Perhaps one of the biggest decisions in the ownership of your vehicle is understanding “when should I trade car or truck in?” Should I trade it in after a specific time? Is there such a thing as too many miles on the odometer? What if it is not in mint condition? It probably should not be a surprise to learn there is not an easy answer to these questions. Yet, we’ve got some tips and advice to help you understand when to trade in your vehicle.
This is usually the first thing car owners ask themselves. Most people believe that the only way to get top dollar for their used car is to sell it themselves vs. trading it in. Still, there are some factors to consider when trying to decide if you should sell your car instead of trade it in.
With only a few exceptions, selling a car can take weeks, if not longer; especially if your car needs repair work. You would be responsible for every facet of the sale transaction, from posting an ad, to test drives, to negotiating price, and everything in between. Conversely, trading in a vehicle generally happens the same day you buy your new vehicle with little effort.
Normally the person selling the vehicle is accountable for providing the buyer with the necessary paperwork, such as the title and registration. For the new seller, this may be a discouraging and even lengthy procedure if there are unexpected challenges, like a lien, assigned to the paperwork. The dealership is equipped to handle all of the paperwork, surprises included.
One of the most notable benefits of trading in your car is the possible tax benefit found in places with a state sales tax. For these states, there’s a credit applied to your new vehicle’s sales tax if you trade in a vehicle at the same location they buy the new car. The taxes are only applied to the price difference after the cost of the trade-in is calculated into the final sale price. The savings can easily reach the high hundreds and even thousands of dollars, depending on the car you’re getting.
There are many schools of thought on this, especially since late model vehicles are engineered to last a long time. Yet, there is a general agreement of the following three mileage ranges to consider when trading your car in:
This is when the majority of new car warranties typically expire. On the other hand, this is when the first replacement or repairs of ‘wear’ parts, like tires or brakes, are generally done on vehicles. Your vehicle depreciation will usually begin to grow faster after this milestone, so the nearer your vehicle is to these miles, the higher your trade-in value options will usually be.
Depending on how much you drive, a vehicle that gets to this milestone will generally be between 3 to 5 years old and most likely has had many appointments at the local auto service bay for routine maintenance. Obviously as the miles add up, the value tends to decrease so car owners should think about this when considering their trade-in.
It’s true that hitting this milestone is no longer the automotive death sentence that it was in years past, thanks in part to modern engineering. However, the higher the mileage of your car, the more the depreciation. Cars within this mileage could still have value even though they aren’t in perfect condition. The condition of the vehicle is scrutinized more closely as the miles increase on that odometer.
Finally, an important piece of trading in a car is being ready for the trade-in appraisal. These ideas are not an exhaustive list, to be sure, but they will help you get the most value out of your car.
This should be a no-brainer, but people think that presenting their car ‘as-is’ is a more honest approach to 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 anyway), it’s always a good idea to clean up your vehicle to the best of your ability before bringing it in. This includes tossing all debris and trash from inside your car (yes the trunk too), vacuuming and washing the interior and exterior, and maybe even doing a nice exterior and interior detailing. Think of the appraiser as a potential buyer and tidy up the vehicle.
We get that repair costs can be overwhelming, especially for serious mechanical issues. But, 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 value of your trade. If possible, we suggest fixing any mechanical concerns the car may have as well. The nicer your car is, the more value you will get for your trade-in.
If you’ve decided trading in your vehicle is the best option for you, then we recommend coming to the dealership with all of your documentation, including the title (if you have it), registration, any maintenance receipts you have, and all copies of the vehicle’s keys. Show up ready to trade-in your car and you will speed up the process of driving home in your new one.
Sterling McCall Chevrolet invites you to trade in your car, truck, SUV, or van in Houston, TX. No matter the day of the week, time of the month or year, we are happy to value your trade-in and get you into a new vehicle. Visit our dealership in person or give us a call to schedule an appointment.
