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Is Now a Good Time to Trade in Your Car?

The car market has been on a roller coaster ride over the past few years. Whether you’re shopping at car dealers for new or used cars, values just keep changing, making it difficult to know which way is up. The good news is experts believe that the market will stabilize in 2023, but what about now? Should you trade in your car? Is it better to wait? The quick answer is it depends, but that’s not much help. Let’s take a closer look.

Used Car Prices are Dropping

A few years ago, and even in 2022, trade-in values were at an all-time high, with the average price for a used vehicle peaking at about $31,000. But, depending on how you look at it, the good news or the bad news is that trade-in values are lower than they were a few years ago. This is good news because it makes buying a used vehicle more affordable, but the bad news is that you won’t get as much for your trade-in.

What You Need to Keep in Mind

There are a lot of pieces that make up the auto market, and the dynamics this month are different from just a few months ago. Used inventory was low, so used and new vehicle prices were high. This created an opportunity for car owners to make some money on their current vehicles. Now, inventory levels are recovering, but there are some concerns about interest rates, which has some buyers holding off on making large purchases. This is resulting in a volatile used car market, making it difficult to know when you should trade in your car.

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You Can Still Get Good Money for Some Used Cars

What it comes down to, in many cases, is the type of car you want to trade in. If you have a low-mileage late-model used car to trade in, you’re less likely to get a good trade-in value because car dealers can sell a brand-new one just as easily. What they are looking for now is higher mileage vehicles. There is a big market for these, which is not what the market normally dictates.

Is Now a Good Time to Trade in Your Car?

Now is as good a time as ever. While you won’t get as much as you would have during the height of the car shortages, used cars are still in demand, and the prices are currently rising. This, combined with the falling new car prices, means trade-in values are going up. But you still want to go in with both eyes open, especially if you haven’t paid off your old car yet.

How to Get the Most for Your Trade-In

Start by researching the book value of your car and then call some local car dealers or use their online cash offer tool to find out how much they will offer you for it. This brings the deal right to you without any obligation, and then you can choose the best offer.

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