There comes a point when you either are not feeling your car anymore or you simply want an upgrade. In that case, you will want to trade-in your car so you can get some money to purchase your desired car. But wait, how do you know the perfect time to trade-in your car so you can get the best bang for your buck? If I wait longer, won’t my trade-in value be worse? Let us explain.
It is true that the longer you wait to trade-in your vehicle, the less it is worth, but the more you wait, the more value you get out of that car. Your car depreciates less and less as the years go by. It is worse to trade-in your car less than 3 years after purchasing it because your car is depreciating at the fastest rate by then. So in reality, you want to trade-in your car to when it becomes cost effective, not necessarily where you get the most money out of your car immediately. The worst thing you can do is trading in a 2018 car for a 2019 car because you just want a newer car unless a dealership offers a deal like that (not many do, if at all). You might even want to use your trade-in money for a used car that is 2-4 years old because of that car’s trade-in value, but if you want a new car, we are not here to discourage you because that’s what every one wants; you get to enjoy a new car and have it last longer without worrying about the previous owner mistreating it.
The last factor that comes into play is what you want. Maybe you do want a new car every year or you bought a car that didn’t impress in the long-run, so in that case, just pursue your wants (as long as they are economically viable). We are just here to keep you informed. For most people, they want to find a balance between enjoying their vehicle, but also getting good money on its return. Maintain your car (check our blog on this), try not to crash it, enjoy it for 5+ years, and then trade it in. Its no problem.