How to Value a Trade-In Vehicle

Apr 23, 2015

One of the biggest mistakes people make when trading in a vehicle to purchase either a used or new vehicle from El Paso car dealers is not taking the time to find the value of their current vehicle. They put their entire trust into the dealer to give them a fair trade-in allowance. This is never a good idea, because you could end up getting far less than the vehicle is actually worth. It takes less than an hour to obtain an approximate value for your current vehicle using online resources like Kelley Blue Book and Edmunds.

Keep in mind, there are numerous factors which are used to establish the value for your current vehicle. It is common to obtain completely different values for your current vehicle from each online resource you use. Criteria used to value a vehicle include the condition of the vehicle, age of the vehicle, and current mileage. It can be difficult to be honest about the actual condition of your vehicle, as owners tend to be a bit biased, but be honest with yourself to obtain accurate results.

For instance, your vehicle could fall somewhere between good/average condition and very good/clean condition. In this case, look at the trade-in values for both conditions, and average those results to obtain an approximate value. If the good/average condition of your vehicle is $4,500, and the very good/clean condition value is $5,500, then the approximate value would be $5,000. ($4,500 + $5,500 = $10,000. $10,000 divided by 2 = $5,000).

What Is the Difference Between Trade-In and Private Sale and Dealer Retail Values?

There are up to three different values you can obtain from online resources. The trade-in value is how much you expect to receive from car dealers in El Paso. The private sale value is how much you could potentially sell the vehicle for if you sold it yourself rather than traded it in at the dealership. The dealer retail value is the average amount the same vehicle costs at local car dealers. Remember, the dealership wants to earn a profit on used vehicles, so they sell trade-ins for more money.

Is It Better to Sell the Vehicle Myself?

If the difference between the trade-in value and private sale value is at least $1,000, you may want to consider selling it yourself. However, it can take a few weeks or even months to find the right buyer. If you are able to wait, and sell the car before buying another one, you will have a larger down payment. In cases where you do not want to deal with selling the car yourself, trade it in at the dealer, instead.

After you value your trade-in online, we invite you to stop by Integrity Kia in El Paso and allow us to make an offer on your used vehicle towards the purchase of a used, certified pre-owned or new vehicle. Feel free to contact us at 915-856-2982 with any questions or for further assistance.