Considering Trading-In Your Vehicle? Here Is The Best Time To Do It

Perhaps one of the biggest decisions in the ownership of your current vehicle is understanding "when should I trade the vehicle in?" Do you trade it after a specific time? Is there such a thing as too many miles? What if it is not in perfect condition? It probably won't be a surprise to figure out that there is not an easy answer to these concerns. However, we do have some tips and advice to help you decide when to trade in your car.

Do I Want To Trade In My Car?

This is typically the first thing vehicle owners consider. Most folks believe the only way to receive top dollar for their used vehicle is to do it themselves instead of trading it in. Yet, there are a couple of things to think about when trying to decide if you should trade-in your car or just sell it separately.

Normally It Takes Longer Selling On Your Own

Selling a vehicle can take weeks, if not longer; particularly if the car needs repair work. The seller would have to take care of every facet of the sale transaction, from advertising to test drives, to negotiating price, and everything in between. On the other hand, trading a vehicle usually occurs at the time you buy your new one with little effort.

The Hassles of Documents

Normally the seller is responsible for the necessary paperwork, such as the title and registration. If you are new to selling, this can be a disheartening and even lengthy procedure if unexpected challenges are attached to the paperwork, like a lien. We are capable of doing all of the paperwork, including unexpected challenges.

Tax Savings

Perhaps the most notable benefit of trading in your vehicle is the potential tax benefit found in states with a state sales tax. For these states, there is a financial credit applied to your new car's sales tax if the buyer trades in a car at the same place they purchase the new one. The taxes are applied to the price difference after the appraisal of the trade-in is calculated into the final price. The tax credit savings can reach the high hundreds and even thousands of dollars, depending on which car you are buying.

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

There are lots of opinions on this, especially since newer cars are specifically designed for higher mileage usage. However, there is a nearly universal agreement of these three mileage ranges to think about when trading in your vehicle:

30k - 40k miles

This is the time when the majority of new car warranties usually conclude. Conversely, this is when the first major replacement of 'wear' parts, like tires or brakes, are generally done on most vehicles. The depreciation of your vehicle will begin to grow more quickly at this point, so the closer your vehicle is to this mileage range, the higher your trade-in appraisal will usually be.

60,000 To 70,000 miles

Depending on how much you drive, a vehicle that gets to this milestone will generally be 3 to 5 years old and most likely had many trips to the local auto repair shop for routine service. Clearly as the miles pile up, the value tends to decrease so vehicle owners should take this into account when weighing their trade-in options.

100k+ Miles

Thanks in part to modern manufacturing, this mileage isn't nearly the automotive death notice that it was before. But, the higher the mileage of your car, the greater the depreciation in all but the most pristinely kept vehicles. Vehicles within this mileage could still have value even if they aren't in mint condition. The cosmetic and mechanical condition of the car is scrutinized more closely as the miles increase on the odometer.

Tips For Trading In Your Car

Lastly, an important piece of trading in the vehicle is being ready for the trade-in appraisal. While the following ideas are not an exhaustive list, to be sure, these steps will definitely help you get the most value out of your car.

Get It Clean

This should be a no-brainer, but some people think that presenting their vehicle 'as-is' is a more honest approach to a trade-in evaluation. While we don't advocate hiding problems or blemishes (spoiler alert, the assessors will see through that regardless), it's not a bad idea to clean up your vehicle to the best of your ability before bringing it in for the appraisal. This means getting rid of all trash and debris from inside your car (yes, even including the trunk), washing and vacuuming the exterior and interior, and maybe even doing a nice exterior and interior detailing. Think of the appraiser as a buyer of your vehicle and prepare the vehicle accordingly.

Repair What You Can

We understand that auto repairs can be overwhelming, especially for significant mechanical problems. However, if you can repair minor dings, chips in the paint, and cracks in the various windshield, mirrors, and windows, all of those repairs will help improve the value of your trade. When possible, we recommend repairing any mechanical problems the car may have as well. The better the condition, the more money you'll get for your trade-in.

Have Your Bases Covered

If you have decided that trading in your vehicle is the best option for you, then we suggest coming here with all of your car's documentation, including the title (if it is in your possession), registration, any repair receipts you have, and keys you have for the car. Come ready to trade your vehicle in and you will speed up the process of driving away in your new vehicle.

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