One of the biggest times in the life of your car is knowing “when is the right time to trade in your car?” Do you trade it after a specific time? Is there such a thing as too many miles? Does it have to be in perfect condition? It probably will not be a shock to find out that there isn’t an easy answer. However, we do have a few advice to help you figure out when to trade in your vehicle.
This is typically the first question vehicle owners wonder. Considering that most people assume the best way to receive top dollar for their used vehicle is to sell it on their own instead of trading it for a newer vehicle. Yet, there are a couple of points to think about when attempting to decide if you should sell your car first instead of trade it in.
Selling a car can take weeks, if not longer; specifically if the vehicle needs extensive repairs. The seller would be responsible for every single facet of the sale procedure, from creating an ad, to test drives, to haggling on price, and anything else that pops up. On the other hand, trading a car almost always happens at the time you buy your new one.
Normally the seller is accountable for getting the buyer the necessary paperwork, such as the vehicle’s title and registration. For the new seller, this can be a discouraging and long procedure if there are unexpected challenges attached to the paperwork, like a lien. The dealer is equipped to handle all of the paperwork, challenges included.
One of the most notable benefits of trading in your car is the potential tax benefit found in places with a state sales tax. For these states, there is a financial credit applied to the new car’s sales tax if the buyer trades in a vehicle at the same location they purchase the new vehicle. Simply, the taxes are calculated at the price difference once the trade-in price is calculated into the final sale price. The savings can easily reach hundreds and even thousands of dollars, depending on what car you are getting.
There are plenty of schools of thought on this, especially with late model cars that are specifically designed to last a long time. But, there is general consensus on three mileage milestones to consider when trading in your vehicle:
This is when the majority of new car warranties conclude. On the other hand, this is when the first replacement and repairs of ‘wear’ components, like tires or brakes, are usually done on cars. Your vehicle depreciation will generally begin to accelerate faster after this milestone, so the closer your vehicle is to these miles, the higher your trade-in will be.
Depending on how much you drive, a car that gets to this mileage will be between 3 to 5 years old and most likely has been well taken care of. As the miles add up, the value of the vehicle gets lower so owners ought to keep this in mind when weighing their trade-in options.
It is true that hitting this milestone is no longer the automotive death sentence that it was in years past, thanks to modern manufacturing. But, the higher the mileage of your car, the greater the depreciation in all but the most exceptionally kept cars. Cars within this milestone could still have value even though they might not be in pristine condition. The condition of your car is scrutinized more closely as the miles increase on the odometer.
Lastly, an important part of trading in your vehicle is preparation for the trade-in evaluation. These recommendations are not an exhaustive list but they can definitely help you get the best value out of your car.
This ought to be a fairly obvious point, but some people think that showing their car ‘as-is’ is a more honest way to do a trade-in evaluation. While we don’t advocate hiding blemishes or problems (Just so you know, the assessors will see through those attempts anyway), it’s always a good idea to clean up your car to the best of your ability before bringing it in for evaluation. This means tossing all debris and trash from inside your vehicle (including the trunk), vacuuming and washing the interior and exterior, and maybe even doing a nice detailing. Just think of the evaluator as a buyer and tidy up the vehicle.
We get that automotive repair bills can be overwhelming, especially for significant mechanical problems. However, if you can fix minor dings, defects in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic repairs will go a long way towards improving the value of your trade-in. When possible, we advise repairing any mechanical issues the vehicle may have. The nicer your car is, the better the trade-in value will be.
If you have decided trading in your car is the best option for you, then we recommend coming to the dealership with all of your documentation, including the title (if you have it), registration, any repair receipts you have, and keys you have for the vehicle. Arrive ready to trade your car in and you will not suffer any delays in driving away in your new one.
If you’re wondering where you can trade in your car for another car, Sandia BMW 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.
