When Should You Trade In Your Car or Truck?

Should I Trade In My Car or Truck?

This is usually the first thing vehicle owners ask themselves. Most of us believe the best way to get top value for their used vehicle is to sell it on their own versus trading it for a newer car. Yet, there are a few factors to think about when attempting to decide if you should sell your car beforehand instead of trade it in.

Selling On Your Own Typically Takes Longer

With few exceptions, selling a car can take many weeks, if not longer; particularly if your vehicle is not in great condition. You would have to take care of every aspect of the sale transaction, from posting an advertisement, to scheduling test drives, to negotiating price, and everything in between. Conversely, trading in a car almost always takes place the same day you purchase your new one.

Frustrating Documents

Typically the seller is accountable for providing the buyer with the required paperwork, such as the vehicle’s title and registration. If you are new to selling, this can often be a disheartening and long procedure if there are unexpected challenges connected to the paperwork, like a lien. We are capable of taking care of the paperwork, surprises included.

Lost Tax Benefits

Perhaps the most notable benefit of trading in your car is the potential tax benefit found in places with a state sales tax. For these states, there’s a credit applied to the new vehicle’s sales tax if you trade in a car at the same dealer they buy a new car. Simply, the taxes are calculated at the price difference once the cost of the trade-in is calculated into the final price. The tax credit savings can quickly reach up to thousands of dollars, depending on the car you are purchasing.

When Trading In A Car, What Is The Best Mileage Range?

There are many schools of thought on this question, especially with late model vehicles that are specifically built to last a long time. Yet, there is general consensus on the following three mileage ranges to think about when trading your vehicle in:

30k – 40k miles

This is the time when most new car warranties typically end. Conversely, this is when the first replacement and repairs of ‘wear’ parts, like tires or brakes, are generally performed on most cars. The depreciation of your car will usually begin to increase faster after this milestone, so the closer your vehicle is to this mileage, the better your trade-in value options will likely be.

60 – 70k miles

Depending on how much you drive, a car that reaches this mileage will be three to five years old and most likely has been well taken care of. As the miles pile up, the value gets lower so vehicle owners need to keep this in mind when weighing their trade-in options.

100,000 Miles Or More

It is true that hitting this milestone is no longer the automotive death notice that it was in years past, thanks to modern manufacturing. Yet, the higher the mileage a vehicle has, the greater the depreciation. Cars within this mileage can still have a positive trade-in value even if they might not be in mint condition. The condition of your vehicle is definitely looked at more closely as the miles increase on your odometer.

Tips At Trade-In

Lastly, an important part of trading in the vehicle is being ready for the trade-in assessment. The following ideas are not an exhaustive list, to be sure, but they will help you get the best value out of your trade-in.

Make Sure It’s Clean

This ought to be a fairly obvious point, but some people believe presenting their car ‘as-is’ is a more honest way to do a trade-in assessment. While we do not advocate trying to hide blemishes or problems with the vehicle (FYI, automotive assessors will see through those attempts regardless), it is always a good idea to clean up your vehicle to the best of your ability before bringing it in for evaluation. This includes getting rid of all debris and trash from inside the vehicle (including the trunk), washing and vacuuming the interior and exterior, and perhaps even doing a nice interior and exterior detailing. Just think of the evaluator as a buyer and clean the vehicle accordingly.

Fix What You Can

We get that auto repair costs can be overwhelming, especially for serious mechanical issues. Yet, if you can repair minor dings, chips in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic fixes will significantly help improve the value of your trade-in. If possible, we recommend repairing any mechanical problems the vehicle may have. The nicer your car is, the higher the trade-in value will be.

Have Your Bases Covered

If you have decided trading in your vehicle is the best decision, then we suggest coming here with all of your car’s documentation, which includes the title (if it’s in your possession), registration, any maintenance documents you have, and keys you have for the car. Show up ready to trade your car in and you will not be delayed in driving away in your new vehicle.