It’s been a few years since you’ve bought your car, and you start contemplating whether or not it’s time to upgrade it. You have the option of selling your car, but trading it in offers a level of convenience that selling your car does not. When considering when to trade your car, it’s important to carefully consider timing and value to understand the best time to trade in your car.
Did you know that the value of your car drops slightly with every 10,000 miles you add? However, according to Edmunds data, there is no major drop-off at any certain mileage milestone. Although there is no magic number that will drastically change the value of your car, the model of your car does matter. When it comes to getting the most money for trading in your car, newer is better.
Drivers often focus on buying a new car around certain times of the year — whether it’s around holiday discounts or end-of-year clearances. However, the best time to trade in your older vehicle sometimes doesn’t align with those deals. Trade-in values are higher in the first two quarters of the year and quickly lowers during the final two quarters. Keep this in mind as you shop for a new car.
Just like mileage, newer is better. Your car will hold more value the more recent the model year. Although there isn’t a particular age when a car’s value plummets, by the time your car is about five years old, its residual value has likely dropped significantly. By the time your car is between five and seven years past its model year, its value will continue to decline but not as dramatically. If you haven’t traded in your car in the first five years, there’s no reason to rush to do it any time soon.
If you’ve financed a car, you’ll be surprised to learn that there is the worst time in the loan to trade in your car. It’s generally not recommended to trade in your car if you still have a balance left on the loan, and have not earned any equity. This means that you owe more money on the car than what it’s worth. To make the best decision, be sure to compare the estimated value of your car on a trade-in and how much money you owe on the loan.
Having a dependable Frederick MD auto mechanic that keeps your car in tip-top shape will ensure that you get the most money for your car when you decide to trade it in. Here at Ken’s Automotive and Transmissions, we pride ourselves on our ability to provide high-quality repairs and maintenance services.
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