Dealership Events, Money Matters, Under the Hood May 28, 2010
All right, here’s the situation: You’re in the market for a new vehicle. The car you’re currently driving … well, it’s not looking so hot. Should you fix it before you trade it in? Or just sell it as is? After speaking to one of our Used Car Managers, I got an answer: “It all depends on the vehicle.” Well, of course, but what does that really mean? Let’s take a look at a few mock examples to see how you can decide: Example #1: Patty drives a 1998 Chevy Lumina 4-door sedan which would appraise around $1500 if it was in average condition. Let’s say Patty’s Lumina has some transmission issues, costing approximately $1500-$2000 to replace. In this situation, it would make more sense for Patty to trade in her Lumina as is. If the cost to fix outweighs the cost of vehicle then trade that bad boy in! Example #2: Billy drives a 2007 Ford F150 Crew Cab XLT which would appraise around $20,000 if in average condition. Let’s say Billy’s F150 has some hail damage. Because the hail damage would qualify his truck as a below average vehicle, it would make more sense for Billy to fix the hail damage prior to trading it in. Otherwise, the appraiser will deduct the cost to fix from the appraisal price. If you’re looking to trade in a vehicle and it has some damage, get an estimate on how much it would to fix it so you can weigh your options. When trading in your last vehicle, did you get it fixed or not?