The Best Time to Trade in Your Vehicle

At some point, every car owner faces the big question of whether they should trade in their car or hang onto it a little longer. On average, most drivers keep their vehicles for about eight years before upgrading to something newer. And while brands like Buick and GMC keep their cars fresh with modern tech and over-the-air updates, the truth is that innovation always keeps going.

So, if you’ve been eyeing cutting-edge features like Super Cruise or a HUMMER EV with CrabWalk, maybe it’s time to make the switch. But how do you know if now is the right time to trade in your car? Let’s break it down.

The Depreciation Dilemma

Depreciation is a natural consequence of owning a vehicle. As soon as your car leaves the lot, its value starts to drop. According to Kelley Blue Book and Cox Automotive, depreciation follows a predictable pattern over the first four years:

• Off the lot: Down 15.5%
• Year 1: Another 17.97% gone
• Year 2: Drops by 15.69%
• Year 3: Slows to 12.32%
• Year 4: A more manageable 10%

If you want to maximize your trade-in value, timing is everything. Trading too early (say, within the first two years) often means your car’s value hasn’t caught up to what you owe -- leaving you with negative equity. On the flip side, waiting too long could mean trading in when your car’s value has bottomed out. The optimal time to trade in is after a few years when depreciation has slowed and you’ve built up some equity.

Mileage: More Than Just a Number

Mileage matters -- a lot. The average driver clocks about 12,000 miles per year. Dealerships may reduce your vehicle's trade-in value if its mileage exceeds expectations for its age. But if you’re on the lower end of the mileage spectrum, congratulations! You’ve just added a little extra to your car’s worth.

Condition Is Key

Your car’s condition is another major factor in its value. Dealerships will assess both its mechanical health and its looks. If you’ve stuck to the factory-recommended maintenance schedule and kept your ride in tip-top shape, your car will likely fall into the “excellent” category within its first three years. After five or six years, though, a few dings and scratches are inevitable, which might drop its rating to “good.” Still, a well-maintained car can fetch a solid trade-in value, even with a bit of wear and tear.

Timing Your Trade-In Like a Pro

Now that we’ve covered the basics, here’s a little insider tip: trade your car early in the year if you can. At the start of the year, your vehicle feels newer, and dealerships are eager to stock their lots with fresh inventory. It’s a win-win situation!

Of course, timing isn’t the only thing to consider. If your car’s value is higher than what you owe on it, trading in makes financial sense. But if you’re “upside down” on your loan (owe more than it’s worth), it might be better to wait until you’ve paid down more of the balance -- or risk rolling negative equity into your next loan.

Discuss Trade-In Options with Barker Buick GMC

Every trade-in situation is unique, and sometimes, it’s tough to make the call on your own. That’s where we come in. Swing by Barker Buick GMC, and our team will help you assess your car’s value, mileage, and condition to determine the best course of action. Plus, with tools like our Value Your Trade feature, you’ll have all the information you need to make an intelligent decision.

So, whether you’re ready to upgrade to the latest tech or just curious about your options, we’re here to help. Visit us today and find out if the road ahead includes a brand-new set of wheels!