Date Published: January 19, 2026 | Last Modified: 1 hour ago | 5 minute read by Jarod Rosin at Redwater Dodge

Understanding Your Vehicle’s Value: The Trade-In FAQ

The Ultimate Guide to Timing Your Trade-In: Maximizing Your Vehicle's Value

The Reality of the "Never-Ending Cycle": Understanding Depreciation

Depreciation is an unavoidable reality of vehicle ownership. From the moment a vehicle leaves the lot, its market value begins a steady descent. However, depreciation isn't a straight line; it’s a curve that drops sharply at specific milestones.

Every day your vehicle sits in the driveway, it is subject to market fluctuations, new model releases, and simple aging. When we say "the best time to trade is always now," it’s because "now" represents the highest value your vehicle will ever have from this point forward. By trading in today, you are essentially "locking in" your equity before the next cycle of depreciation takes another bite out of your investment.

The "Warranty Cliffs": Why Mileage Milestones Matter

One of the most overlooked aspects of trade-in value is the relationship between the odometer and the factory warranty. To a dealership, a vehicle with a remaining warranty is significantly more valuable because it reduces the "reconditioning risk."

The 60,000 KM Bumper-to-Bumper Threshold: Most standard warranties expire around this mark. If you bring us a vehicle at 55,000 km, we can market it as a "factory-protected" vehicle. If you wait until 65,000 km, the vehicle is "out of pocket" for repairs, which lowers its appraisal value by thousands.

The 100,000 KM Powertrain Milestone: This is the big one. Crossing into six-figure mileage changes how banks view the vehicle for financing. A truck at 95,000 km is a premium pre-owned asset; at 110,000 km, it often moves into a different "value tier" entirely.

The 200,000 KM High-Mileage Marker: For our Rig Ready drivers who put their trucks to work, the 195,000 km mark is your last chance to capture significant trade equity before the vehicle enters the "high-mileage" wholesale category.

The "Double-Dip" Advantage: Trade Value meets New Car Discounts

Trading in isn't just about what you're leaving behind—it's about the leverage it gives you on your next purchase. In the current market, CDJR dealers are hungry for quality, well-maintained trades to bolster their used inventory.

When you trade in a vehicle while purchasing a new one, you benefit from a Double-Dip financial win:

1. Maximum Trade Appraisal: Because we want your vehicle for our pre-owned lot, we are often willing to pay a premium above "black book" values.
2. Aggressive New Vehicle Incentives: By combining your trade-in equity with current manufacturer discounts and Rig Ready Approves, you can often step into a brand-new vehicle with better technology and safety features for a similar, or even lower, monthly payment.

Why Rig Ready Means More Money for You

Whether you’re driving a Ram 1500, a Jeep Grand Cherokee, or a Dodge Durango, the condition of your trade matters. At Redwater Dodge, we don't just see a number on a page; we see the value in the upgrades and maintenance you've invested. By choosing the right time to exit your current vehicle, you ensure that you are always driving a reliable, warrantied vehicle while keeping your total cost of ownership as low as possible.

Frequently Asked Questions About Vehicle Trade-Ins

Q1. When is the absolute best time to trade in my vehicle?

A1. The best time is always now. Vehicle depreciation is a never-ending cycle that happens every single day. By trading in today, you are locking in your vehicle’s value at its highest possible point before the next week’s depreciation hits.

Q2. How does mileage affect my trade-in value?

A2. Mileage is one of the most significant factors in your vehicle's appraisal. There are specific "value cliffs" you want to avoid:

• The 60,000 km Mark: This is often when bumper-to-bumper warranties expire. It is much better to trade in at 55,000 km than at 65,000 km.
  
• The 100,000 km Mark: Powertrain warranties typically end here. Trading at 95,000 km will fetch a higher price than at 110,000 km.
• The 200,000 km Mark: If you are a high-mileage driver, aim for the 195,000 km range rather than waiting until you cross the 210,000 km threshold.

Q3. Why should I trade in when buying a new vehicle?

A3. When you trade in while purchasing a new vehicle, you maximize your financial advantage. Dealerships are always looking for quality pre-owned inventory. Because we want your trade-in for our lot, we can often offer maximum trade value and combine it with big manufacturer discounts on your new purchase.

Q4. Does my vehicle’s warranty status matter for trade-in?

A4. Absolutely. A vehicle still under its original factory warranty is worth more to a dealer because it can be sold with greater peace of mind for the next owner. If you’re approaching a warranty expiration, that is your "green light" to trade.

Q5. Can I trade in a vehicle if I still owe money on it?

A5. Yes. This is a very common scenario. We will contact your lienholder to get a 10-day payoff quote. If your trade-in value is higher than what you owe (positive equity), that amount goes toward your new down payment. If you owe more (negative equity), we can often roll that balance into your new financing.

Q6. What documents do I need to bring for a trade-in appraisal?

A6. To make the process as fast as possible, please bring:

• Your vehicle’s registration and title.
• All sets of keys and remotes.
• Your driver’s license.
• Any service records or maintenance logs.

Q7. How do dealers determine the "Actual Cash Value" (ACV)?

A7. We use real-time market data to see what similar vehicles are selling for in our local area. We look at the year, make, model, trim, and physical condition. We also factor in "reconditioning" costs, what it will cost us to make the car "lot-ready" (new tires, detailing, etc.).

Q8. Will you buy my car even if I don’t buy from you?

A8. Yes! We are always looking to grow our used inventory. We will provide a fair, written offer to buy your vehicle outright, even if you aren't ready to get into a new Ram or Jeep today.

Q9. Does the season affect my trade-in value?

A9. In many cases, yes. For example, 4WD vehicles like Jeep Wranglers or Ram 1500s often see a surge in demand and value during the fall and winter months. However, because depreciation never stops, the "seasonal" bump rarely outweighs the cost of waiting six months.

Q10. How long does the appraisal process take?

A10. At Redwater Dodge, we value your time. A professional appraisal usually takes about 20 to 30 minutes. You can even start the process online using our Value Your Trade tool to get a ballpark figure before you arrive.

Q11. Does having a Rig Ready RAM or modified vehicle hurt my trade-in?

A11. Not at Redwater Dodge! While some dealers shy away from lifted trucks or modified Jeeps, we specialize in them. We understand the value of quality aftermarket parts and professional installations, ensuring you get credit for your upgrades.