6 factors affecting the trade-in value of your vehicle

Are you starting to think about changing your vehicle? The price you're prepared to pay will of course depend on how much you're offered in exchange for your current vehicle. We've already given you some tips on how to increase your trade-in value, but it would be a good idea to take a look at the factors that influence this value in the first place.

Here are six of the main ones we'd like to focus on...

1. Age

With the exception of exceptional and collector vehicles, which appreciate in value like fine wine, the age of your vehicle naturally has a negative impact on its exchange value. In general, models five years old or less are not so much affected, as demand remains strong, but older models are more affected, especially if more than one generation separates them from their current equivalents.

2. Mileage

A vehicle may be 7 or 8 years old but has been driven very little, which normally suggests low wear and tear on parts. On the other hand, when the mileage is higher, potential buyers will be more cautious, which lowers the exchange value. Of course, there are exceptions, such as when we're talking about models with a reputation for durability or which have been well-maintained, which brings us to the next points.

3. Condition

A vehicle that's been well maintained according to the manufacturer's recommendations will always sell better than one that's been neglected and shows obvious signs of wear, rust or weakness. We're talking here about the bodywork, plastics, seats and carpet, but also components that are harder to see, such as the suspension, tires or brakes.

In short, a " ready to drive " vehicle is more attractive to buyers than one on which you have to spend hundreds or even thousands of dollars on maintenance and repairs. And of course, if your vehicle has already been in an accident, even after an upgrade, its value will plummet.

4. Equipment, including engine type

The presence of the latest technology and a host of conveniences on board a vehicle definitely has a positive impact on its exchange value. It's also important to understand that consumers' needs evolve quickly and that certain items are now taken for granted in their minds, such as air conditioning, heated front seats or Bluetooth connectivity. If yours doesn't have any of these, good luck.

Similarly, the type of engine under the hood has an influence. Diesel-powered engines have fallen out of favor. Conversely, fuel-efficient engines and hybrid vehicles are in good demand, especially as prices at the pump start to rise again.

5. Make and model

Some makes and models are more highly prized than others, for a variety of reasons, which means they retain a higher exchange value. Toyota vehicles are a good example, with their above-average quality and reliability. On the Jeep side, nobody rushes out to buy a Compass, but it's a different story with the Wrangler, an iconic model whose aura and capabilities still attract enthusiasts.

6. Supply and demand

Finally, regardless of the make or model of your vehicle, you need to be aware of the reality of the market when it comes to selling it - a lesson we can certainly learn from the pandemic. If there are many models similar to yours in the classified ads and used car yards, especially in your immediate area, you won't get as much exchange value as if you were selling a rarer or more coveted vehicle.