Perhaps one of the biggest times in the life of your current vehicle is knowing “if it’s the right time to trade in your vehicle.” Do you trade it in within a specific time frame? Is there a point-of-no-return on the odometer? What if it is not mint? It probably will not be a surprise to find out that there is not a one-size-fits-all answer. But, we’ve got some tips and advice to help you decide when to trade in your car.
This is typically the first thing car owners ask themselves. Most folks think that the only way to receive top dollar for their pre-owned vehicle is to sell it themselves versus trading it for a newer vehicle. Yet, there are a couple of things to look at when deciding if you should sell your vehicle instead of trade it in.
Selling a car can take several weeks, if not longer; particularly if the vehicle needs repairs. You would have to take care of every part of the sale procedure, from advertising to scheduling test drives, to haggling on price, and anything else that pops up. On the other hand, trading a vehicle usually occurs the same day you purchase your new vehicle with little effort.
Normally the seller is accountable for providing the buyer with the required paperwork, such as registration and the title. If you are new to selling, this can be a frustrating and even lengthy procedure if there are unexpected challenges, like a lien, connected to the paperwork. The dealer is capable of taking care of the paperwork, challenges included.
One of the most notable benefits of trading in your car is the potential tax savings in places with a state sales tax. In these states, there is a credit applied to the new vehicle’s sales tax if you trade in a vehicle at the same location where they purchase a new vehicle. In short, the taxes are calculated at the price difference once the trade-in value is calculated into the new vehicle sale price. The savings can easily reach up to thousands of dollars.
There are many thoughts on this question, especially with late model vehicles that are specifically built for higher mileage usage. However, there’s a nearly universal agreement of these three mileage milestones to keep in mind when considering trading your car in:
This is the time when nearly all new car warranties usually expire. Conversely, this is also when the first replacement of ‘wear’ items, like brakes or tires, are generally done on most vehicles. Your car depreciation will generally begin to grow more quickly after this milestone, so the closer your car is to this mileage, the higher your trade-in will usually be.
Depending on usage, a vehicle that reaches this milestone will be three to five years old and most likely has had many visits to the local automotive service bay for routine and not-so-routine maintenance. As the miles add up, the value of the vehicle gets lower so owners need to think about this when considering their trade-in options.
Thanks to advancements in modern engineering, this mileage isn’t nearly the automotive death notice that it was previously. However, the higher the mileage a vehicle has, the greater the depreciation in all but the most pristinely kept vehicles. Vehicles within this milestone can still have value even if they might not be in mint condition. The condition of the vehicle is scrutinized more closely as the miles increase on that odometer.
Finally, a crucial piece of trading in your vehicle is being prepared for the trade-in evaluation. These ideas are not an exhaustive list, to be sure, but these steps can help you get the most value out of your car.
This should be a no-brainer, but people believe presenting the vehicle ‘as-is’ is a more honest approach to a trade-in appraisal. While we do not advocate trying to hide blemishes or problems (FYI, the assessors will see through that anyway), it is never a bad idea to clean up your vehicle before bringing it in. This means getting rid of all trash and debris from inside the car (including the trunk), vacuuming and washing inside and out, and perhaps even doing a nice interior and exterior detailing. Think of the evaluator as a potential buyer and clean the vehicle accordingly.
We understand that automotive repair bills can be overwhelming, especially for significant mechanical problems. However, if it’s possible to fix minor dings, defects in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic repairs will significantly help improve the value of your trade. If possible, we suggest fixing any mechanical problems the vehicle may have as well. The nicer your car is, the better the trade-in value will be.
If you have decided that trading in your vehicle is the best decision, then we recommend coming to the dealership with all of your documentation, including the title (if you have it), registration, any repair logs you have, and all copies of the vehicle’s keys. Come ready to trade-in your car and you will not be delayed in driving home in your new one.
Considering trading in your luxury car or SUV for a new one? Mercedes-Benz of Boerne provides the help you need to get the best value for your trade-in. Call us to schedule an appointment or visit our dealership to get started.
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