If you are looking to trade in a vehicle, you’ll want to know the best possible way of optimizing your sale. Trading in a vehice is a decision that almost everyone faces at some point and involves a number of factors. One thing to remember is that a new vehicle starts to depreciate in ts value from the very moment you drive it off the dealer’s lot. The loss can be up to 25 percent of the full value in the first year alone although the depreciation level drops after this period. However, it will rise again once the vehicle has more than 50,000 miles on the clock.
You can know the trade-in value of your vehicle in several ways. The simplest is to check the Kelley Blue Book. Just search for your car in the book, locate the vehicle condition and find the appropriate mileage. This will give you what the Blue Book assesses to be true resale value of your vehicle.
This is all well and good in terms of offering a guide but what is more vital is the actual price a dealer will be prepared to pay when you trade in. To come up with a realistic figure, visit several local dealerships and ask the used car manager what price he’ll give you for your vehicle if you trade in with them.
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How much equity do you have in your vehicle? It can be an important factor during the trade in process. If you’re at the stage where you don’t owe too much money on your vehicle, it can be a good time to trade in right away as the price you’ll receive will give you extra money to use as a down payment on a new model after you pay off the outstanding balance on the old vehicle.
As vehicles age, they tend develop mechanical and cosmetic problems. After about 50,000 miles, you will probably notice your repair bills increasing and the amount of repairs growing up. Often they will be minor problems but a continual stream of bills can soon add up.
Keep an eye on these issues, especially if you still have vehicle payments outstanding. Many drivers find that their old model is “nickel and diming” them to death as the repair expenses mount. At this stage ,you should definitely consider cutting your losses and trading in the vehicle on something newer. In the long run, you’ll definitely end up saving money.
Time of Year
A good time of year to trade in a vehicle is just before the new models of car come out. This is when the dealers want to clear their lots prior to getting the new cars and offer the greatest discounts on unsold models. You will be in a strong bargaining position and can get a better deal on your trade-in if you want to purchase a new vehicle.
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Age of Car
You’ll get the best price when you trade in a vehicle if you trade it before the clock turns over on 50,000 miles. At this point, it should still be operating well and not costing too much in terms repairs. Ideally, trade in when the odometer reads between 30,000 and 40,000 miles for the optimum price.
This guide is the perfect tool. With the knowledge of when the best time to trade in a vehicle, it is sure to be a financial win for you!