What Is My Car Worth?
When you go to trade your car at a dealership, some of the more obvious things to consider is the condition of the vehicle, trim level and options of your car. The dealer looks at its resale value which is driven by factors such as how popular the model is, how much demand there is for that model and what the going rate is for similar models.
HOW DOES THE CONDITION OF THE VEHICLE AFFECT TRADE IN VALUE?
Mechanical and cosmetic conditions are the two biggest factors that affect a car’s value. If your car is in good mechanical condition, it means that it doesn’t have any major problems and is safe to drive. A car in good cosmetic condition will have a clean interior and exterior with no major dents, scratches or rust.
Cars that need mechanical work means the dealer will likely have to spend money fixing it before they can sell it, so they’ll give you a lower trade-in value. Likewise, if your car has cosmetic damage, the dealer will want to repair it or discount the price to sell it as-is.
HOW DOES MILEAGE OF THE VEHICLE AFFECT ITS TRADE IN VALUE?
According to an article on KBB
The United States Department of Transportation Federal Highway Administration said that the average person drove 14,263 miles per year in 2019. That’s roughly 1,200 miles per month per driver or about 39 miles per day. By comparison, the DOT said the average annual miles was 13,476 in 2018.
If your car has more than that, it may have a lower trade-in value because it has been driven more than average. A car with low mileage is typically worth more than a car with high mileage. The reason for this is that cars with low mileage are less likely to have mechanical problems.
WHAT ARE TRIM LEVELS FOR A CAR?
The trim level of your vehicle can play a role in trade-in value because it indicates what features are included. For example, a lower trim level may not have certain features like power windows and locks, while a higher trim level will have all the bells and whistles. When it comes to options, things like a sunroof or navigation system can add value to your car.
The base model is usually the cheapest because it has the least amount of features. As you move up in trim levels, the price of the vehicle will increase because there are more features included. The most expensive trim level is typically the luxury model or the performance model.
HOW DO OPTIONS AFFECT THE TRADE IN VALUE OF A CAR?
Options can add both practicality and luxury to a vehicle, making it more desirable and, as a result, increasing its resale value. Luxury models will have features like heated seats, leather upholstery and a premium sound system. Performance models will have a more powerful engine and better handling.
Options that come standard on a particular trim level will usually have less of an effect on resale value than options that are available as upgrades. This is because cars that come with certain options already included are more common, so there is less demand for them.
HOW DOES DEMAND AFFECT THE TRADE IN VALUE OF A CAR?
The demand for a certain model can play a role in its trade-in value. If there is high demand for a certain model, the trade-in value will be higher because dealerships know they can sell it quickly. On the other hand, if there is low demand for a certain model, the trade-in value will be lower because it will take the dealership longer to sell.
WHAT IS YOUR CAR WORTH?
Trade in value can depend on a number of factors such as condition, mileage, trim level, options and demand. Dealers rely on these factors as well as industry specific resources to establish what they’re willing to give you for.
IS IT TIME TO TRADE IN YOUR VEHICLE?
We would love to give you a great offer for your old car. We are always looking for new inventory. Selling a car can be a hassle, so we take care of all the paperwork for you. You won’t have to worry about haggling with buyers or setting up appointments for test drives.
Contact us today to learn more about the process.
Posted 04/20/2022 in Trade Your Car