Tips For The Right Time To Trade Or Upgrade Your Vehicle

Are You Thinking of Trading or Upgrading Your Car?

People often insist there's a perfect time for everything, whether getting cheaper plane tickets, landing good hotel rates, finding fresh produce deals, or scoring a better price on a car. It's normal to be skeptical about these claims; honestly, you should be. Most of the time, those so-called "best times" just don't hold up.

That said, when it comes to buying or selling vehicles, there is a nugget of truth in this idea. Whether looking at new or pre-owned models, trading in your old car, or putting it up for sale, some periods are more favorable. The best time isn't tied to a specific date or even a particular day of the week; it's all about when the right conditions come together. So, when's the right time to trade in your vehicle for the most value?

When Is the Best Time?

When to Trade-in?

The timing can differ based on your specific vehicle compared to others when trading in your car. However, there are undoubtedly good occasions when you can get the best value for your vehicle. Below are the factors that come into play when trading in your vehicle:

Age: Cars lose value pretty fast, especially in their first couple of years. If your vehicle is just a year or two old, it's already seen quite a drop in value. You might want to hold onto it longer so that depreciation levels off and gives you a better trade-in price.

But don't wait too long. There are specific points where the value takes a hit, typically three, seven, and ten years after purchase. Those milestones usually mean less warranty coverage and lower value. Moreover, every passing year makes the tech inside feel more outdated, so it's best to trade before it becomes ancient history.

Mileage: Like age, high mileage can also hurt your trade-in value. On average, cars rack up about 12,000 miles each year. If yours is below that threshold, it could be prime time to trade since dealerships know buyers will jump at lower-mileage vehicles rather than those with lots of wear.

Wear and Tear: If you've been spending more on repairs over the last few years, it might be time to let go of that car. Compare what you're spending on maintenance with your potential monthly payment on another new or pre-owned vehicle; it could be worth it.

Supply and Demand: Keep an eye on what cars are hot in your area. If a dealer has 19 pre-owned Honda Pilots sitting around and you want to trade yours in, they won't rush to give you top dollar. But if they're short on inventory, they'll likely pay more because they know buyers are waiting.

Break-even: Many think trading in a car when you still owe money is not advisable. But if you play your cards right, it can work out great. If demand spikes and your trade-in value comes close to or even exceeds what you owe on it, that's a golden opportunity.

Feeding the Beast: With gas prices rising, filling up your tank isn't getting any cheaper. Maybe that big SUV isn't necessary anymore. Trading for something with better fuel efficiency could save you some serious cash right now.

When these factors line up just right, you've hit the right time to trade in your vehicle.

When to Upgrade?

It's worth considering getting a new car so you can enjoy all the latest automotive features available. Getting a newer model can also ease your mind regarding safety. While deciding when to upgrade is totally up to you, here are some signs that it might be time to upgrade your car:

• Your current car is almost 15 years old.
• You're spending thousands on repairs each year.
• Fueling up feels like breaking the bank.
• Your car doesn't have the latest safety tech.
• Finding parts is becoming a hassle.
• Your car is outdated, unreliable, and not that comfortable anymore.

Visit Berglund of Bedford GMC to Learn More

There's a prime time to trade in and upgrade your vehicle, and you can take advantage of it. Find out when that perfect moment is for you and your ride to maximize the value of your sedan, truck, or SUV for your next purchase.

Are you curious about your car's trade-in value right now? Berglund of Bedford GMC has a useful "Value Your Trade" tool on its website. You can also call us to speak to one of our finance experts in Bedford, VA.