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One of the biggest decisions in the life of your car is knowing “when is the best time to trade?” Is it best to trade it within a specific time frame? Is there a point where there are too many miles on the odometer? Does it have to be perfect? It probably will not be a surprise to find out there is not an easy answer. Yet, we do have a few advice to help you understand when is the best time to trade in your car.
This is usually the first question owners ask themselves. Most of us assume the only way to get top value for their car is to sell it on their own vs. trading it in. Still, there are a few things to think about when attempting to decide if you should sell your car beforehand instead of trade it in.
With only a few exceptions, selling a vehicle can take many weeks, if not longer; especially if your car needs repairs. The seller would have to arrange every single part of the sale transaction, from creating an ad, to coordinating test drives, to negotiating price, and everything in between. On the other hand, trading in a car almost always happens at the time you get your new one.
Normally the person selling the vehicle is accountable for providing the buyer with the required paperwork, such as registration and the car’s title. For the seller, this can often be a discouraging and long procedure if unexpected challenges like a lien, are attached to the paperwork. The dealership is equipped to handle all of the paperwork, including unexpected challenges.
One of the most notable benefits to trading in your car is the possible tax benefit found in places with a state sales tax. In these states, there’s a tax credit applied to your new car’s sales tax if you trade in a vehicle at the same place where they buy a new one. In short, the taxes are calculated at the price difference once the trade-in appraisal is figured into the final sale price. The tax savings can quickly reach hundreds and even thousands of dollars, depending on the vehicle you’re purchasing.
There are lots of thoughts on this, especially since newer vehicles are designed to last a long time. But, there is a general agreement of these three mileage milestones to consider when trading your car in:
This is when nearly all new car warranties usually expire. On the other hand, this is when the first replacement and repairs of ‘wear-and-tear’ components, like tires or brakes, are typically done on cars. The depreciation of your vehicle will usually start to accelerate more quickly at this point, so the closer your car is to this mileage, the more desirable your trade-in value options will usually be.
Depending on usage, a vehicle that reaches this milestone will typically be between three to five years old and most likely had many trips to the local auto service bay for routine maintenance. Obviously as the miles pile up, the value gets lower so car owners should keep this in mind when weighing their trade-in options.
It is true that hitting this milestone is no longer the automotive death notice that it was in the past, thanks to advancements in modern engineering. Yet, the more mileage of your vehicle, the more the depreciation in all but the most exceptional kept vehicles. Vehicles within this mileage could still have value even though they might not be in pristine condition. The looks and mechanical condition of your vehicle are definitely scrutinized more closely as the miles increase on the odometer.
Lastly, a crucial component of trading in a car is preparation for the trade-in evaluation. While the following ideas are not the only ideas, these steps will definitely help you get the best value out of your car.
This ought to be a no-brainer, but some people believe showing the vehicle ‘as-is’ is an honest approach to a trade-in appraisal. While we do not advocate trying to hide blemishes or problems with the vehicle (spoiler alert, the assessors will see through those attempts anyway), it is never a bad idea to clean up your vehicle before bringing it to the dealership for the appraisal. This includes tossing all debris and trash from inside the car (including the trunk), washing and vacuuming inside and outside, and perhaps even doing a nice exterior and interior detailing. Think of the appraiser as a potential buyer of your car and tidy up the vehicle accordingly.
We realize that repair bills can be overwhelming, especially for serious mechanical issues. However, if you can repair minor dings, chips in the paint, and cracks in the various mirrors, windows, and windshield, all of those fixes will help improve the value of your trade. If possible, we recommend fixing any mechanical problems the car may have as well. The better the condition, the more value you will get for your trade-in.
If you’ve decided that trading in your vehicle is the best decision, then we suggest coming here with all of your paperwork, which includes the title (if you have it), registration, any repair documents you have, and all copies of the car’s keys. Come ready to trade your vehicle in and you will speed up the process of driving home in your new car.
Fernandez Honda invites you to trade in your car, truck, SUV, or minivan in San Antonio, TX. No matter the day of the week, time of the month or year, we are happy to value your trade-in and get you into a new vehicle. Visit our dealership in person or give us a call to schedule an appointment.
Maintenance done in timely manner, fair pricing and offers military discount. Highly recommended over others.
The service was outstanding. My sales agent Rosa, listened to exactly what I was looking for and helped me find it. Everyone was professional and courteous throughout the process.
Better service than the last time. I decided to return and hopefully it will continue.
There review was very thorough and quick. I was very pleased with the final cost.
Had a great experience and timely updates on vehicle service. Will recommend to family and friends.
