Here at North End Motors we strive to provide an unmatched level of service and care to all of our customers, whether you’re servicing your vehicle with us, purchasing a car, truck, or SUV, or trading in your vehicle. There are a number of factors that will affect the amount you’ll receive for your trade-in when a member of our team is determining your car’s trade in value, below we’ll be taking a closer look at what exactly these are.
First and foremost, your vehicle’s model year will have a large impact on what you’ll receive for an offer after your friendly trade appraisal. Naturally, a newer model year will typically earn a higher trade in value than an older model. However, there is a range where you’d receive the most for your vehicle given that it’s in good mechanical condition. From around year three through five you’ll gain more in value for your vehicle. The first two years from the model’s release usually see the steepest drop in value, and from there the overall decline evens out more and will steadily decrease.
(With the New Year fast approaching, and with it a new model year, your vehicle’s value will continue to decline when those new models come. While it’s possible to receive a bit more for your trade in the first two quarters of the year, trading in your vehicle now will give more when compared to January 1st.)
This three to five year period is also when most people are upgrading to their next vehicle. It’s around here when the average customer has built up enough equity to avoid carrying borrowed money into their next loan. This is known as negative equity, equity being the value of your vehicle versus the amount of money borrowed. You’ll want to avoid carrying too much negative equity from your previous loan into your next vehicle, as this can raise your payment. We give a more in depth example of equity in our previous article on how your interest rate is determined here.
At any point, the best way to maintain a better trade-in value for your vehicle over time is to make sure your vehicle stays in the best shape through routine service. Staying up to date with standard maintenance like oil changes, tire rotations, and for us here in New England keeping your vehicle winter ready will all serve to put you in a better situation when you do decide to have a trade appraisal done on your vehicle.
We’ve seen a few factors that will affect your vehicle’s trade in value. We’re committed to help you make the best financial decision at every step in the car buying and selling process. For more information on all things automotive make sure to check in with us here at North End Motors. Stay safe and stay healthy!
The article above was collected from various sources representing an opinion the best vehicle trade in practices. Consumers should pursue a variety of sources when in looking to sell or trade in their vehicle. This article is not meant to replace research undertaken by consumers and should not be used as the sole source of information on the topic. North End Motors Inc. is not to be held liable should the above information be used in any way other than for what it is intended to be, a cursory opinionated overview of the topic.