How Do Dealerships Determine Trade-In Value?

When you’re starting your search for a new car around Newberg, there are a couple ways you can try to get the best possible price. You may know that dealerships like Lum's GMC offer a trade-in program that allows you to offset your new vehicle price, but how do dealerships determine trade-in value, and what does trade-in value mean? Learn more about the factors behind your trade-in value, so you’re prepared when shopping for a new car around McMinnville.

What Does Trade-In Value Mean?

When you’re looking to sell your current vehicle around Newberg to a dealership, the trade-in value is the dollar amount that they offer you for your vehicle. With this offer, you can choose to apply the amount towards the cost of your new vehicle, or take the cash offer and head home. Keep in mind that your trade-in value is negotiable based on your vehicle’s condition and additions.

Determining Trade-In Value

How dealerships determine trade-in value depends on many factors, but the trade-in value starts by understanding the market value. Sites like Kelley Blue Book or Edmunds are used to assign the market value, but similar to other markets for real estate or stocks, that value can fluctuate. While a market value can be established, it is rare for vehicles to have no damage or service required, so the trade-in value ends up being slightly less than market value. Dealers also need to consider the cost of reconditioning your car for resale, and many other factors including: 

• Options and Trim: What trim package do you have? Have you added any after-market equipment?
• Geographic Location: Are you selling a convertible in winter?
• Mileage: Does it have excessive mileage for its age?
• Damage/Accident History: Does your vehicle have dings and dents? Has it been stored in a garage or exposed to the elements? What was the quality of any repairs?
• Recalls: Has your car been recalled? What were the nature of the recalls, and have they all been addressed?

Maximizing Your Trade-In Value

Now that you know what your trade-in value means and the factors behind it, there are a couple ways you can get the best trade-in value around Hillsboro. Since you’re trying to present the best picture possible, take the time to have your car cleaned and detailed, and address any minor repairs like windshield damage or minor engine issues before an appraisal. Also, be sure to highlight any enhancements or additional accessories you’ve accumulated over the years. 

Sell Your Vehicle with Lum's GMC! 

Now that you understand the factors behind your trade-in value, reach out to the team at Lum's GMC to schedule an appraisal for your trade-in. If you’re interested in learning more about your trade-in possibilities, read about how to trade-in a car that’s not paid off.