You might be planning to trade in your old car for several reasons. You might want to upgrade to a bigger and newer model that better suits your lifestyle. Or you may be considering lowering your monthly auto loan payments by switching to a smaller and more economical model. No matter the reason, exchanging your old vehicle for another is an excellent choice in many situations.
When buying new or used cars in Halifax, you need to ensure that you get the maximum value for your old vehicle. Figuring out the trade-in value of your car in Canada can feel complicated. But we can simplify it for you. This guide provides you with a clear picture of everything you need to know to maximize the trade-in value of your old vehicle.
What Is Trade-In Value?
The trade-in value of your car represents the best price a dealer is willing to pay for your old car. When you trade in an old car for a newer model, the dealer might pay the trade-in value in cash or offer to deduct the price from the purchase value of your new vehicle. Once you agree to the trade-in, the dealer resells your old car. They can sell it to the lot or auction it off to other interested buyers.
How Is the Trade-In Value of My Car Determined?
Although there are no pre-set rules, you can expect Canadian car dealerships to consider the following factors to arrive at the trade-in value of your vehicle:
- The year, make, and model
- The popularity of the model
- The extra features, accessories, and add-ons
- The number of kilometres you have on the odometer
- The accident and crash history
- Overall maintenance and repair history
- Wear and tear on both the interior and exterior
- The current selling price of similar models
Besides these factors, the dealer also considers the vehicle’s reconditioning cost. If the car is spotless and well-maintained with minimal repairs, the reconditioning cost is minimal. Therefore, the dealer will likely offer you a better price during the trade-in.
How Do I Calculate the Trade-In Value of My Car?
While arriving at a specific figure is difficult, you can get a ballpark figure by doing some research. Use an online car financing calculator to search your vehicle’s current selling price =. You can also connect with used car dealers in Halifax and inquire how much they are willing to pay for your old car.
Tips to Maximize the Trade-In Value of Your Vehicle
Here are a few tips for maximizing the trade-in value of your vehicle:
- Be regular with car maintenance: Servicing your vehicle helps you enjoy a better trade-in value during the exchange.
- Do a deep clean of the interior and exterior: A dirty and rundown car will not likely fetch better returns. Take the time to clean and wash your car and get it looking its best.
- Make necessary repairs: Consider investing a little money in repairs to enjoy a higher trade-in value later.
Finally, remember that the trade-in value isn’t fixed. You can negotiate with the dealer to get a better deal. The dealer might be willing to give you extra money for your old car if you agree to purchase an extended warranty or accessories for your new vehicle.
Get a no-obligation assessment of your trade-in value below, or fill out this form to talk with one of our agents about your financing options: