Which Factors Determine Your Car’s Trade-In Value?
Trading in your existing car is an intelligent and easy option most buyers opt for when planning to buy a new car. It has significant advantages to help cover the costs of various expenses involved in vehicle buying, such as reducing the amount of financing by applying the trade-in credit to the new car down payment. If you’re wondering what factors affect the trade-in value of your car, then sit back and let the professional financial advisors at Budds’ Chev help you out.
Below is a list of the top five factors that help you and our dealership evaluate a pre-owned vehicle’s trade-in value.
READ MORE: What Does an Auto Insurance Policy Cover?
5 Top Factors Affecting the Trade-in Value of A Car
1. Mileage
Your car’s mileage shares an inverse relationship with the trade-in value. When the odometer inclines upward, it eventually downgrades the trade-in value. In fact, in some cases, if the car mileage exceeds 100,000, there is a high chance you won’t get the desired trade-in value from the dealership because it affects the performance and condition of the car.
2. Condition
A well-maintained car will get you a higher trade-in value than one with visible scratches, dents, worn floor mats and damaged door trims. Most dealerships categorize the exterior of a vehicle into Excellent, Good, Fair and Poor to determine its condition. Make sure you repair, service or replace any damaged parts of the car before getting its trade-in value evaluated at a car dealership.
3. Accessories and Add-Ons
Most vehicle owners opt for aftermarket accessories and add-ons to enhance the performance and appearance of their vehicles. As much as these promise an intuitive and remarkable drive, they can affect the trade-in value, not always significantly but it can be a factor. Most dealerships prefer trading a car with minimum modifications to retain the original owner’s version, so you should eliminate any possible add-ons to get a higher trade-in value.
4. Age and Model
Your car’s age and model play a significant role in evaluating the trade-in value, meaning if your vehicle is from a top brand and depreciates slowly, it will get a better appraisal. Also, if some car models are in demand, the trade-in value will be higher, and dealerships prefer them over others because they know they can sell quickly.
5. Market Trends
If your car is in superb condition with minimum wear and tear and delivers promising performance, and you’re still getting a low trade-in value, it’s primarily because of fluctuating market trends. The irregular supply and demand chain and unprecedented factors like the global pandemic affect the evaluation of existing cars. For e.g. currently, due to the automotive microchip shortage, the trade-in value of your vehicle may be higher than normal to meet the market demands.
Trade-In Your Car with Budds’ Chev
Know your car’s trade worth at Budds’ Chev by putting in details about your car’s model, trim, mileage, year, make etc., on our trade-in form today. You can visit our website, our showroom or contact us here in Oakville, ON, to learn which vehicles we’re currently looking for.