How Is Trade-In Value Determined?
When you’re ready to buy a new car, one option is to trade in your old one to cover part of the new car’s price. If you’re planning to get rid of your old car anyway, this can be an easy, convenient way to do so. In addition to getting the price taken off of your new purchase, you also have nothing to worry about in terms of liability because the dealer takes care of everything. However, the trade-in value of your car will often be slightly lower than the value of reselling the car on your own, but this difference in value is worth it to many for the sake of convenience.
The trade-in value itself depends on several factors—the same type of factors one would consider when buying a used car. These include make and model, year, mileage, and condition. If you want to figure out what your trade-in value will be, you should start by getting an idea of the car’s market value. You can do this by using a resource like Kelley Blue Book where you will enter the details about your car’s condition. This resource can give you a good idea of what people are paying for a car similar to yours across the board and should give you an idea of what to expect as a trade-in value as well.
To learn more about trade-in value and other financial questions, call us at Larry Jay Mitsubishi.