When Is the Best Time to Trade In a Car?

According to Edmunds data, the best time to trade in a car is within the first two quarters of the year, when used car values tend to trend higher. That's the ideal situation, but life is unpredictable, and you may need a car later in the year. Does that mean you're out of luck? Not necessarily. There are many other factors that affect trade-in values, such as the current market conditions, the age of the vehicle, mileage and even the brand of vehicle itself. With this in mind, here are answers to common questions people may have about the timing of their trade-in.

Note: A general rule to be aware of is that you're going to get less money trading in your car than selling it yourself. That's because the dealership needs to factor in reconditioning costs and also wants to make a profit on the vehicle. These factors impact the trade-in price they are willing to offer. Also, the best time to trade in your car may not coincide with the best time to buy a new car. Being aware of these factors can help you set expectations for the price you're offered at the dealership and help you decide if it's the best time to trade in a car.

If you're curious about how much your car is potentially worth, you can get an instant trade-in value here on Edmunds. 

Jump to:
Best time to trade in a car you still owe on
Trade-in market conditions
Best mileage level for a trade-in
Best month/time of year to trade in
Best age of the car to trade in
Best point in the loan to trade in
What vehicles do best/worst as a trade-in?

Best time to trade in a car you still owe on

The best time to trade in a car you still owe on is dependent on multiple factors. Generally, if the value of your vehicle is greater than the amount you owe on it, you're probably in good shape financially to trade it in. Keep in mind, though, that you need to consider how much you put down on your current car, what your current interest rate is versus what the new loan's interest rate will be, and the total cost and length of that new loan.

If you do still owe money on your car loan, it is still possible to trade it in, but there are a few extra steps to consider. Read "How to Sell a Car With a Loan" for a step-by-step guide. 

You can use Edmunds' online appraisal tool to get an idea of your car's current value. A car's value generally declines as it gets older, but not all cars and trucks depreciate at the same rate. A used vehicle's resale value is affected by its popularity with buyers, the number of miles on its odometer, and current market conditions. In nearly all cases, its value will drop the longer you keep it.

Trade-in market conditions

Current market conditions have shaken up some traditionally held beliefs. According to Ivan Drury, director of insights at Edmunds, average transaction prices for 3-year-old used vehicles are rising and are considerably higher today than forecasts predicted when those vehicles were sold or leased new.

"Elevated resale values could offer an unexpected opportunity to exit a regretted purchase with fewer financial consequences or even offset rising costs on their next vehicle," Drury wrote.

Today's turbulent used car market and uncertainty over tariffs and new-car pricing mean resale values are difficult to predict. If you have a car that's currently in high demand and you want to replace it with something new, now might be a good time to trade it in. In addition to residual values, there are other, sometimes unusual, factors to consider.

"For shoppers with trade-ins, country of assembly — usually a nonfactor — now plays an unexpected and potentially significant factor in a vehicle's resale value," according to Drury. "It's a good idea to get trade-in offers from multiple dealerships, especially if your vehicle was leased in lower volumes and is now built overseas."

Best mileage level for a trade-in

The average American driver puts about 12,000 to 15,000 miles on their car every year. Some owners keep one eye on their odometer at all times, trying not to put too many miles on their car so they won't hurt its value when the time comes to trade it in. But a car's mileage is just one factor that goes into determining its resale value.

Generally speaking, the value of your car drops slightly with every mile you add. But these days, there is no major drop-off at any certain milestone. Even the 100,000-mile mark is not a value-killer as long as the car is in good shape. The truth is, there is no magic number of miles to reach before trading in your used car.

A vehicle's model year often matters more than its mileage. According to Edmunds' data, the average sales price of 3-year-old used vehicles was $30,522 in the first quarter of 2025, up 2.3% from $29,844 a year ago. The gap between used and new car prices came in under $17K for the first time since 2022. 

Best month/time of year to trade in

Buyers often focus on the best time of year to buy a new car, whether it's around holiday discounts or end-of-year clearances. Trade-ins can be an afterthought in this line of thinking.

If your timing is flexible, some times are better than others to trade in a car. In the past, values have been higher in the first two quarters of the year, with larger drops in the final two quarters. Obviously, the longer you have a car, the more it will depreciate. But there are other valid reasons that keep values afloat early in the year.

First, there are more buyers in the market early in the year, and dealerships need more cars to feed the demand. Also, a used car feels newer when it is eight or 10 months away from turning a model year older rather than just two or four months away. These are good things to keep in mind when you're looking to either time your trade-in or negotiate with a salesperson in March instead of October.

You may also get a better deal on your trade-in if you're shopping at the end of the month, the end of the quarter, or the end of the year. If the salesperson you're working with is trying hard to reach a sales goal, they may find a little extra wiggle room to entice you to sign on the dotted line. Remember, though, that the price you are quoted for the car you're trading in is only one part of the overall cost of the transaction. Pay close attention to every part of a sales contract and remember that many costs can be negotiated.

Best age of the car to trade in

Again, newer is better. Your car will hold more value the more recent its model year. As with mileage figures, there typically isn't one particular age when a car's value plummets. It will decline gradually but steadily. Not too long ago, by the time a car reached about 5 years old, its residual value had likely dropped significantly. In recent years, however, buyers have shown a willingness to keep their current cars longer than before. According to Drury, the average age of trade-ins was 7.6 years in the first quarter of 2025. That's up from 7.3 years a year ago and the oldest trade-in age Edmunds has recorded since the first quarter of 2019.

As owners hold on to their cars longer, the average age of used cars listed for sale also rises. The average age of used vehicles listed on Edmunds rose from 5.7 years old in March 2024 to 6.1 years old in March 2025.

At some point (which can vary from model to model), the decline in a used car's value slows and begins to settle. So, if you didn't trade in during the first five years of ownership, there's not much reason to rush to do it before the car turns 8 to 10 years old unless you are concerned about reliability and your vehicle is no longer covered under any sort of warranty. You'll get about the same amount of money back as long as the mileage doesn't skyrocket, so consider taking that extra time to build your savings for a down payment on something you really want.

Best point in the loan to trade in

If you took out a loan to buy the car, the best time to trade it in is a subjective decision that will differ for each person. But there is, objectively, a worst time.

It's not a good financial decision to trade in your vehicle if you still have a balance on the loan and have not yet earned any equity. This means you still owe more money than the car is actually worth and are underwater on the loan. With the average length of car loans increasing in recent years, this scenario is becoming more and more common. Learn more by reading our article on how to deal with underwater loans. If you trade in the vehicle for another at this point, you'll also be underwater on that loan, exacerbating the problem.

Instead, contact your creditor to find out how much you owe on the loan. Compare that to the estimated value of your car on a trade-in, and when its value is higher than the amount you owe, consider that a green light. Now, you'll have something to put toward buying a new vehicle. But it will be up to you to decide when you can get the most return, keeping in mind that your car declines in value with each passing year and each additional mile.

What vehicles do best/worst as a trade-in?

It's difficult to predict what will happen in the used car market in the aftermath of the pandemic. But certain trends are likely to hold true. Generally, you can count on the following:

• SUVs keep their value better than sedans.
• Lexus has the highest resale value among luxury brands, and Toyota has the highest resale value among non-luxury brands.
• Specialized vehicles, such as Jeep off-roaders or Porsche sports cars, perform better than most.
• Popular in-demand vehicles such as the Honda CR-V and Toyota RAV4 tend to retain their value well.
• Electric cars tend to lose value faster than hybrids or gasoline-fueled cars.

Vehicles that typically hold their value well may be are considered more rare, more reliable or long-lasting, or easier to resell than the average vehicle. Some, such as Jeeps, Porsches and Tacomas, check all three boxes.

SUVs outperform sedans because they are seen as more durable and more practical. That said, compact and midsize sedans hold their value well compared with most electric vehicles and expensive luxury cars.

And of course, a car that's in good shape will command a larger sum than one with multiple repairs and chipped paint. The best thing you can do for your car's value is to take care of it.

FAQs
How long should you keep a car before trading in?
Ideally, you want to keep a car for a few years after it is paid off before you trade it in. This way, you get to enjoy the benefits of ownership. If you can't or aren't willing to wait that long, at least make sure you have positive equity in the loan.

Does it make sense to trade in my car?
It makes the most sense to trade in your car when its value is greater than what you owe on the loan. This way, you can use that equity as a down payment toward the next vehicle you purchase.

Is it better to sell your car or trade it in?
You'll get more money if you sell the car on your own, but you'll have to deal with strangers and the process could take a couple of months. Trading in a car will net you less but will take much less time and effort.

What is the best month to sell a car?
There isn't an exact best month to sell a car — rather, there's a range of months. Edmunds data shows that vehicles tend to hold their value better in the first and second quarters of the year.

Related article:
How to Trade In a Car