Car Trade-In Value Estimator
Excellent (Like New)
Good (Minor Wear)
Fair (Mechanical/Cosmetic Issues)
Poor (Major Issues)
Sedan/Compact
SUV/Crossover
Truck/Pickup
Luxury Sedan
Estimated Trade-In Range
$0
How Trade-In Values are Calculated
Understanding your car's trade-in value is essential before visiting a dealership. While the Kelley Blue Book (KBB) provides the gold standard for pricing, several core factors determine what a dealer will actually offer you for your vehicle.
Key Factors Influencing Your Offer
- Depreciation: Most vehicles lose 20% of their value in the first year and roughly 15% each year thereafter. Luxury vehicles often depreciate faster than economy brands or trucks.
- Mileage: The industry average is roughly 12,000 to 15,000 miles per year. If your mileage is significantly higher, expect a deduction in value. Conversely, "low mileage" vehicles command a premium.
- Vehicle Condition: Only about 3% of used cars fall into the "Excellent" category. Most well-maintained cars are "Good." Dealers look for reconditioning costs, such as new tires, dent repair, or interior cleaning, which they subtract from your offer.
- Local Demand: Convertibles sell better in the summer and in sunnier climates, while 4WD trucks and SUVs carry higher trade-in values in snowy regions.
Example Calculation
Imagine a 3-year-old SUV that originally cost $40,000. After 3 years of standard depreciation (approx. 40% total loss), the base value might be $24,000. If the mileage is high (e.g., 60,000 miles), a dealer might deduct another $2,000. If the condition is "Fair" rather than "Good," another 15% might be shaved off, resulting in a trade-in offer of roughly $18,700.
Trade-In vs. Private Party Value
Always remember that Trade-In Value is lower than Private Party Value. The trade-in price accounts for the convenience of selling instantly and the tax credit many states offer when trading in toward a new purchase. The dealer must also leave room for profit and reconditioning costs when they put your car back on the lot.