When you purchase a vehicle and drive it off the lot, the value will depreciate slightly. As time goes on and mileage increases, the vehicle will continue to depreciate, making it worth even less. If you think you might want to trade it in again, choose an optimal time. That way, you increase your potential trade-in value. There is no exact mileage number that will make or break your vehicle’s trade-in value — but if it’s possible, you should trade your vehicle in before it reaches 100,000 miles.
At Rydell Outlet Center, we have a sell/trade program available for customers just like you. If you are considering a new car and aren’t sure what to do with your old one, let us help. We do not only accept trade-in vehicles – we also buy cars. You can sell us your vehicle outright to use for cash without the need to purchase another one. Use our Kelley Blue Book Valuation tool and find out what your vehicle is worth today.
If you aren’t ready just yet to sell or trade your vehicle in, here are some helpful tips on what mileage points you should consider when trading it in.
Trading Your Vehicle In Based on Mileage
There is no secret number on the odometer that will make or break the value of your vehicle. Some vehicles automatically carry higher resale value than others. That means a higher mileage on those vehicles might not change the trade-in value significantly. A good rule of thumb is to consider your vehicle’s value will drop every 10,000 miles more you put on it. You can also use the mileage to track important milestones that can affect your decision on when to trade in your car.
The first is the window between 30,000 and 40,000 miles. This point is often when the first set of bigger repairs occur. Bumper-to-bumper warranties typically expire around this period too. Many new car warranties expire at the three-year or 36,000-mile mark, whichever occurs first. During your first repairs, you may need to replace items like brakes or tires. You could spend over $300. However, dealers may offer you more for your vehicle if it’s in excellent condition and doesn’t require any major repairs.
The second milestone to be mindful of is 60,000 to 70,000 miles. You can expect tires and brakes to need replacing during this time as well. Your car may need other maintenance services too, and you may be looking at a new battery. The value of your trade-in during this period will also depend on the age of your vehicle. Many vehicles that have reached 60,000 or more miles are at least five years old. Your vehicle could have already taken a major hit in depreciation.
The third major milestone is when your vehicle’s odometer hits 100,000 miles. While many newer cars can easily last well beyond the 100,000-mile mark, the truth is that depreciation often hurts the value of your vehicle at this point. Cars which have traveled 100,000 miles or more may not be eligible for dealers’ certified pre-owned program. Hence, its value may decrease further.
The make, model, and year of your vehicle are important for a vehicle that has logged 100,000 miles or more. If your vehicle is newer and you racked up high mileages, it may still have some significant value. To know for certain, you can check our Kelley Blue Book Valuation tool or talk to one of our staff members. You might be surprised at how much value your car still has.
COVID-19 and Used Car Prices
The pandemic actually caused used car prices to increase. Initially, there was a decrease in the number of used vehicles being sold. However, by the end of 2020, prices were on the rise. This is important for those looking to trade in or sell their vehicle. You could have the unique opportunity right now to trade your vehicle in for a higher price than normal if prices continue to trend upward.
The reason for the increase in prices may be due to people wanting to skip public transportation and drive their own car given the health crisis. Interest rates have also remained low, enticing other buyers to get a new vehicle. Meanwhile, the demand for a used vehicle is higher than before, possibly because people are concerned about financial stability given the pandemic’s effect on the global economy.
Trading In Your Vehicle Versus Selling It
Some people question why they should trade a vehicle in when they can sell it for more on their own. When we purchase a vehicle, we have to consider additional costs, such as advertising and reconditioning costs. While you may make a little more money by selling it yourself, it can also prove to be more costly and time consuming.
You will need to spend considerable time and resources to market the vehicle on your own. You need to increase the vehicle’s visual appeal. Then, you have to advertise it and be present to show the vehicle to prospective buyers. You then have to where to show the car and whether you would let people meet with you at your home.
You also have to protect yourself from possible scammers. Some people who contact private car sellers may end up being fake buyers and even attempt to steal the car. And while there are ways to ensure that the prospective buyer is credible, this would usually require a lot of extra work on your part.
For these reasons, trading in your vehicle or selling it to the dealer is easier. Your time alone may be worth more than the little extra money you would receive from a private sale. You get to trade the vehicle in and be done with the process immediately.
At Rydell Outlet, we will give you top dollar for your vehicle. You can choose to receive cash or a check right there on the spot. Rather than spend weeks or months dealing with selling your car, we can complete the process in 30 minutes or less in most cases. We will come to you if you don’t want to bring your vehicle in. We can even facilitate an estate sale. To learn more, visit our website and contact us with any questions.
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