The length of time to wait before you trade in your vehicle depends completely on the status of your current auto loan.
Although there is no set time frame a consumer must follow, most experts agree that you should wait until your car has equity before you decide to trade it in for a newer car.
Factors That Affect Your Trade-In
Finding the right time to trade in your car can be tricky since your car depreciation rate will affect the value of the vehicle over time. Depreciation is constant, thus making it the biggest factor that can affect your trade-in.
If you purchased your current car new, then the car has already depreciated significantly the moment you drove off of the auto dealerships lot.
After the first year, the depreciation rate will slowly begin to steady. Here are some other factors that will affect your potential trade-in:
Car Age – The age and mileage of a vehicle are important for resale purposes. If your car is relatively new with lower miles, you should get a better price for it during a trade-in.
Cash Value – Do you know how much your car is worth right now? You can use sites like Kelly Blue Book to help determine the value of your vehicle
Equity Stake – Last but not least, is the equity that you own in your vehicle. You can find out your equity in a car by taking the cars current cash value and subtracting the outstanding loan balance form it.
One of the best ways to find the highest trade-in value for your car is to take it to every dealership in your area. Stop by and ask for an appraisal to see how much they would offer you on a trade in.
Be sure to write down the names of those employees who provide the quote and how much it was for.
Trading in your car for a newer one can be a hassle for most. If you are looking to buy a new car but have less than perfect credit, CrediReady can help.
Our nationwide network of trusted dealers and verified lenders work with buyers in all credit situations. Take a moment to fill out our free no-obligation loan inquiry form and start shopping for your dream car today!