The Best Time to Trade in Your Vehicle in Fort Lupton, CO

What’s the Best Time to Trade Your Vehicle?

If the latest innovations in the automotive world are making you look at trading in your current vehicle, you’re not alone. Most drivers who purchase a new vehicle continue to drive it for up to eight years, though some choose to upgrade closer to the five-year mark. Brands like Chevrolet keep their models modern with over-the-air software updates, but after five to eight years, there may be features your vehicle doesn’t have the hardware for. If one of the many new Chevy features has enticed you to upgrade, you may be tempted to trade in your vehicle. The answer to whether trading in your vehicle is a good idea depends on several factors, including the age, mileage, and condition of your current vehicle and any financial obligations related to it. Let's explore all the things you should consider before deciding.

How Much Is Your Car Worth?

You’ve probably heard that a new vehicle depreciates the moment you drive it off the lot, and this is true. The first two to three years of a vehicle’s lifespan see the steepest depreciation rate. The rate of depreciation slows down significantly after its third year off the lot. Before that, it’s unlikely for car owners to recoup their investment, especially if they’ve financed the vehicle. During the first two years of ownership, trading it in will likely cause you to be upside down on your auto loan, which means that you owe more on the loan than the vehicle is currently worth. If you wait until the fourth or fifth year of ownership, when the depreciation rate has likely fallen to 10%, and you’ve either paid off the loan or a significant portion of it, a trade-in is likely to be far more advantageous to you. The average rates of depreciation are listed below:

• Immediate Depreciation – 15.50%
• First Year – 17.97%
• Second Year – 15.69%
• Third Year – 12.32%
• Fourth Year – 10%

How Many Miles Are on Your Odometer?

Another aspect that affects the value of your vehicle is mileage. The average American puts roughly 12,000 miles on their vehicle every year, and how closely the reading on your odometer adheres to that will affect how dealerships value your vehicle. If you have a short commute and don’t travel much, you may put fewer miles on your vehicle, which may mean that it is worth more than its years would indicate. However, the opposite is also true. If you happen to enjoy long road trips and you’ve racked up a significant number of miles, you’ll see the value of your vehicle go down.

How Well Have You Maintained Your Vehicle?

You can enter your vehicle's year, make, model, and mileage into our Value Your Trade tool to get a rough estimate of your vehicle’s worth. You’ll also be asked about the condition of your vehicle. It probably goes without saying that a well-maintained vehicle is worth more than one that’s missed a few maintenance visits. The results will provide you with a range of what you can expect for your vehicle. If you’ve decided to trade in a newer model that's in excellent condition, you can expect an offer that’s closer to the top of the range. Most models that are three or more years old will have minor cosmetic damage that may cause them to fall in the good or great category.

Making the Final Decision

The final decision about whether you should trade in your vehicle is ultimately dependent on your financial situation. If your vehicle’s value is more than you currently owe on your auto loan, and you are financially ready to take on a new car payment, getting the latest Chevrolet features may be worth it. While every situation is different, trading in a vehicle for less than you currently owe probably isn’t the best financial decision. At Yoder Chevrolet, we want our customers to be fully satisfied with their vehicle and their financing decisions. If you’re ready to trade in your vehicle, visit us, and our sales and finance team will help you complete the process and find a new model that will meet your needs.