they purchase a new car. In short, the taxes are calculated at the price difference once the appraisal of the trade-in is factored into the new car sale price. The tax credit savings can quickly reach the high hundreds and even thousands of dollars.

What’s The Best Mileage When Trading In A Car?

There are many opinions on this question, especially since contemporary vehicles are specifically designed for higher mileage usage. Yet, there is general consensus on three mileage ranges to think about when trading your vehicle in:

30k – 40k miles

This is the time when most new car warranties usually expire. Conversely, this is when the first replacement or repairs of ‘wear’ components, like brakes or tires, are typically done on cars. Your vehicle depreciation will generally start to accelerate faster at this point, so the nearer your car is to these miles, the more desirable your trade-in will usually be.

60,000 To 70,000 miles

Depending on how much you drive, a vehicle that gets to this milestone will be three to five years old and most likely had many appointments at the local auto service bay for routine and not-so-routine service. Obviously as the miles add up, the value of the vehicle gets lower so vehicle owners ought to take this into account when considering their trade-in.

100,000 Miles Or More

Thanks to advancements in modern engineering, this milestone isn’t nearly the automotive death notice that it was in the past. Yet, the more miles a vehicle has, the more the depreciation in all but the rarest cases. Vehicles within this milestone could still have a positive trade-in value even if they might not be in pristine condition. The cosmetic and mechanical condition of your vehicle is scrutinized more closely as the miles increase on that odometer.

Tips For Trading In Your Car

Finally, a meaningful part of trading in a vehicle is preparation for the trade-in evaluation. These ideas are not an exhaustive list, to be sure, but they can help you get the best value out of your trade.

Clean It Up

This should be a no-brainer, but some people think that showing the vehicle ‘as-is’ is a more honest way to do a trade-in evaluation. While we are not advocating hiding blemishes or problems with the vehicle (spoiler alert, they will see through those attempts anyway), it is always a good idea to clean up your car before bringing it to the dealership. This means removing all debris and trash from inside your vehicle (including the trunk), washing and vacuuming inside and outside, and perhaps even doing a nice detailing. Just think of the appraiser as a potential buyer of your vehicle and clean the vehicle.

Fix or Replace What You Can

We get that repair bills can be overwhelming, especially for major mechanical issues. However, if you can fix minor dings, chips in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic repairs will significantly help improve the value of your trade-in. If possible, we suggest fixing any mechanical problems the car may have as well. The nicer your car is, the more value you will get for your trade-in.

Have Your Bases Covered

If you’ve decided that trading in your vehicle is the best option for you, then we recommend coming here with all of your vehicle’s paperwork, including the title (if you have it), registration, any repair receipts you have, and keys you have for the vehicle. Come ready to trade your car in and you will speed up the process of driving away in your new vehicle.