What Determines Car Trade-In Value?
Firstly, Why Would You Want to Trade In Your Vehicle?
A trade-in is an act of offering your current vehicle to the dealership in exchange for credit towards another vehicle. While some dealerships may be more picky as to what they will accept, you generally shouldn’t have any issue utilizing this method.
When purchasing a new car or truck, having another vehicle to utilize as an incentive can significantly reduce your out-of-pocket cost. In fact, aside from a hefty down payment, a trade-in vehicle is arguably one of the best ways to get the lowest price possible on a new car purchase.
However, a big consideration is just how much trade-in value would be offered for your vehicle at the time of the negotiation; unfortunately, that specific number can widely vary depending on a number of factors.
Cars depreciate at an extremely fast rate (it’s well-known that as soon as you leave the dealership lot your car has already lost value), and will continue to depreciate until it no longer retains any resale value. While some utilize this value as a price point to sell the vehicle, you can also take that price and use it as credit towards a newer model.
What Determines a Car’s Trade-In Value?
There are a few considerations a dealership will take when appraising your trade-in car before proposing a credit price, the most common of which are:
- The condition of the vehicle (any current damage, etc)
- The length of ownership & mileage
- Whether the vehicle has all original equipment
- The level of demand for that specific make/model
- Presence of after-market accessories
The Condition of the Vehicle
Before taking your vehicle in to be appraised, be sure to at least clean the inside and outside of your car thoroughly (though we recommend fully detailing it for best results). If there are any major issues like a faulty A/C system, you have the choice of either fixing it ahead of time or receiving a lower trade-in value.
One of the biggest questions from vehicle owners is how to address minor dents and bumps on the surface of the vehicle, and whether that is worth fixing or not prior to trade-in. Paintless dent removal is the best way to affordably add value to your vehicle without too much of a hit to your wallet.
Length of Ownership/Mileage
While certain cars are desired because they are an older model, most dealerships will pay more for more recent models.
In general, no matter the length of ownership, the lower the mileage – the better. For example, a 2016 Prius with 30k miles would most likely get a higher trade-in value than a 2018 Prius with 120k miles (condition of vehicles aside).
Original Vehicle Vs. Replacement Parts
If a vehicle has parts that were replaced during ownership (i.e. panels), that will bring down the trade-in value significantly. A way around this is to utilize paintless dent repair for dent/dings on your vehicle as opposed to getting the panel fully replaced.
Level of Demand
Vehicles can vary in level of demand; for example, the Kia Telluride has had an explosive entrance into the market, with people waiting upwards of 6 months at a chance to purchase one. If your vehicle is a model that is in higher demand, you can expect a bigger payout for it!
Aftermarket Accessories
While the new stereo system and LED light installations may look cool, they, unfortunately, do bring down the value of your trade-in. Most people who are purchasing used cars want them to be as close to “new” as possible, and the presence of aftermarket accessories does diminish that feeling which can make that vehicle difficult to sell.
Need Help Fixing Up Your Vehicle Prior to Trade-In?
Give 618 Dent Guy a call to schedule your dent/ding problems before approaching a dealership about a trade-in for your vehicle. Be sure to ask about our mobile PDR offer to get the best paintless dent repair work in the area without even leaving your home or office!
