
Maybe one of the biggest decisions in the ownership of your car is understanding “when is the right time to trade?” Should I trade it after a specific number of years? Is there a point where there are too many miles on the odometer? Does it have to be in mint condition? It probably should not be a surprise to learn that there isn’t a simple answer. However, we do have some tips and advice to help you decide what time is the best time to trade in your vehicle.
This is typically the first thing vehicle owners consider. Considering that most folks assume that the only way to receive top dollar for their pre-owned vehicle is to do it themselves vs. trading it in. Still, there are some factors to think about when thinking about if you should trade-in your car or just sell it separately.
Selling a car can take many weeks, if not longer; specifically if your car needs repairs. The seller would be responsible for every part of the sale procedure, from advertising to coordinating test drives, to negotiating price, and anything else that pops up. Conversely, trading a car usually happens when you purchase your new vehicle.
Typically the seller is accountable for providing the buyer with the necessary paperwork, such as the title and registration. Trying to do everything alone could be a frustrating and long procedure if unexpected challenges like a lien, are attached to the paperwork. The dealer is capable of taking care of the paperwork, challenges included.
One of the biggest benefits to trading in your vehicle 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 car’s sales tax if you trade in a vehicle at the same dealer where they buy the new one. In short, the taxes are calculated at the price difference once the cost of the trade-in is factored into the final price. The tax credit savings can reach the high hundreds and even thousands of dollars, depending on which car you’re buying.
There are lots of opinions on this question, especially with newer vehicles that are engineered to last a long time. However, there is a general agreement of these three mileage milestones to keep in mind when considering trading in your vehicle:
This is the time when most new car warranties typically end. Conversely, this is when the first replacement of ‘wear-and-tear’ components, like brakes or tires, are generally performed on most vehicles. The depreciation of your vehicle will usually start to accelerate more quickly at this point, so the nearer your car is to these miles, the better your trade-in value options will likely be.
Depending on how much you drive, a car that reaches this milestone will typically be between three to five years old and most likely has been well maintained. Obviously as the miles pile up, the value tends to decrease so vehicle owners should think about this when considering their trade-in.
Thanks in part to modern technology, this mileage is no longer the automotive death notice that it was previously. But, the more miles of your car, the more the depreciation in all but the rarest cases. Cars within this milestone can still have a positive trade-in value even if they aren’t in pristine condition. The looks and mechanical condition of the vehicle is scrutinized more closely as the miles pile up on that odometer.
Lastly, a crucial piece of trading in a vehicle is being ready for the trade-in evaluation. The following suggestions are not the only ideas but these steps will help you get the most value out of your car.
This should be a no-brainer, but some people think that showing the car ‘as-is’ is a more honest way to do a trade-in appraisal. While we’re not advocating trying to hide problems or blemishes with the vehicle (Just so you know, automotive assessors will see through those attempts anyway), it’s not a bad idea to clean up your vehicle to the best of your ability before bringing it to the dealership for evaluation. This includes getting rid of all debris and trash from inside the vehicle (the trunk too), washing and vacuuming the interior and exterior, and perhaps even doing a nice interior and exterior detailing. Think of the evaluator as a buyer of the car and tidy up the vehicle.
We get that repairs can be overwhelming, especially for serious mechanical problems. However, if you can fix minor dings, chips in the paint, and cracks in the various windows, windshield, and mirrors, all of those fixes will significantly help improve the value of your trade-in. If possible, we recommend repairing any mechanical problems the vehicle may have as well. 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 way you want to go, then we recommend coming here with all of your documentation, which includes the title (if you have it), registration, any maintenance receipts you have, and all copies of the vehicle’s keys. Show up ready to trade-in your vehicle and you will not suffer any delays in driving away in your new car.
If you’re wondering where you can trade in your car for another car, Toyota of Anaheim 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.