When you’re in the market for a new car, you may be wondering how dealerships value trade ins. After all, if you’re going to trade in your current vehicle, you want to make sure you’re getting a fair price for it.
Many factors go into determining the value of a trade in. Here are a few of the most important.
- Age and Condition of Vehicle
One of the biggest factors that dealerships consider when valuing a trade in is the age and condition of the vehicle. If your car is relatively new and in good condition, it will likely be worth more than an older car that had been heavily used.
- Market Demand
Another important factor that dealerships consider is the market demand for the type of vehicle you’re trading in.
Mileage is another factor that can impact the value of your trade. Cars with lower mileage are generally worth more than those with higher mileage, as they have less wear and tear on the engine and other components.
- Service History
Dealerships also consider the service history of your vehicle when valuing a trade in. If you have kept up with the regular maintenance and repairs, your car may be worth more than a similar car that has been neglected.
Typically, dealerships will use a combination of all of the factors listed above, as well as information from industry sources such as Blackbook and other pricing guides.
We have included a short video of our General Manager, Larry Cain, appraising a vehicle to give you an idea of exactly what we look at when appraising a vehicle at Auto Direct.