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One of the most important decisions in the ownership of your current vehicle is understanding “if it’s the best time to trade in your vehicle.” Is it best to trade it within a specific time frame? Is there such a thing as too many miles? What if it isn’t perfect? It probably should not surprise you to learn there is not a one-size-fits-all answer. However, we do have a few tips and tricks to help you figure out when to trade in your car or truck.
This is usually the first question vehicle owners ask themselves. Considering that most people believe that the only way to get top value for their pre-owned vehicle is to do it themselves versus trading it in. Yet, there are some points to consider when attempting to decide if you should trade your vehicle or just sell it.
Selling a car can take weeks or longer; particularly if your vehicle is in less-than-ideal condition. The seller would have to take care of every single part of the sale process, from advertising to scheduling test drives, to negotiating price, and anything else that pops up. On the other hand, trading a vehicle generally happens at the time you get your new one.
Typically you would be responsible for providing the buyer with the required paperwork, such as the car’s title and registration. For the inexperienced seller, this could be a frustrating and even lengthy process if unexpected challenges like a lien, are attached to the paperwork. We are capable of taking care of the paperwork, including unexpected challenges.
One of the biggest benefits to trading in your car is the potential tax savings in states with a state sales tax. For these states, there is a tax credit applied to your new vehicle’s sales tax if you trade in a vehicle at the same place where they buy a new vehicle. The taxes are applied to the price difference once the appraisal of the trade-in is calculated into the new car price. The tax savings can reach the high hundreds and even thousands of dollars, depending on which vehicle you are purchasing.
There are plenty of schools of thought on this question, especially with late model cars that are specifically built for high mileage usage. Yet, there is general consensus on these three mileage ranges to think about when trading in your vehicle:
This is when the majority of new car warranties conclude. On the other hand, this is when the first replacement or repairs of ‘wear’ components, like brakes or tires, are usually performed on cars. The depreciation of your vehicle will start to increase faster at this point, so the nearer your vehicle is to this mileage range, the more desirable your trade-in appraisal will be.
Depending on how much you drive, a vehicle that reaches this mileage will typically be between 3 to 5 years old and most likely has been well maintained. As the miles add up, the value gets lower so car owners should keep this in mind when weighing their trade-in.
It is true that hitting this mileage is no longer the automotive death notice that it was in the past, thanks to advancements in modern technology. Yet, the higher the mileage of your car, the greater the depreciation. Vehicles within this mileage could still have value even though they might not be in mint condition. The condition of the vehicle is looked at more closely as the miles grow on your odometer.
Lastly, a crucial piece of trading in a car is preparation for the trade-in appraisal. These recommendations are not an exhaustive list, to be sure, but these steps can help you get the best value out of your car.
This should be a fairly obvious point, but many people think that presenting their car ‘as-is’ is a more honest way to do a trade-in assessment. While we do not advocate hiding blemishes or problems (spoiler alert, automotive assessors will see through those attempts anyway), it’s never a bad idea to clean up your vehicle before bringing it to the dealership for evaluation. This includes removing all debris and trash from inside your vehicle (the trunk too), vacuuming and washing the exterior and interior, and perhaps even doing a nice detailing. Just think of the appraiser as a potential buyer of the vehicle and prepare the vehicle accordingly.
We get that repair bills can be overwhelming, especially for major mechanical problems. However, if you can repair minor dings, defects in the paint, and cracks in the various mirrors, windows, and windshield, all of those fixes will go a long way towards improving the value of your trade. If possible, we suggest repairing any mechanical problems the car may have. The nicer your car is, the more money you will get for your trade-in.
If you’ve decided that trading in your car is the best decision, then we recommend coming to the dealership with all of your car’s documentation, including the title (if you have it), registration, any maintenance documents you have, and keys you have for the vehicle. Arrive ready to trade-in your vehicle and you will not suffer any delays in driving home in your new car.
Considering trading in your luxury car or SUV for a new one? Lexus of Albuquerque 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.
They always get the job done in a timely fashion. Very active on where they’re currently at and prices are very reasonable.
A real excellent purchasing experience. Lexus of Albuquerque had exactly the model we wanted. Many thanks.
Service Advisor, Ruben Cantu, was very helpful and professional. The lady in the service waiting area wa friendly and B professional. I was treated by all with respect. I highly recommend the dealership.
Tony Ramat's knowledge and understanding what I wanted lead me to purchase the UX 250h I don't like buying cars for the simple fact its an all day event, Tony Ramat kept the entire process painless, making this car buying experience enjoyably! Thank you again Tony Ramat
Amazing customer service! Jason Gates in sales is great at taking care of his customers. The service dept is excellent, too! I’ve been a loyal customer for many years, and they’ve always been fantastic! Shout out to David Espalin for being the best mechanic and to Juan, my service advisor! You are all top-notch!
