Maybe one of the more important decisions in the life of your current car is figuring out “if it is the best time to trade in your car.” Should I trade it in after a specific time? Is there such a thing as too many miles? What if it isn’t in perfect condition? It probably should not be a shock to learn that there is not an easy answer. However, we do have a few advice to help you figure out when is the best time to trade in your vehicle.
This is generally the first question car owners ask themselves. Most folks believe that the best way to receive top dollar for their car is to sell it themselves versus trading it in. Still, there are some things to look at when trying to decide if you should trade your car or just sell it.
Selling a car can take several weeks or longer; particularly if the car is in less-than-ideal condition. You would have to take care of every single aspect of the sale procedure, from creating an ad, to test drives, to arguing the price, and anything else that pops up. On the other hand, trading in a vehicle generally occurs when you buy your new one.
Usually the seller is accountable for the necessary paperwork, such as registration and the car’s title. Trying to do everything alone could be a discouraging and even lengthy procedure if unexpected challenges like a lien, are connected to the paperwork. We are equipped to do all of the paperwork, unexpected challenges included.
One of the most notable benefits of trading in your vehicle is the potential tax benefit in places with a state sales tax. For these states, there’s a tax credit applied to the new car’s sales tax if you trade in a vehicle at the same dealer they purchase a new car. 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 the high hundreds and even thousands of dollars.
There are lots of schools of thought on this question, especially since contemporary vehicles are specifically designed to last a long time. However, there’s general consensus on three mileage milestones to consider when trading in your vehicle:
This is when most new car warranties expire. Conversely, this is when the first replacement of ‘wear-and-tear’ components, like tires or brakes, are usually performed on most cars. The depreciation of your car will usually begin to grow more quickly at this point, so the nearer your vehicle is to these miles, the more desirable your trade-in appraisal will usually be.
Depending on usage, a car that gets to this mileage will generally be between 3 to 5 years old and most likely has had many appointments at the local automotive repair shop for routine maintenance. As the miles add up, the value tends to decrease so owners need to think about this when weighing their trade-in options.
Thanks to modern engineering, this milestone is no longer the automotive death notice that it was before. Yet, the higher the mileage of your car, the more the depreciation. Cars within this milestone could still have a positive trade-in value even though they aren’t in perfect condition. The cosmetic and mechanical condition of your vehicle is definitely scrutinized more closely as the miles increase on your odometer.
Lastly, an important piece of trading in the car is being prepared for the trade-in assessment. The following ideas are not the only ideas, to be sure, but these steps can definitely help you get the best value out of your car.
This should be a no-brainer, but some people believe showing the car ‘as-is’ is an honest approach to a trade-in assessment. While we do not advocate hiding blemishes or problems with the vehicle (Just so you know, they will see through that regardless), it’s always a good idea to clean up your vehicle before bringing it in for evaluation. This includes tossing all trash and debris from inside your car (including the trunk), vacuuming and washing the exterior and interior, and perhaps even doing a nice exterior and interior detailing. Just think of the appraiser as a potential buyer and tidy up the vehicle.
We realize that automotive repairs can be overwhelming, especially for serious mechanical concerns. But, if it is possible to fix minor dings, defects in the paint, and cracks in the various mirrors, windows, and windshield, all of those repairs will go a long way towards improving the price of your trade-in. If possible, we suggest fixing any mechanical concerns the car may have as well. The nicer your car is, the more value you will get for your trade-in.
If you have decided that trading in your car is the best decision, then we recommend coming to the dealership with all of your paperwork, which includes the title (if you have it), registration, any repair receipts you have, and keys you have for the car. Arrive ready to trade your car in and you won’t suffer any delays in driving away in your new one.
If you’re wondering where you can trade in your car for another car, Genesis of 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.
