
Maybe one of the biggest times in the life of your current vehicle is knowing “when is the right time to trade ?” Do you trade it after a specific time? Is there such a thing as too many miles? What if it isn’t mint? It probably won’t be a surprise to learn there isn’t an easy answer to these concerns. But, we’ve got a few tips to help you figure out when to trade in your car.
This is usually the first question vehicle owners wonder. Most of us believe that the only way to receive top dollar for their vehicle is to sell it on their own versus trading it in. However, there are a couple of points to think about when attempting to decide if you should trade-in your vehicle or just sell it separately.
With few special circumstances, selling a car can take many weeks or longer; specifically if the vehicle needs repair work. You would have to arrange every part of the sale process, from advertising to scheduling test drives, to haggling on price, and anything else that comes up. On the other hand, trading in a car generally happens when you get your new car.
Typically you would be accountable for the necessary paperwork, such as registration and the car’s title. If you are new to selling, this may be a frustrating and even lengthy procedure if there are unexpected challenges connected to the paperwork, like a lien. The dealership is capable of taking care of the paperwork, including unexpected challenges.
One of the biggest benefits of trading in your car is the possible tax benefit found in areas with a state sales tax. In these states, there’s a financial credit applied to the new vehicle’s sales tax if you trade in a car at the same dealer where they purchase the new one. Simply, the taxes are only applied to the price difference once the trade-in value is factored into the new car sale price. The tax credit savings can quickly reach hundreds and even thousands of dollars.
There are lots of thoughts on this, especially since late model vehicles are engineered for high mileage usage. Yet, there’s a general agreement of three mileage ranges to consider when trading your vehicle in:
This is when the majority of new car warranties expire. Conversely, this is also when the first replacement of ‘wear’ parts, like tires or brakes, are usually performed on vehicles. The depreciation of your vehicle will usually begin to grow more quickly at this point, so the nearer your car is to this mileage range, the higher your trade-in value options will likely be.
Depending on usage, a vehicle that reaches this milestone will be three to five years old and most likely has had many appointments at the local automotive service bay for routine and not-so-routine maintenance. Obviously, as the miles add up, the value gets lower so vehicle owners ought to keep this in mind when considering their trade-in.
Thanks to advancements in modern technology, this mileage is no longer the automotive death notice that it was in the past. Yet, the more mileage a vehicle has, the more the depreciation in all but the rarest cases. Vehicles within this milestone can still have a positive trade-in value even if they might not be in pristine condition. The condition of your car is scrutinized more closely as the miles increase on that odometer.
Finally, an important component of trading in your car is being prepared for the trade-in appraisal. These suggestions are not an exhaustive list but these steps will definitely help you get the best value out of your trade.
This should be a no-brainer, but people believe showing their car ‘as-is’ is an honest way to do a trade-in evaluation. While we don’t advocate trying to hide blemishes or problems (Just so you know, the assessors will see through that anyway), it is never a bad idea to clean up your car to the best of your ability before bringing it in. This means removing all debris and trash from inside your car (including the trunk), vacuuming and washing inside and outside, and perhaps even doing a nice interior and exterior detailing. Think of the appraiser as a buyer of your vehicle and prepare the vehicle accordingly.
We realize that repairs can be overwhelming, especially for significant mechanical concerns. But, if you can fix minor dings, defects in the paint, and cracks in the various windshield, mirrors, and windows, all of those cosmetic fixes will help improve the value of your trade-in. When possible, we recommend repairing any mechanical issues the car 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 car’s paperwork, including the title (if you have it), registration, any maintenance documents you have, and keys you have for the vehicle. Arrive ready to trade your car in and you will not be delayed in driving home in your new one.
Considering trading in your performance sports car for a new one? Porsche El Paso 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.