Trading in your car when purchasing a new one is a popular option for South African drivers, but understanding how trade-in values are determined can help you get the best deal. With a little preparation, you can maximize the value of your current vehicle and reduce the cost of your next purchase.

Click here to find the perfect vehicle for your needs

What determines trade-in value?

Trade-in values are influenced by several factors, including:

  1. Vehicle condition: Dealers assess the physical and mechanical state of the car. A well-maintained vehicle with minimal wear and tear will fetch a higher price.
  2. Mileage: Dealers generally prefer lower mileage, as it indicates less wear on the engine and components.
  3. Market demand: Popular models or brands with high resale demand tend to have better trade-in values.
  4. Service history: A full-service history proves the car has been regularly maintained, adding to its value.
  5. Age of the car: Newer vehicles typically have higher trade-in values, as they are still within their prime usability.

Tips to maximize your trade-in value

  1. Clean and repair: Before taking your car to the dealership, clean it inside and out. Fix minor issues such as scratches, dents, or broken lights. Small improvements can make a significant difference in perceived value.
  2. Keep a detailed service record: A complete service history demonstrates that the car has been well looked after. Ensure you have all relevant documentation ready to show the dealer.
  3. Research market value: Use online tools like AutoTrader or WeBuyCars to estimate your car’s market value. This knowledge will give you a stronger position when negotiating.
  4. Shop around: Don’t settle for the first offer. Visit multiple dealerships to compare trade-in valuations. Some dealers may offer better incentives or discounts on your new car in exchange for your trade-in.
  5. Timing matters: Trade in your car when demand is high. For example, SUVs and bakkies may fetch higher prices before the holiday season when buyers look for travel-friendly vehicles.

Get the best insurance quote for your vehicle here

While maximizing your trade-in value is important, be prepared for dealers to offer slightly less than private sale prices. This is because dealerships need to account for reconditioning costs and profit margins.

By understanding the factors that influence trade-in values and taking proactive steps to present your car in its best light, you can secure a fair deal and reduce the financial strain of purchasing your next vehicle.

Mpho Mahlangu, in association with 

proudly CHANGECARS