How To Determine Your Trade-In Value

Your trade-in value is key information, but getting a detailed trade-in value is often harder than it needs to be. Finding an accurate and reliable appraisal tool doesn't have to be so difficult. 

Start Your Research

Research is going to be your best friend here. Dealers use the current market value of your particular make and model to determine the value of your car. So knowing the same information as them is going to give you a competitive edge to get the best value for your trade-in. 

Start by searching what your model is selling for. When researching, make sure you are as specific as possible. Make, model, trim package, mileage, year, and even color are all important. If your current vehicle has any special features or added options, ensure you check that as well. 

Location is also important. The region, environment, population, and local specialties will have an effect on overall value. A congested area where there is a lot of similar cars will force prices down. Places like Detroit, for example, will have a lower market value on American cars because of the volume of vehicles in the area.

AWD and heated seats also aren't as useful in southern states as they are up north. Similarly, a convertible coupe is going to be harder for dealers to sell in northern climates than down south, and may catch a lower trade-in value in those regions. 

Estimating Trade-In Value

A good rule of thumb is trade-in value is around $2,000-$4,000 less than fair market value. The dealer is technically “buying” your trade-in and eventually also has to sell it. If they can’t see a large enough profit margin between your trade-in value and what they can list the car for, they won’t take the loss. It's simply business. 

Reduce any maintenance, repairs, or reconditioning costs the dealer will have to spend. This ranges, depending on the condition of your vehicle. Things like tires, brakes, oil changes, paint repair, body repair, etc all start to add up. You may think your vehicle is perfect, but once it gets put under a microscope, some repair costs may start to show up, so be ready for that. If you have major damage or mechanical repairs, try and get an estimate for the costs before taking it to the dealer. Know the dealer's labor fees and estimated time for the repair. If the difference is significant, consider repairing the vehicle yourself before trading in.

All in all, your trade-in value ends up being roughly $2,000-$4,000 less than market value, depending on the condition of the vehicle, make, model, type of vehicle, and more. 

Online Appraisal Tools 

The best step to checking trade-in value is an online appraiser tool. These are web pages that use algorithms and data to appraise your vehicle's value to a fair and accurate estimate. Many dealers depend on these estimate tools for their trade-in appraisal, so knowing the value is an important part of your research.

When entering the information for your vehicle, ensure that you are exact on all options and features. Just because you put the trim level in, does not mean you all the features your car is equipped with have been checked. Packages, options, and add-ons are important too, and can increase your car’s value by thousands. 

Why is it important?

Walking into the dealer with the knowledge on hand and ready to go is going to keep you ahead of the game. Learning your cars worthwhile sitting trying to make a deal is only going to result in you having to completely recalculate your entire plan. It doesn’t have to be that hard!