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One of the more important times in the life of your current car is figuring out “when should I trade vehicle in?” Is it best to trade it within a specific time frame? Is there such a thing as too many miles? Does it have to be in perfect condition? It probably won’t be a shock to learn there is not an easy answer to these concerns. But, we’ve got some advice to help you figure out when to trade in your vehicle.
This is generally the first question owners consider. Most folks assume that the best way to receive top dollar for their pre-owned vehicle is to do it on their own vs. trading it for a newer vehicle. However, there are some points to think about when thinking about if you should sell your car beforehand instead of trade it in.
Selling a vehicle can take many weeks, if not longer; specifically if the car is in less-than-ideal condition. You would be responsible for every facet of the sale transaction, from advertising to scheduling test drives, to arguing the price, and anything else that comes up. Conversely, trading a vehicle usually occurs the same day you buy your new vehicle with minimal fuss or stress.
Normally the seller is accountable for the necessary paperwork, such as the vehicle’s title and registration. If you are new to selling, this could be a discouraging and even lengthy procedure if there are unexpected challenges, like a lien, assigned to the paperwork. The dealership is capable of taking care of the paperwork, including unexpected challenges.
One of the most notable benefits of trading in your car is the potential tax savings offered in places with a state sales tax. In these states, there is a tax credit applied to the new vehicle’s sales tax if the buyer trades in a car at the same dealer where they buy a new vehicle. Simply, the taxes are calculated at the price difference after the trade-in appraisal is figured into the new car price. The tax credit savings can reach the high hundreds and even thousands of dollars, depending on which vehicle you’re buying.
There are plenty of thoughts on this, especially with late model cars that are specifically built to last a long time. But, there’s a nearly universal agreement of these three mileage ranges to consider when trading in your car:
This is the time when most new car warranties usually end. On the other hand, this is also when the first replacement of ‘wear’ parts, like brakes or tires, are typically performed on cars. The depreciation of your vehicle will generally start to grow faster at this point, so the nearer your vehicle is to these miles, the better your trade-in value options will be.
Depending on usage, a vehicle that reaches this mileage will typically be between 3 to 5 years old and most likely had many trips to the local auto repair shop for routine maintenance. As the miles pile up, the value of the vehicle gets lower so owners should take this into account when considering their trade-in.
It is true that hitting this milestone isn’t nearly the automotive death sentence that it was in years past, thanks to advancements in modern manufacturing. Yet, the more miles a vehicle has, the more the depreciation in all but the most pristinely kept cars. Anything within this mileage can still have value even if it might not be in perfect condition. The looks and mechanical condition of your car are definitely looked at more closely as the miles grow on the odometer.
Finally, a crucial piece of trading in the car is being ready for the trade-in evaluation. These recommendations are not an exhaustive list, to be sure, they will definitely help you get the best value out of your trade-in.
This ought to be a no-brainer, but many people believe showing their vehicle ‘as-is’ is a more honest approach to a trade-in appraisal. While we are not advocating hiding blemishes or problems with the vehicle (FYI, they will see through that anyway), it’s always a good idea to clean up your car to the best of your ability before bringing it to the dealership. This means tossing all debris and trash from inside your vehicle (the trunk too), washing and vacuuming the interior and exterior, and perhaps even doing a nice exterior and interior detailing. Just think of the appraiser as a potential buyer and clean the vehicle accordingly.
We understand that automotive repair costs can be overwhelming, especially for significant 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 fixes will go a long way towards improving the value of your trade. If possible, we suggest repairing any mechanical concerns the vehicle may have. The better the condition, the better the trade-in value will be.
If you’ve decided that trading in your vehicle is the best option for you, then we suggest coming to the dealership with all of your car’s paperwork, which includes the title (if you have it), registration, any maintenance documents you have, and all copies of the car’s keys. Come ready to trade-in your vehicle and you will not be delayed in driving away in your new one.
If you’re wondering where you can trade in your car for another car, Shawnee Mission Kia 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.