How to Maximize Your Car’s Trade-In Value?

When you’re ready to purchase a new car, you need to think about what to do with your old vehicle. Trying to sell your car on your own can be time-consuming, and most buyers will try to haggle down the price. One of your best options is to trade in your vehicle, which can also lower the price of your new car. But how can you make sure you’re getting the best price for your trade-in? Learn more about how trade-in values are calculated and what you can do to get top dollar for your set of wheels.

What Factors Determine Trade-In Values?

Image via Unsplash by vrchh

Five factors go into the calculations for a vehicle’s trade-in value:

• Condition of the vehicle: The vehicle’s exterior and interior condition equally play a role in determining the vehicle’s trade-in value.
• Consumer desirability: If your vehicle is particularly desirable among prospective vehicle purchasers, then you will more likely be able to trade in your vehicle for a good price.
• Vehicle make and model: If the vehicle make and model have a high value among car buyers, then the resale amount will reflect these features.
• Vehicle mileage: The higher your vehicle’s mileage, the lower the trade-in value you’ll receive. Even if you’ve maintained your vehicle to the best of your ability, an odometer that reflects high mileage may make a prospective buyer less interested in purchasing your vehicle.
• Vehicle year: Newer vehicle models get the most attention from used-car buyers. Knowing that they could make a quick sale, dealers may be more inclined to offer a higher trade-in price for a used vehicle.

To approximate your vehicle’s trade-in value, make note of its condition and mileage. Use various sources to get a clear perspective. When consulting sources, keep in mind that you may be offered several prices, which may include a trade-in value and a price for a private sale. Make sure you’re looking at the correct price.

In addition to the factors above, you should be aware of the area where you live and the vehicles that are popular in the area. Vehicle owners may not always consider location factors when they’re preparing to trade in their existing vehicles.

How Can You Boost Your Vehicle’s Trade-In Value?

To get the best trade-in value possible for your vehicle, put your focus on the following areas:

Do Your Research

Before you plan to trade in your vehicle, take time to research your vehicle’s trade-in value. You can consult Edmunds or Kelley Blue Book for information. Keep in mind, however, the following points about these sources:

• Edmunds calculates value using a variety of sources, such as dealer transactions, depreciation costs for vehicles, and characteristics such as the vehicle’s year, model, trim, manufacturer, and mileage.
• Kelley Blue Book assesses private party value, trade-in value, suggested retail value, and certified pre-owned value for vehicles. The company uses a proprietary algorithm to analyze pricing data with historical trends, location, and current economic conditions.

These popular sources won’t capture every nuance that goes into a vehicle’s estimated trade-in value. For example, lag times can occur with data reporting. Consumers may overrate the value of the vehicles they are selling or trading in. Mismatches between wholesale values and the prices used by dealers, who can access special industry-only pricing not available to members of the public, may also not be accounted for.

Make the Most of Detailing

While some vehicle buyers care more about what’s under the hood, others are more interested in visual appeal than anything else. If you want to enhance your vehicle’s best features, invest some attention and money into detailing.

Ensure Your Vehicle’s Maintenance Is Up to Date

The better the condition of your vehicle at trade-in, the more money you’ll receive for it. Before you decide to make a trade, take the time to bring your vehicle’s maintenance up to date. Now is the time to change the oil, replace worn windshield wiper blades, and check all the fluid levels in the vehicle. If you’re trying to decide whether to make specific repairs to your vehicle, think about whether the repairs will actually increase the vehicle’s value at trade-in.

Keeping accurate maintenance records can go a long way toward helping you obtain the best price possible for your vehicle. Dan Ingle, Vice President of valuations and industry solutions at Kelley Blue Book, said, “These days, regular oil changes are an even better indication of good upkeep than tuneups. If you changed your oil every 3,000 to 8,000 miles, in keeping with the manufacturer’s recommendations, that’s a good signal to a buyer that the car has been cared for.”

Pay Attention to the Body Work

Scrapes, scratches, dents, and other flaws in the bodywork can devalue your vehicle. If you want to get the best price possible, give your vehicle some cosmetic TLC. Hold onto any receipts and repair records in case a question arises later.

Request a Vehicle Service History Report

If you haven’t kept records of repairs and service work for your vehicle, such as oil changes, take the time to request a vehicle service history report from your dealership or auto services technician. The more documentation you can produce that validates the care that your vehicle got while you owned it, the better you can demonstrate that the vehicle is worth the trade-in price you want to receive for it.

Now that you’re aware of the factors that influence a vehicle’s trade-in value and what you can do to make the most of your vehicle trade-in, you’ll be ready to take the next steps. When you’ve decided to trade in your existing vehicle for a new car, bring it to Hiley Mazda of Fort Worth, your source for used vehicles and certified pre-owned cars in the Dallas-Fort Worth metroplex. Our knowledgeable staff can help answer your questions about the trade-in process to make it a stress-free experience for you. Call us at 817-367-4000 or visit us at 9120 W. Freeway in Fort Worth.