Perhaps one of the biggest decisions in the life of your car is understanding “when should I trade the vehicle in?” Should I trade it after a specific time frame? Is there such a thing as too many miles on the odometer? What if it is not perfect? It probably will not be a surprise to find out there isn’t an easy answer to these concerns. However, we do have some tips to help you figure out when to trade in your car or truck.
This is typically the first thing vehicle owners wonder about. Most people think the only way to receive top value for their pre-owned car is to sell it on their own versus trading it in. Yet, there are some things to consider when trying to decide if you should sell your car instead of trade it in.
Selling a vehicle can take weeks, if not longer; particularly if your vehicle is in less-than-ideal condition. The seller would have to take care of every single facet of the sale transaction, from advertising to scheduling test drives, to negotiating price, and anything else that comes up. On the other hand, trading in a vehicle almost always happens at the time you purchase your new one.
Normally you would be responsible for the necessary paperwork, such as the car’s title and registration. If you are new to selling, this can often be a frustrating and long procedure if unexpected challenges are attached to the paperwork, like a lien. The dealer is equipped to handle all of the paperwork, challenges included.
One of the most notable benefits of trading in your car is the potential tax benefit offered in areas with a state sales tax. In these states, there is a tax credit applied to the new car’s sales tax if the buyer trades in a car at the same place where they buy a new one. Simply, the taxes are calculated at the price difference after the appraisal of the trade-in is factored into the final sale price. The tax credit savings can reach hundreds and even thousands of dollars.
There are lots of thoughts on this question, especially since contemporary cars are designed to last a long time. However, there’s general consensus on the following three mileage milestones to keep in mind when considering trading in your car:
This is when most new car warranties typically conclude. Conversely, this is also when the first major replacement or repairs of ‘wear-and-tear’ components, like brakes or tires, are typically done on cars. The depreciation of your vehicle will usually start to accelerate faster after this milestone, so the closer your vehicle is to this mileage, the higher your trade-in value options will likely be.
Depending on usage, a vehicle that reaches this milestone will generally be between 3 to 5 years old and most likely has been well taken care of. As the miles add up, the value gets lower so vehicle owners should take this into account when considering their trade-in.
Thanks in part to modern manufacturing, this mileage isn’t nearly the automotive death notice that it was in the past. Yet, the more mileage a vehicle has, the more the depreciation in all but the most exceptional kept cars. Cars within this milestone could still have a positive trade-in value even though they aren’t in mint condition. The condition of the car is definitely scrutinized more closely as the miles increase on your odometer.
Lastly, an important part of trading in your car is preparation for the trade-in appraisal. These ideas are not an exhaustive list but they can help you get the best value out of your car.
This ought to be a fairly obvious point, but many people think that presenting their vehicle ‘as-is’ is a more honest approach to a trade-in assessment. While we don’t advocate hiding blemishes or problems (FYI, they will see through those attempts regardless), it’s always a good idea to clean up your vehicle before bringing it in for the appraisal. This means tossing all trash and debris from inside your vehicle (the trunk too), vacuuming and washing the exterior and interior, and perhaps even doing a nice exterior and interior detailing. Think of the evaluator as a potential buyer and prepare the vehicle.
We understand that repair bills can be overwhelming, especially for serious mechanical concerns. However, if you can repair minor dings, defects in the paint, and cracks in the various mirrors, windows, and windshield, all of those cosmetic fixes will go a long way towards improving the price of your trade. If possible, we advise repairing any mechanical concerns the vehicle may have as well. The better the condition, the more money you’ll get for your trade-in.
If you have decided trading in your car is the best decision, then we suggest coming to the dealership with all of your car’s paperwork, which includes the title (if you have it), registration, any repair documents you have, and keys you have for the car. Show up ready to trade-in your car and you will speed up the process of driving home in your new car.
Considering trading in your luxury car or SUV for a new one? Advantage BMW of Clear Lake 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.
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I love everything about this BMW dealership they have excellent customer service ! Definitely coming back!
Matthew working there was most supportive and I am most grateful to him as in the past. I confirmed the service recommendation and it was done, but the real problem was never solved and I lost $799 for nothing. The problem is as it is.
The service person I deal with there is very rude and impersonal. I have considered buying a new car somewhere else so we don’t have to deal with the service department there.
Anh was excellent in helping me lease my 2026 BMW 330I. It was very hot outside & he brought each car i test drove up to the door.
