What Can Impact the Trade-In Value of Your Car?

For most of us, the freedom and convenience car ownership brings is priceless. Then again, there are times you might consider paying someone to take your car away. If you’re currently contemplating buying a new or new-to-you vehicle, chances are good that you’re curious about your current vehicle’s trade-in value.

The process of trading in a vehicle can be somewhat confusing for those who have never done it before. You might wonder how dealerships come up with the figure they’re offering you. Furthermore, it can be hard to decide if their offer is generous or if you’re about to be ripped off. After all, the value of a vehicle depends on a lot of different factors, right? It’s actually not as complicated as you may think. Before you start the process of shopping for another vehicle, it’s not a bad idea to research what your current vehicle might be worth as a trade-in. Let’s take a look at what affects the trade-in value of your car, so you can be ready to confidently trade in your old car for a model that suits your needs.

How Does This Whole Trade-In Thing Work?

The concept seems simple enough: a dealership offers you a specific amount of money for your old car. However, there are a few key differences between selling your vehicle and trading it in.

When you sell your car, you have the ability to ask for whatever you want. You may or may not find someone who will pay that amount, but if you’ve priced the car fairly, it should eventually sell. However, in the meantime, the car that you’re trying to get rid of still needs insurance in most states. If your vehicle is still very driveable, you’ll want to keep it fueled up, and in good running shape in case anyone wants to try it out. You have to do the work to move the car, too, advertising in various spots and hoping the right person finds your car at the right time. Once the vehicle is sold, though, you get to keep all of the money you get.

A trade-in, on the other hand, benefits you in two ways. First, you don’t have to find someone to buy your car. Once the trade-in deal is worked out with our financing team, you hand over your keys and your title and never have to worry about your old car again. Furthermore, in exchange for your vehicle, we will give you credit toward the price of a vehicle on their lot. That credit is applied to the overall price of the vehicle, which in turn can drastically reduce your monthly payment if you choose to finance your new purchase.

So what kind of money are we talking about here? Generally speaking, you’ll receive market value for a trade-in vehicle. This is the amount that similar vehicles in similar condition are going for in similar locations. That means there isn’t an exact number that every car is or should be worth. This can be extremely frustrating when attempting to budget for a new vehicle, but there is a method to the madness.

The Art and Science of Valuing a Trade-In

The first thing to know about a trade-in is that we are going to resell your vehicle. That means we need to have a little room for profit. After all, we give the trade-in a full inspection, make any necessary updates, clean it up, and start marketing it. According to experts, a used car hangs around a dealer’s lot for only 1 to 2 weeks. That’s because we have the resources and energy to market your former vehicle in all the right places. Taking your vehicle off your hands quickly and easily means a little less money than if you were to sell privately, but a lot less hassle.

Before you start shopping around for a new vehicle, it’s not a bad idea to research your current car’s market value. There are several resources that can help you get a feel for current market pricing and trends, including Kelley Blue Book, the National Automotive Dealers Association, and Edmunds. In fact, you may want to check market value with several sites or resources, as each uses a different pool of data and algorithms to create a fair estimate for your vehicle.

Keep in mind also that the type of vehicle you’re trading in may have a lot to do with the offer you receive. We rarely turn away trade-ins completely, but we’ll be more interested in vehicles we know we can sell easily. For example, you may have a hard time trading in a convertible sports car in Wyoming in January.

How Do I Get the Most Value for My Trade-In?

When we make a trade-in offer on your vehicle, the price we’re willing to pay is based on several factors: mileage, condition, type of vehicle, and market demand. As a driver, you can’t do too much about market demand, and once you drive the miles, they’re on the odometer, so you can’t change that, either. You can’t change the type of vehicle once you’ve purchased it, but you can be a savvy shopper each time you purchase a new vehicle. Dealerships are known to have an easier time reselling vehicles that aren’t overly modified. Things you love about your car, like the bright yellow paint job, custom cheetah-print seat covers, and that underbody light kit you installed last year might look super-cool to you but may also limit the number of customers who are interested in buying that vehicle from us later on.

When it comes to trading in a vehicle, mainstream is actually a good thing. There are certain features many drivers would be thrilled to find in a used car, like a premium sound system. Moonroof or sunroof features are also popular in the used car market. However, if you have made a lot of aftermarket personalizations to your vehicle, consider the likelihood of other drivers appreciating the equipment as much as you do. The faster your trade-in can sell, the more robust an offer you’re likely to receive from the dealership.

The condition your car is in has a lot to do with the trade-in value, and that’s something you do have the ability to change. While every used vehicle is going to likely show a few signs of wear and tear, there’s a big difference between a small stain on the back seat and ripped upholstery. The less our team has to repair or replace, the more we can potentially offer you for your trade-in.

Preparing to Trade in Your Vehicle

Some drivers go as far as to have their vehicles fully detailed before they take them for appraisal as a trade-in, but you don’t necessarily need to spend that much time and money to get the best trade-in value. If you are considering trading in your vehicle in the near future, make the commitment now to keep it in excellent condition going forward. That means getting all of the trash out from under the driver’s seat, keeping up with regular maintenance, and cleaning up any messes as they occur. If there are minor malfunctions in your car that could be easily and cheaply repaired, you may wish to get those things fixed before you present your vehicle as a trade-in.

You’ll also want to have a plan of action before you visit our dealership. You can have a price in mind when you arrive, as we can be willing to negotiate the price we’re willing to provide for a trade-in depending on the current market conditions. Find out what your car may be worth, as well as how in demand it is in your area. Doing a little legwork can help take the frustration and fear out of trading in your vehicle and help you get the best trade-in value possible for your next vehicle.