Maybe one of the most important decisions in the life of your vehicle is knowing “if it’s the best time to trade in your car or truck.” 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 isn’t mint? It probably won’t be a shock to learn that there is not a simple answer to these questions. Yet, we do have some tips and tricks to help you figure out what time is the best time to trade in your car or truck.
This is typically the first question owners wonder. Most folks believe that the easiest way to receive top dollar for their pre-owned car is to do it on their own vs. trading it for another car. Still, there are a couple of factors to consider when deciding if you should sell your car beforehand instead of trade it in.
With only a few special circumstances, selling a vehicle can take weeks or longer; especially if the car needs repair work. The seller would have to arrange every single aspect of the sale process, from posting an advertisement, to test drives, to haggling on price, and everything in between. On the other hand, trading a vehicle usually happens the same day you buy your new vehicle with minimal fuss or stress.
Typically the seller is responsible for providing the buyer with the paperwork, such as registration and the title. For the inexperienced seller, this may be a discouraging and even lengthy process if there are unexpected challenges, like a lien, assigned to the paperwork. We are ready to do all of the paperwork, including surprises.
One of the most notable benefits to trading in your vehicle is the potential tax benefit in states with a state sales tax. For these states, there is a credit applied to the new car’s sales tax if the buyer trades in a car at the same location they purchase a new one. Simply, the taxes are calculated at the price difference after the value of the trade-in is calculated into the final sale price. The savings can easily reach up to thousands of dollars, depending on which car you are purchasing.
There are plenty of opinions on this, especially since contemporary cars are specifically built for high mileage usage. But, there’s a general agreement of these three mileage ranges to consider when trading your vehicle in:
This is the time when the majority of new car warranties typically end. On the other hand, this is when the first replacement of ‘wear’ components, like brakes or tires, are typically done on cars. The depreciation of your vehicle will usually begin to accelerate faster at this point, so the closer your vehicle is to this mileage, the better your trade-in will usually be.
Depending on usage, a vehicle that gets to this milestone will generally be 3 to 5 years old and most likely has had many trips to the local automotive repair shop for routine maintenance. Clearly as the miles add up, the value of the vehicle gets lower so owners should take this into account when considering their trade-in.
Thanks in part to advancements in modern technology, this mileage isn’t nearly the automotive death notice that it was in the past. Yet, the more miles a vehicle has, the more the depreciation. Vehicles within this milestone can still have a positive trade-in value even though they aren’t in mint condition. The cosmetic and mechanical condition of your car is definitely looked at more closely as the miles pile up on the odometer.
Lastly, an important piece of trading in a vehicle is being ready for the trade-in assessment. While the following ideas are not an exhaustive list, these steps can definitely help you get the most value out of your trade.
This ought to be a fairly obvious point, but some people think that showing their car ‘as-is’ is a more honest approach to a trade-in evaluation. While we don’t advocate hiding blemishes or problems (spoiler alert, they will see through that regardless), it is always a good idea to clean up your vehicle before bringing it in for the appraisal. This means removing all debris and trash from inside your car (yes the trunk too), vacuuming and washing the exterior and interior, and maybe even doing a nice interior and exterior detailing. Think of the appraiser as a buyer of the vehicle and prepare the vehicle.
We get that repair bills can be overwhelming, especially for serious mechanical problems. However, if you can fix minor dings, chips in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic fixes will go a long way towards improving the price of your trade. When possible, we recommend fixing any mechanical issues the vehicle may have as well. The nicer your car is, the better the trade-in value will be.
If you’ve decided trading in your vehicle is the best decision, then we suggest coming to the dealership with all of your car’s documentation, which includes 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 your vehicle in and you will speed up the process of driving home in your new car.
If you’re wondering where you can trade in your car for another car, Group 1 Hyundai Southwest Houston 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.
