Everything You Need to Know About Trading in Your Car for a Used One

September 13th, 2024 by

A silver 2018 Mazda3 is shown driving on a city street.

Eventually, everyone has to say goodbye to a vehicle. Whether you’ve driven it for ten years and need something new, or your vehicle has given up the ghost, you’ll have to look for something else to drive. When it’s time, you’ll start looking for used cars in Hillsborough. Do you want something better for commuting or off-roading? What is your financial situation? And how do you know when the time is right to make the switch? If you’ve been considering these questions for a while, you’ll be happy to know that you’re not alone. There are many drivers out there wondering if it’s too late to trade in their vehicle or thinking about how to make the best investment on a new or used vehicle.

While there’s no simple answer for when to trade in your vehicle since there are so many variables, there are some general guidelines that can help you decide when and where to trade in your vehicle when the time comes. You’ll find these below, along with other helpful information to keep in mind when you’re on the hunt for a new-to-you vehicle. Without further ado, let’s get into it!

Is It Time to Trade in Your Car?

When you buy a new vehicle, you’ll hear a lot about depreciation value. Driving a new vehicle off the lot will cut its value by a lot, but after three to five years, the depreciation rate will decrease, and you’ll retain more of the value of your car for longer. Apart from that, there comes a time when you’re just ready for a newer vehicle. Do you find yourself wondering when something is going to break? Has your mechanic told you your car’s in good shape but that it’s older and, therefore, might start having issues in the near future? It might be time to consider trading it in.

It’s also a good idea to keep an eye on models like yours that are selling—how much are they being sold for? What shape are they in? How popular are they? This will give you a good idea of what to expect from a dealership when you go in to get your trade valued. You might also want to check out online tools for valuing your trade so that you can plan ahead and build a budget to make the shopping experience more pleasant and expeditious. What it comes down to is this: are you ready for something newer? Then, it’s time to take action.

A blue 2021 Nissan Altima is shown driving to view used cars in Hillsborough.

When is a Good Time to Trade?

Technically speaking, trading in a vehicle that’s between 0-10 years old will give you the best value, but you’ll experience the most depreciation right up front. What if you drive something that was already used? You’ll retain most of the value, but it won’t be as much value as a newer model might have. Experts say that you should trade in your new car after it is two to three years old because that’s usually before any major repairs have to be made. Along with that, there are a few other reasons you’ll want to consider trading your newer vehicle in between 30,000 to 40,000 miles—depreciation and warranties.

Even though a new car experiences the most depreciation, you still want to get as much value as you can from it. As a bonus, if you sell it before it’s four years old, it will still likely have an active warranty, a huge selling point for potential buyers. If you’re selling a used vehicle, you’ll want to do so before you get to 100,000 miles. If you can trade your used vehicle in around 60,000 miles, you’ll get a good value and a great deal on the car you’re trading up for.

What to Know About Trading Your Vehicle

There are other ways to maximize your trade-in, like completing the process during spring or summer. This is done because dealerships often have sales and events during the spring and summer. Have you tried shopping for a car in January or February? It’s unpleasant, to say the least. Since dealerships are offering such good deals from May to September, they’ll want to have as many vehicles on hand as possible, so they’re more likely to give you more for your trade-in than you would get if you tried to offload your vehicle in the winter.

There’s another reason to go ahead and trade in your vehicle before the fall. New models arrive in dealerships at the end of summer and the beginning of fall, and once they do, even newer used vehicles seem older. You’ll want to avoid making your car look older than it really is, so if you can afford to wait, it’s a good idea to limit your trading to the warm, sunny months. Insurance agencies, dealerships, and industry experts all say the same thing: maximize your profit and do what you can to adhere to these guidelines so that you bet the best results.

What to Look For

So, where do you go to trade in your vehicle? Many dealerships offer incentives to trade in your vehicle, like a higher offer than you’d get by just selling your vehicle. You’ll want to take a look at when dealerships run special sales and events and keep an eye out for specific models you’re interested in. Some dealerships even have an online appraisal process so that you know what you’re walking into. You might also want to speak with family and friends to see what their experiences have been—did they get a better deal because they had the car detailed beforehand? Did they have to make any major repairs prior to trading in their vehicle?

Ensuring you have all your ducks in a row will keep you moving forward to reach your goal of trading in your vehicle for something bigger, better, or more fun. You’ll also want to make sure that you get information on the vehicle you’re trading for—does it have a good reputation? Are there any known issues? Can you find recommendations online or in person? All of this will help you determine if you’re getting a good deal and, in some cases, can prevent you from trading your good car for one that doesn’t meet your expectations.

A red 2021 Volkswagen Jetta is shown driving on a highway.

Trade in Your Car for a Great Pre-Owned Vehicle With Us Today

Whether you’re just now considering the possibility of trading your vehicle in or you’ve been wanting to do so since last year, you’ve now got the information you need for maximizing the trade-in value as well as the value of the vehicle you want. Though it might seem obvious to some, many drivers don’t know where to start and feel like they’re struggling to understand the process. Dealerships don’t always play by the same rules, so if you’re curious, you can always contact our team here at CBS Quality Cars. We’ll help you through the selling process and give you a competitive offer for your vehicle. From there, you can explore our vast selection of quality pre-owned vehicles and find the one that best fits your needs and budget.

Trading in a vehicle and picking something out doesn’t have to be a hassle or nerve-wracking. It can be a fun, enlightening process that will allow you to help others in the future. Vehicle trades are common practice across the United States, so there’s a big chance that, at some point, you’ll have to trade in your current vehicle for something else. You don’t have to do it alone, though; our team is here to help you through each step of the process and ensure you’re making a great decision to trade in your current vehicle. Call or stop by today and let us help you!