With the New Year just half a block away, it is only natural to think of giving yourself a fresh start. Among the next year plans may lie a goal of updating your means of transportation. Read further to learn about the nuances of a trade-in and what to expect so that you can approach your next car change with confidence.
A car trade-in value is the monetary value of the car if sold to a dealer. Basically, it works as some sort of in-store credit you can use to buy from the dealer. The old car is sold at the same time when a new car is purchased. In most cases, the trade-in value is how much discount you can expect off the price of the new car. But it can also be used towards other negotiable options such as an extra service, extended warranty, or financing terms. This provides you with a certain amount of flexibility in meeting your goals.
To find your car’s market value, you’ll have to do some research. You can start with such online resources as Canadian Black Book or VMR Canada to get a general idea of how much your car is worth based on actual reported sales and auctions.
Make sure to take into account the actual mileage in relation to the age of the car. This will show the annual mileage, which is found around 20,000 km on average. If your vehicle’s annual mileage is significantly greater than that, your car may lose some of its value.
Also, your vehicle’s physical condition can have an effect on its trade-in value when examined by a dealer. It is a good idea to have your car serviced and cleaned before shown for the inspection.
Cars lose their value as they age, especially due to the accumulated mileage and any wear and tear. So the best timing to trade in your car is while it is still in good operating condition. The general recommendation followed by many dealers is to do the trade-in before your car hits 100,000 km.
Season-wise, the best time for trading your car is late winter, just before new models start to come out in spring and summer. This is when a lot of dealers focus on clearing their lots for new arrivals. If you approach dealerships during this time, you can find yourself in a better position to negotiate.
Car dealers, let’s admit that, are not very much interested in giving you the best offer possible. They would want to give just about enough to ensure they can later sell your car with the desired profit. This is why their assessment may result in an amount that is surprisingly different from what you’ve found out using the above mentioned online tools.
Please also keep in mind that the car model can make a huge difference. The more popular the car is, the more chances it will be sold by a dealer later. There is no obligation for a dealer to take a car. So, a not so popular vehicle can be evaluated way less than what you’d expect.
Like we indicated earlier, the dealers’ main goal is to sell the cars rather than buy them. Yes, it is possible to ask for cash back when doing a trade-in. But you should expect that the cash back amount may be less than the trade-in value used the trade-in value towards the purchase from a dealer.
Selling your car can get you a better price compared to what you can get at the dealer, but there is no guarantee for that. Additionally, if you need a car on a daily basis, you may have to coordinate the timing of the selling of your old vehicle with buying a new one so as to minimize the time gap between the two deals. Trade-in, on the other hand, can eliminate these difficulties and possibly make your life easier. You can benefit from having the two operations done simultaneously as part of a single deal and save time on searching for a buyer. So if your priority to get things done as easy and fast as possible, trade-in is a better option.
If you decide to trade-in your car, we can help you with that as well as with securing your financing solution. By working with CarEvo, you can have your car replacement done in one place. You won’t have to even leave your home – all can be done right from your phone.