Learn How Much Your Car is Worth
Looking to trade in your used car for an alternative vehicle that better suits your driving needs? Trading in your car at a dealership is a hassle-free way to provide a down payment or reduce the cost of an upgraded vehicle.
Many people choose to trade in their cars at dealerships since most states offer a tax advantage – only the difference between the trade-in and the new car price is subject to sales tax. Some vehicles are even eligible for a cash offer if you are not ready to purchase a different one at that time.
It is important to be informed about how much your vehicle is worth so you can plan accordingly, and make sure you can afford the upgraded car. Continue reading to learn more about the factors dealerships consider when determining the value of your trade-in vehicle.
Damage and Maintenance History
It is beneficial to keep a log of your vehicle’s maintenance history if you plan on trading it in in the future. Dealerships take into account whether or not you have kept up with the recommended maintenance. This includes regular oil changes, maintaining tire pressure, changing engine filters, etc. Additionally, any mechanical problems your vehicle has will reduce the trade-in value of your vehicle, as the dealership will need to deduct repair costs.
Mileage
Mileage is one of the most important factors when determining trade-in value since the number determines the lifespan the vehicle has left. The less miles your car has been driven, the more money you can expect to receive when trading it in.
Condition
Aesthetics matter to buyers even when purchasing a used car. The condition of the interior and exterior of your vehicle affects it’s trade-in value because these factors determine how much the dealership can then sell it for.
Exterior dents, permanent scuffs, and paint scratches will reduce the value of your vehicle as well as interior stains, seat and console rips. Even the smell of your car can affect trade-in value. If you want to get the most bang for your buck, have your car detailed and any issues repaired prior to trading in the vehicle. A clean, well kept vehicle shows the dealership you have taken good care of the car.
Popularity of Your Make and Model
The current demand of the make and model of the vehicle is another factor that dealerships take into consideration. In order for the trade-in to be worth it to the dealership, the car needs to be able to sell. This will vary by dealership, as they determine the popularity of the vehicle by taking into account which makes and models have recently sold, and which have not.
Geographic Location
Your geographic location can affect the popularity of your make and model, as well as the condition of your vehicle. For example, a convertible vehicle may not be as sought after up north as it would be down in the south. Trucks may be more in demand in rural areas than they would be in big cities. Additionally, vehicles that have frequently been driven in adverse weather conditions, such as snow, may be more worn down due to road salt that can cause rust. Typically, cars that have been driven in mild climates are in better condition.
Learn More About the Trade-In Process
Many factors contribute to the value of your trade-in vehicle. It is important to note that you can usually receive a higher value at a dealership that sells the same brand as your car, since they will have a better sense of it’s value. Additionally, you can receive an estimate of the value of your car by entering your vehicle’s information into Kelley Blue Book. It is important to note, however, that this value is subject to change based on the dealership’s current inventory and their appraisal.
Looking to trade in your vehicle? Don’t hesitate to reach out and set up a time to bring your car to us and we will be happy to appraise it.