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WHEN IS THE VERY BEST TIME TO TRADE MY CAR IN FOR A NEW ONE?
I am often asked by fellow community members, “When is the best time to trade in my car?” While some folks are “Need a car that won’t ever break down” people and others are more of a “drive it until the wheels fall off,” personal preference plays a huge part in when the right time is for you. That said, this April’s message focuses on the money side of that equation to help you decide.
Think of your current car as a pile of money that slowly erodes over time. As vehicles age they depreciate approximately at fifteen cents per mile and one thousand five hundred dollars per year after the initial depreciation in value that happens when a new car becomes a used one. The number one factor in determining what your car is worth is what someone can and/or will pay for it. From this stand point, it is very predictable to see why a used car is worth less than a new one and why there are two key points that most dramatically affect how big of a pile of money you can expect in exchange for your car.
The first key point is 80,000 miles. Your car is worth substantially more at 79,999 miles than 80,000 miles. The reason for this is that only 50 percent of used car buyers have the credit to buy a car with 80,000 miles on it by current lending standards. That’s right, after your car hits 80k you have lost half of the buyers in the current market!
The second key point is 100,000 miles. For the same reasons, a car with 99,999 miles on it is worth a substantial amount more because only five percent of current car buyers have the credit to purchase your vehicle once it crosses 100,000 miles.
Of course, this method of choosing when to trade doesn’t take into consideration the coveted “cash” buyers, but in my experience cash buyers make up roughly seven percent of the total sales we see at Greiner Buick GMC in any given month. So in addition to factors like; is this the right time, can I afford it, how much is this car going to cost me to keep it running, does my car fit my current needs, how many years left does it have, do I like it and what are the benefits of changing it up?- add the pile of money approach to see what is truly best for you.
I hope this information was helpful in helping you better manage your current vehicle like the pile of money it really is and I look forward to serving all of you in the future. Thanks again for all your support…. It means the world to me, truly!
As always you have a friend in the Car Business;