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Knowing when it is time to trade in your car and get a new one can be difficult. Timing your trade-in just right is part science, part art. But there are some signs that tell when it might be a good time. Here are five signs it is time to trade in your car for an upgrade.
Your car no longer meets your needs
That sporty two-door may have made sense when you were single, but if you have a growing family, a small car might not meet your needs anymore. If you have one child and another on the way, it's probably a sign that you need to trade in that new car for a minivan or SUV at a dealer like Milton Ruben Toyota. On the flip side, if your commute has gotten longer, you might want to trade in that gas-guzzling behemoth for a fuel-efficient small car.
Your car is in the price "sweet spot"
The best time to trade in your car is when it's not too old and not too new. Cars depreciate the most in their first three to four years, so trading in a very new car can mean you don't get as much relative to value. Conversely, cars start to lose trade-in value once they get to be seven or eight years old. Trading it in at year five or six is probably the best time.
Your car is in demand
Used cars can become in demand for a variety of reasons, and if yours is, it is a good time to trade. If you see ads seeking your model and year of car or if dealers contact you asking if you are interested in trading in your vehicle, those are signs that it's a good time to consider a trade.
There are great deals on new cars
Sometimes, the decision on trading your car has less to do with the timing of the trade than the deal you can get on a new car. If dealers are offering great deals on new cars that aren't normally available, it's a good time to consider upgrading.
Your car is failing
If your car needs a lot of work, it might make sense to trade it in for an upgrade. Though you won't get much money, you will get a new car out of the deal and won't have to make the pricey repairs.
These are just a few of the factors to consider when thinking about trading in your car for an upgrade. You may have other factors to consider as well.