When Should You Trade In Your Car?

Should You Trade In Your Car?

When is the right time to trade in your car? This is a tricky question that many consumers think about when they are considering purchasing a new vehicle. Here are a few tips and tricks to help you determine when is the best time to trade in your car.

Equity

If you have good equity, meaning your car is worth more than the remaining loan amount, you can use the difference to lower the cost of the new vehicle you’re buying. You might even be able to get some cash back.

Mileage

Being aware of your current vehicle’s mileage is key when considering trading it in. The more miles on your car, the less it’s worth. Experts suggest trading in a car before its factory warranty expires, typically around 36,000 to 60,000 miles. Cars can also become less desirable to some buyers once they reach 100,000 miles, so trading it in before then could give you more value.

Credit Score

If you’re looking to trade in your car, chances are you’re planning to buy a new one. Having a good or excellent credit score can help you secure favorable auto loan terms and save on interest payments going forward. Make sure to do your research on ongoing deals and incentives with manufacturers and dealerships.

Down Payment

While it’s generally a great idea to avoid trading in a car if you owe more than its value, having a substantial down payment can offset this problem. If you have enough money to make a significant down payment, trading in your car should still be a great option.

How To Trade-In

Upgrade your car today and enjoy the benefits of a newer and safer vehicle, as well as savings on repairs and better gas mileage. Get a better resale value and find a car that suits your lifestyle. Find the value of your car here at Virginia Auto Outlet and make a smart financial move.