The first two quarters of the year is the best time to trade in a car, according to Edmunds.com, thanks to higher values and more buyers in the market at the beginning of the year than later in the year.
30,000 to 60,000 Miles
Your vehicle will now lose value at a significantly slower rate than in its first few years. It's a good idea to sell your car before it hits 60,000 miles if you don't want to spend a lot of money on repairs and replacement parts.
How long should you keep a car before trading in? Ideally, you want to keep a car for a few years after it is paid off before you trade it in. This way, you get to enjoy the benefits of ownership. If you can't or aren't willing to wait that long, at least make sure you have positive equity in the loan.
Neglecting maintenance and repairs can hurt your chances of getting a good deal. If your car needs repairs, it's a good idea to have them done before you trade it in. Similarly, regular maintenance, such as oil changes and tire rotations, can help improve your car's condition and value.
Trading in a car generally helps you reduce how much you'll need to borrow when buying another vehicle, but if you have a balance on your current auto loan, you may be encouraged to roll your existing balance into a new loan, which will increase your total loan costs and the interest you'll pay over the life of your ...
So, you can find out the value of your car and sell it to the dealer without thinking about your credit. If you are selling or trading in your car for another model, though, and are planning on financing, the inquiry process can impact your score. However, the vehicle trade-in itself carries no weight.
Selling your car to a private party can come with downsides, namely a more stressful and involved sales process. If you're OK accepting less for your vehicle, a trade-in at a dealership is a good option. You'll avoid unnecessary sales taxes and get the money you need for your next car quickly and easily.
Fundamentally, says Bill, "dealerships like to move money around. So it probably also is not in the buyer's best interest to mention right up front that he or she has a car they want to trade in. Because once we know that, we know you're looking to get as much money as you can out of the trade-in."
First, it lets them know you have to buy a car soon, so they don't have to worry about you taking extra time to shop around and visit other dealerships. Second, it leaves room for the dealer to lowball you on the value of your trade. They can justify their price with the information you just gave them.
DON'T Fill Up Your Tank
Lastly, never take your car in to trade it with a full tank of gas. I know, this sounds odd, but besides wasting money, it is a clear sign to the dealer that you are just shopping, and not ready to buy. Nobody fills up their car, knowing they are about to trade it.
In most cases, you can't return a car you just bought — most dealerships won't allow it. If you're unable to return a car, there are other ways to get rid of it. You can sell it or file a lemon law claim under certain circumstances.
Even if you still owe money on your current vehicle, you can trade it in. Once the dealership owns the car, it will pay the loan off. The dealer might roll that debt into the loan for your new vehicle or subtract it from your down payment.
100k Miles Or More
Yet, the more miles of your vehicle, the greater the depreciation. Vehicles within this milestone could still have a positive trade-in value even though they aren't in perfect condition. The condition of your car is looked at more closely as the miles grow on that odometer.
"After about the first 40,000 miles, vehicles depreciate at a slow and steady pace. The most dramatic drop-off is actually during the first 20,000 miles," Edmunds Senior Analyst Ivan Drury said. "The 100,000-mile myth is really just a psychological barrier that more and more car buyers are getting past.
Some vehicles automatically carry higher resale value than others. That means a higher mileage on those vehicles might not change the trade-in value significantly. A good rule of thumb is to consider your vehicle's value will drop every 10,000 miles more you put on it.
Again, don't tell the salesperson that you plan to pay cash before negotiating. The dealership may boost the car's price by over $1,000 to make up for the lost profit from not selling accessories or the extended warranty and not handling the loan.
That means the finance customer, who is usually more lucrative to serve than the cash buyer, will be a dealer's preferred customer. You can buy a car for cash.
Who is paying the most for used cars? After comparing multiple car buying websites, our team found CarMax pays top dollar for used vehicles. We received valuations from CarMax that were above the KBB trade value for each vehicle.
How long you should keep a car is up to you. The average length of ownership of a new vehicle in the U.S. is 8.4 years. “Average” is the operative word here. Some people trade automobiles like baseball cards, while others drive a car until the wheels fall off.