Perhaps one of the biggest times in the ownership of your vehicle is understanding “when is the best time to trade in your car or truck?” Is it best to trade it in within a specific time? Is there such a thing as too many miles? What if it isn’t mint? It probably will not be a surprise to find out that there isn’t a one-size-fits-all answer. Yet, we do have some tips and advice to help you figure out when is the best time to trade in your car, truck, or SUV.
This is typically the first question car owners ask themselves. Most of us think that the easiest way to get top dollar for their pre-owned vehicle is to sell it on their own versus trading it for another vehicle. Yet, there are some points to consider when deciding if you should trade your car or sell it separately.
Selling a vehicle can take weeks, if not longer; especially if the vehicle is in less-than-ideal condition. You would be accountable for every facet of the sale procedure, from advertising, to test drives, to haggling on price, and everything in between. Conversely, trading in a car usually occurs the same day you get your new car with minimal fuss or stress.
Normally you would be accountable for the necessary paperwork, such as the title and registration. If you are new to selling, this may be a frustrating and even lengthy process if unexpected challenges like a lien, are attached to the paperwork. We are capable of taking care of the paperwork, including surprises.
Maybe the biggest benefit to trading in your vehicle is the possible tax benefit found in states with a state sales tax. In these states, there is a credit applied to your new car’s sales tax if you trade in a car at the same location where they buy a new car. In short, the taxes are calculated at the price difference once the trade-in appraisal is factored into the new vehicle sale price. The savings can quickly reach the high hundreds and even thousands of dollars, depending on which car you’re purchasing.
There are lots of schools of thought on this question, especially with late model vehicles that are specifically engineered for higher mileage usage. But, there is general consensus on these three mileage milestones to think about when trading your vehicle in:
This is the time when nearly all new car warranties typically conclude. On the other hand, this is also when the first major replacement of ‘wear’ components, like brakes or tires, are generally done on vehicles. Your car depreciation will begin to grow faster after this milestone, so the closer your vehicle is to this mileage, the better your trade-in will be.
Depending on usage, a vehicle that reaches this milestone will be between three to five years old and most likely had many appointments at the local automotive service bay for routine and not-so-routine service. As the miles pile up, the value of the vehicle gets lower so car owners ought to think about this when considering their trade-in.
It’s true that hitting this mileage isn’t nearly the automotive death sentence that it was in years past thanks in part to advancements in modern engineering. However, the higher the mileage of your vehicle, the more the depreciation in all but the rarest cases. Anything within this mileage could still have value even though it might not be in perfect condition. The condition of your vehicle is definitely reviewed more closely as the miles increase on your odometer.
Lastly, a crucial component of trading in the car is preparation for the trade-in evaluation. The following suggestions are not the only ideas but they can help you get the best value out of your trade.
This ought to be a fairly obvious point, but some people believe presenting the vehicle ‘as-is’ is a more honest way to do a trade-in assessment. While we don’t advocate trying to hide blemishes or problems (spoiler alert, they will see through those attempts anyway), it is always a good idea to clean up your vehicle before bringing it in for evaluation. This includes tossing all debris and trash from inside the vehicle (including the trunk), vacuuming and washing the exterior and interior, and perhaps even doing a nice exterior and interior detailing. Think of the appraiser as a buyer and prepare the vehicle.
We understand that repair bills can be overwhelming, especially for significant mechanical problems. But, if you can fix minor dings, defects in the paint, and cracks in the various windshield, mirrors, and windows, all of those cosmetic fixes will go a long way towards improving the price of your trade. If possible, we recommend fixing any mechanical issues the vehicle may have. The better the condition of the vehicle, the higher the trade-in value will be.
If you’ve decided trading in your car is the best decision, then we recommend coming here with all of your car’s paperwork, which includes the title (if you have it), registration, any repair logs you have, and all copies of the vehicle’s keys. Show up ready to trade your car in and you will speed up the process of driving away in your new one.
Bob Howard Hyundai invites you to trade in your car or SUV in Oklahoma City, OK. 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.
