What are trade-in values based on?

Trade-in values are primarily based on the vehicle's condition, mileage, and market demand. When determining a trade-in value, dealerships assess the physical state of the vehicle, which includes factors like exterior and interior quality, mechanical performance, and any need for repairs. Higher mileage typically decreases the value, as it signifies more wear and potential future issues. Additionally, market demand plays a crucial role; vehicles that are in high demand within the local market may fetch higher trade-in values, while those that are less popular may have lower values regardless of their individual condition.

Other factors such as warranty status, previous sale prices of similar models, and service history do play roles in the evaluation, but they are considered secondary to the immediate aspects of the vehicle's physical condition, mileage, and prevailing market conditions.