Get Your Used Car's Trade-In Value

Whether you're thinking of buying a car or not, learning the trade-in value of your used car can be valuable to check before you sell or trade in.

JD Power Vehicle Pricing and Values

JD Power trade-in values inherently differ from other providers, such as Kelley Blue Book (KBB) Trade-In Values and Black Book Trade-In Values. KBB and Black Book derive their trade-in values by extrapolating from prices paid at wholesale auctions. In contrast, JD Power produces JD Power trade-in values and other vehicle pricing based on more than 12 million retail vehicle transactions annually, analyzed with rigorous methodology and data science.

The JD Power trade-in value methodology is based on Power Information Network (PIN) data. It processes detailed transaction data in real-time from more than 16,000 dealerships across North America.

Each report generates more than 250 unique metrics to assess the valuation of any given vehicle, including make, model, trim, mileage, and condition. The PIN processes transaction data daily, providing highly accurate estimates in a timely manner.

Car shoppers using JD Power trade-in values benefit from more precise value estimates and better deals when trading in cars. You receive a fair and accurate assessment when you request a value estimate for your vehicle from JD Power.

Why Trade in Your Car

Trading your used car for a new car is an excellent way to get a vehicle with modern technology, greater safety, better fuel economy, and a warranty that will protect you from expensive repairs. It is also more convenient than going through the hassles of selling it yourself because you can get out of your car in one simple, easy, and fast process. There could even be sales tax savings benefits, depending on the laws in your state.

Depending on your state of residence, trading in your vehicle instead of selling it and buying another can result in lower sales taxes. In most cases, this is because you are only required to pay sales tax on the price difference between the new vehicle’s value and your trade-in value.

This table outlines the taxes owed with or without a trade-in and how much you can save in some states:

Factors That Affect Trade-In Value

Numerous factors affect the trade-in value of your car, including the make (brand), model, and model year. For example, some makes and models have a reputation for retaining their value, which increases their trade-in value.

Another factor is the condition of the vehicle itself. Does it look fresh and shiny, or is it showing its age? Cars with fewer miles can be worth more, and market demand also plays a role. If your vehicle is currently popular, it will be worth more to a dealer than if it isn't.

Other factors that can affect your vehicle’s trade-in value include:

• Car history: Vehicles with a clean history without major accidents or repairs get higher trade-in values. The fastest method to obtain a car history is to request a complete report using a Vehicle Identification Number (VIN) checking tool such as AutoCheck.
  
  These reports include information on past accidents, damage, service and repair records, manufacturer recalls, the number of past owners, and whether the vehicle is Certified Pre-Owned (CPO).
• Depreciation rates: As vehicles age, they lose value over time (depreciate) due to wear, tear, and new model releases. Depreciation affects the vehicle’s overall worth, including trade-in values.
  
  However, some makes and models depreciate more or less quickly than others, depending on their build quality, demand, and reputation.
• Regional differences: Certain vehicles are more in demand than others based on regional needs, such as fuel prices or local climate. For example, demand for all-wheel-drive vehicles is higher in colder climates because they are better suited for driving on snow and ice. Fuel-efficient vehicles get better trade-in values in areas where gas prices are higher.

Trade-In vs. Private Sale

Trading your car to a car dealer is simple, fast, and easy. Selling your car yourself is not, though you can get more for your vehicle from a private buyer than a dealer will give you in trade.

Selling your car yourself involves letting people know it's for sale, fielding phone calls and texts, and figuring out which potential buyers are worth meeting. Once you meet with a buyer, you face the inevitable test drive and price negotiation process. After that, you must determine how the buyer pays you safely and securely and how you transfer the title to the new owner.

Use the following tables to assess the potential benefits and drawbacks of trading your vehicle in versus selling it to a private party:

Preparing Your Car for Trade-In

Preparing your car for trade-in is a lot like preparing to go on a date — you want to look good and smell good, and so does your car.

With a trade-in, aesthetics mean a lot, so make sure your car is washed and polished on the outside and vacuumed and scrubbed on the inside. If your vehicle needs work, completing minor, inexpensive repairs makes sense. But if your car needs a lot of work, remember the car dealer taking in the trade can do those repairs cheaper than you can.

In addition, make sure you've gathered all relevant documents, especially the title, before heading to the dealer.

Cleaning and detailing your car before taking it to a dealership can improve your chances of receiving a better trade-in value. The process is straightforward and doesn’t need to be expensive. Even a basic DIY cleaning can make your car more appealing to a dealer. Follow this detailing checklist to get your car trade-in-ready:

• Remove all trash, clutter, accessories such as air fresheners or phone holders, and other personal items from the interior.
• Vacuum the entire interior space, including under the seats, in the trunk, inside the glove box, in the cupholders, and all other storage compartments.
• Clean all mats, carpets, seats, seatbelts, and other upholstery elements as appropriate for their material. For example, use a lint roller for cloth seats.
• Clean the console, dashboard, and hard surfaces with isopropyl alcohol wipes or oil-based soaps. You can also clean the inside of your windows with household glass cleaning products.
• Visit a car wash to clean the exterior. Consider a wash with gentle brushes and a wax finish to make your vehicle shine and look as good as possible.
• If you're washing your car at home, use a car-specific shampoo and a microfiber cloth to avoid scratches. Once the exterior is dry, wipe it down with a detailing spray to give it that extra polished look.