Getting the Most Value for Your Old Car with a Trade-In

Are you looking to upgrade your car and interested in trading in your old car? The used car market is booming, and you may be surprised at what you can get for it. A trade-in is a great way to finance a new, used vehicle, and the process is easy—we’ll assess the value of your car, give you an offer, and if you accept it, we’ll apply it towards your new one! Simply pay the balance outright or finance with a loan and drive your upgraded vehicle home! In this post, we provide helpful tips on how to maximize the value of your old car. 

Factors Influencing the Trade-In Value

There are several factors that will influence how much you’ll get for your car. 

Age and Model of the Car

The age of a car is usually a determining factor when it comes to price. While older vehicles tend to be priced lower, this can also depend on the vehicle make and model; luxury brands have a tendency to hold their value over time due to the higher quality of their build. Newer cars that still have a manufacturer’s warranty in place will also fetch a higher price. 

The Mileage and Overall Condition

One important feature that the dealer will assess is the mileage of your car. Higher values reflect high use and wear and tear, affecting the price you can get. A common gauge that mechanics use for assessing an acceptable mileage is 12,000 km each year. If your car is 10 years old, a mileage of 120,000 km or less is ideal, and anything over suggests overuse and may diminish its value. 

The dealer will also consider the overall condition of the car. Are there dents, paint chips, and scratches on the body? Does the car look shoddy on the inside? 

How to Prepare Your Car for Trade-In

Before you present your vehicle for evaluation, we recommend taking steps to upgrade the look of your car. A clean and well-maintained vehicle creates a good impression for the dealer and shows you take care of your car. 

Scrub Up the Interior

Thoroughly vacuum the interior of your car, removing mats and cleaning deep below the seats. Wipe off surfaces such as the dashboard, console, and the inside frame of the car and use specialized cleaning products to polish up plastic and condition leather surfaces. 

Make Your Exterior Shine

Give your car a thorough wash, paying particular attention to the windows. Once the car is dry, wax the body of the car to give it a new car shine! Ensure that all four hubcaps are clean, and invest in a specialized tire cleaning product that will make your tires look brand new. 

Book a Detailing Appointment

If you’re too busy to spend time cleaning up your car, or you don’t have the right products to do so, you might want to consider professional detailing. Professional detailers will meticulously clean and polish the inside and outside of your car so you can create a great impression when you sell.

Keep Repair and Maintenance Documents

It’s a well-known fact that well-maintained cars can run perfectly for many years. Cars that have detailed service records are viewed favourably by car dealers and buyers, and that adds value to the price of your car. 

Research Your Car's Value

If you’re curious about your car’s trade-in value, there are plenty of tools you can use to get an idea of your vehicle’s price. 

Check Out Kelley Blue Book 

With Kelley Blue Book, you can get an online estimate of what your car might be worth, by either inputting your vehicle identification number (VIN) or the make, model and year of the car. You’ll also need to enter the mileage so you can get a more accurate assessment of its value. Alternatively, use Insta Auto Solutions’ car valuation tool and get your free valuation today!

Online Research

It also helps to research your car by finding similar listings and comparing them on dealer sites. Many of these websites also provide details of the condition of the car and include interior and exterior photos so you can get a good feel for the car. View the CARFAX report to find information about accidents, vehicle history, and service records to see how your car compares. 

Financing Your New Car

Once you’ve accepted the offer for trade-in, you’ll have to pay the balance to purchase your new car. You can pay the balance outright or finance the balance with a loan. Many car dealerships provide financing onsite, so you can complete this step in one visit. 

What Do You Need to Finance Your Car? 

When financing your car, you’ll need to provide the lender with several pieces of key information.

Proof of Identity

They’ll need to have proof of identity and address so you can provide your Alberta Driver’s License with your current address listed. 

Proof of Income

The lender will also need to know how much you earn to assess your ability to pay back the auto loan. You can provide a letter of employment with your annual salary specified or several paystubs to show your monthly income. Bank statements may also be helpful in proving your ability to pay back your loan. 

Loan Application Process

Your advisor will start the loan application process, and an important part of this is the credit check. Credit checks are routinely carried out when taking out a loan so the lender can assess your experience with credit. They need to feel a sense of trust that you will repay your loan before they approve your application for credit. 

Why Do Lenders Do Credit Checks?

Credit checks provide lenders with the following information:

• Your history with credit and how long you’ve been using it.

• Your current sources of credit include loans, mortgages, credit cards and utilities.

• Your payment record, including any missed or late payments. 

• Your credit score as an indicator of your overall credit health.

Can I Get a Car Loan with a Low Credit Score? 

If you have bad credit or no credit history, it’s still possible to get financing for your car. Bad credit car loans are designed for people with limited credit, such as newcomers to Canada and students. They’re also ideal for individuals who have bad credit due to missed or late payments and bankruptcy. 

Much like a regular loan, you still have to make monthly payments on your loan for a specified term, but the main difference between regular loans and bad credit car loans is the amount of interest you have to pay.

How Much Is the Interest on a Bad Credit Car Loan? 

The main point of a credit score is so your lender can understand more about your relationship with money. If you have a good or excellent credit score, it means that you manage your credit well and have a record of paying your bills on time. A poor credit score may be the result of missed or late payments. 

Your credit score, among other factors, will determine the level of interest you’ll pay on your loan. If you are viewed as a risky lender (limited credit history or evidence of missed payments), your lender will generally charge a higher interest rate, with rates as high as 40-50%. 

How Taking Care Of Your Car Helps Hold the Value

It pays to take care of a used car, and that fact becomes clear when you’re in the position of trying to sell it. Take it in for regular servicing, and bear in mind that upgrades, such as new tires and brakes, may help you get a premium price for your car. If you foresee only driving your new car for a year or two, we recommend that you maintain it well so it’s more likely to retain its value at the time when you’re ready to sell. 

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