Maybe one of the biggest decisions in the life of your current car is knowing “if it’s the right time to trade in your vehicle.” Is it best to trade it in within a specific number of years? Is there such a thing as too many miles? What if it is not mint? It probably will not be a shock to figure out there isn’t a simple answer to these questions. But, we do have a few advice to help you decide what time is the best time to trade in your vehicle.
This is usually the first thing owners consider. Most people assume that the best way to receive top dollar for their pre-owned vehicle is to sell it on their own vs. trading it for another vehicle. Still, there are a few points to think about when attempting to decide if you should trade-in your vehicle or sell it.
Selling a car can take weeks or longer; particularly if the vehicle is in less-than-ideal condition. You would have to arrange every single aspect of the sale process, from creating an ad, to test drives, to arguing the price, and everything in between. On the other hand, trading a car usually happens when you buy your new car.
Typically the person selling the vehicle is responsible for providing the buyer with the paperwork, such as registration and the title. Trying to do everything yourself could be a disheartening and long procedure if unexpected challenges like a lien, are connected to the paperwork. We are ready to do all of the paperwork, challenges included.
One of the biggest benefits to trading in your vehicle is the possible tax savings offered in states with a state sales tax. In these states, there’s a tax credit applied to the new car’s sales tax if the buyer trades in a car at the same location where they purchase a new one. The taxes are only applied to the price difference once the value of the trade-in is calculated into the new car price. The savings can reach up to thousands of dollars, depending on what car you’re buying.
There are many schools of thought on this, especially since newer vehicles are specifically built to last a long time. Yet, there’s a nearly universal agreement of these three mileage ranges to consider when trading your car in:
This is the time when nearly all new car warranties end. On the other hand, this is also when the first major replacement and repairs of ‘wear’ parts, like tires or brakes, are generally performed on vehicles. The depreciation of your car will usually begin to accelerate faster at this point, so the closer your car is to this mileage, the more desirable your trade-in will be.
Depending on usage, a vehicle that gets to this mileage will be three to five years old and most likely has been well maintained. Obviously as the miles add up, the value of the vehicle gets lower so vehicle owners ought to think about this when weighing their trade-in options.
Thanks to advancements in modern manufacturing, this mileage is no longer the automotive death sentence that it was before. But, the higher the mileage a vehicle has, the more the depreciation in all but the rarest cases. Anything within this milestone can still have value even though it might not be in perfect condition. The looks and mechanical condition of your car is reviewed more closely as the miles pile up on that odometer.
Finally, an important piece of trading in your car is being ready for the trade-in appraisal. While the following recommendations are not the only ideas, to be sure, they can definitely help you get the most value out of your car.
This ought to be a no-brainer, but some people believe showing their car ‘as-is’ is a more honest approach to a trade-in appraisal. While we’re not advocating trying to hide problems or blemishes (spoiler alert, they will see through those attempts anyway), it is always a good idea to clean up your vehicle to the best of your ability before bringing it to the dealership for appraisal. This includes tossing all trash and debris from inside your car (yes the trunk too), washing and vacuuming inside and outside, and perhaps even doing a nice interior and exterior detailing. Think of the evaluator as a buyer and tidy up the vehicle.
We get that repair bills can be overwhelming, especially for major mechanical concerns. However, if it is possible to repair minor dings, chips in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic repairs will go a long way towards improving the value of your trade-in. When possible, we suggest repairing any mechanical problems the car may have. The better the condition of the vehicle, the more value you will get for your trade-in.
If you have decided trading in your vehicle is the best option for you, then we suggest coming to the dealership with all of your car’s documentation, including the title (if you have it), registration, any repair receipts you have, and keys you have for the vehicle. Come ready to trade-in your car and you will speed up the process of driving home in your new vehicle.
No matter the time of year, month or day of the week, BMW of Houston Midtown invites you to trade in your luxury car or SUV in Houston, TX. We provide great advice and tips for how to get the most value for your trade-in and can help you get behind the wheel of a new car. Schedule an inspection appointment online or visit our dealership today.
