When You Should and Shouldn’t Trade In Your Used Car

If you’re wondering, “Is it time to sell my car?” we encourage you to use the value your trade tool on our website to get an idea of how much you’ll get if you trade in your vehicle at our convenient location. Deciding when it’s wise to trade in your existing vehicle is tough, but luckily we’re here to help you out.

When you contact our used car dealership in Ann Arbor, MI, we’ll mention some factors you should consider as you try to decide if it’s time to trade in your automobile. Giving those things some thought will help you trade in your car at the time that’s most advantageous for you.

Repairs and Major Service Intervals

In general, it’s advisable to trade in your current vehicle if it needs repairs that exceed it’s value. Similarly, you may want to trade in your vehicle if it’s due for costly routine maintenance and you plan on buying one of the pre-owned cars in our inventory in the relatively near future. There’s little point in spending hundreds of dollars or more on maintenance if you plan on getting rid of your automobile in the foreseeable future.

On the other hand, you may want to hold onto your vehicle if it only needs minor repairs or some basic routine maintenance. If completing repairs and performing simple routine maintenance tasks will prolong the life of your car while you save for another one, you may want to get them taken care of and put off trading in your vehicle for a little while at least.

Sales Taxes

While some people will advise you to sell your car instead of trading it in, that’s not always the best move as it relates to sales taxes. The team at Next Mile wants you to know that many states only require you to pay taxes on the difference between the value of your trade-in and the cost of the other vehicle you purchase. If you sell your car in a private transaction, you’ll be on the hook for a larger tax bill.

Warranty and Mileage

Whether you’re interested in one of our used trucks or another body style, you’ll be well-served to trade in your existing car before your warranty expires or you hit another 10,000-mile increment. That’s because factory-backed cars and vehicles with lower mileage tend to command a higher trade-in value.