When Should You Trade In Your Car or Truck To Get The Most Money?

Should I Trade My Car or Truck?

This is usually the first thing vehicle owners wonder about. After all, most folks think that the easiest way to receive top value for their pre-owned car is to sell it on their own instead of trading it in. Yet, there are some things to look at when thinking about if you should sell your vehicle instead of trade it in.

Normally It Takes Longer Selling It Yourself

With only a few exceptions, selling a vehicle can take many weeks, if not longer; particularly if your car is in less-than-ideal condition. The seller would be responsible for every single aspect of the sale procedure, from creating an ad, to coordinating test drives, to negotiating price, and anything else that comes up. Conversely, trading in a car usually takes place when you purchase your new car.

Document Hassles

Usually the seller is accountable for the paperwork, such as the title and registration. Trying to do everything yourself may be a disheartening and long procedure if there are unexpected challenges assigned to the paperwork, like a lien. The dealer is capable of taking care of the paperwork, surprises included.

Lost Tax Benefits

One of the biggest benefits of trading in your car is the potential tax benefit in states with a state sales tax. In these states, there’s a tax credit applied to the new car’s sales tax if you trade in a car at the same location where they purchase a new car. In short, the taxes are only applied to the price difference once the cost of the trade-in is figured into the new vehicle sale price. The tax savings can easily reach the high hundreds and even thousands of dollars.

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

There are many thoughts on this question, especially since contemporary vehicles are specifically built to last a long time. However, there’s a nearly universal agreement of the following three mileage milestones to keep in mind when considering trading in your vehicle:

30k – 40k miles

This is the time when nearly all new car warranties end. On the other hand, this is when the first major replacement or repairs of ‘wear’ parts, like brakes or tires, are usually done on vehicles. Your car depreciation will generally begin to increase more quickly at this point, so the closer your car is to this mileage range, the more desirable your trade-in value options will usually be.

60,000 To 70,000 miles

Depending on how much you drive, a car that gets to this milestone will be between 3 to 5 years old and most likely has had many visits to the local auto repair shop for routine and not-so-routine service. As the miles add up, the value gets lower so vehicle owners should take this into account when weighing their trade-in options.

100k+ Miles

Thanks to advancements in modern manufacturing, this mileage isn’t nearly the automotive death sentence that it was in the past. However, the higher the mileage a vehicle has, the greater the depreciation. Cars within this milestone can still have a positive trade-in value even though they aren’t in perfect condition. The looks and mechanical condition of your car are looked at more closely as the miles increase on the odometer.

Tips At Trade-In

Lastly, a crucial component of trading in a vehicle is being prepared for the trade-in evaluation. The following suggestions are not the only ideas, to be sure, but they will definitely help you get the best value out of your trade-in.

Make It Clean

This should be a no-brainer, but people believe presenting the car ‘as-is’ is a more honest approach to a trade-in assessment. While we are not advocating hiding problems or blemishes (FYI, they will see through that regardless), it’s not a bad idea to clean up your vehicle before bringing it in for the appraisal. This means tossing all trash and debris from inside the car (yes, even including the trunk), washing and vacuuming inside and outside, and maybe even doing a nice detailing. Just think of the evaluator as a buyer of your vehicle and prepare the vehicle.

Repair What You Can

We get that automotive repair bills can be overwhelming, especially for significant mechanical concerns. But, if it is possible to repair minor dings, defects in the paint, and cracks in the various windows, windshield, and mirrors, all of those repairs will help improve the value of your trade-in. When possible, we suggest fixing any mechanical issues the car may have. The better the condition of the vehicle, the better the trade-in value will be.

Be Prepared

If you’ve decided that trading in your vehicle is the best option for you, then we suggest coming to the dealership with all of your car’s documentation, which includes the title (if you have it), registration, any maintenance documents you have, and all copies of the car’s keys. Arrive ready to trade-in your vehicle and you will not suffer any delays in driving away in your new one.