If you’re in the market for your next vehicle and are considering trading in your current vehicle to upgrade it, now is the time to sell your used car to your local Honda dealership for a new or new-to-you model. Honda trade value is on the rise. Trade-in values for used Hondas are at an all-time high in the auto industry right now—so if you’re going to trade in your current vehicle for your next vehicle anytime soon, now is the time to pull the trigger on that trade-in.
Keep reading to learn more about the main benefits of trading in your used Honda before buying your next vehicle and why the trade-in value of used Hondas and used vehicles overall is currently so high.
Why Trade-In Your Used Honda?
There are many benefits to trading in your current used vehicle at a car dealership in your area before purchasing your next vehicle model. When you trade in your current used vehicle, the car dealership where you trade in your current vehicle in order to purchase your next vehicle will deduct the value of your trade-in vehicle from the purchase price of the vehicle you want to buy from that dealership.
Trading in your vehicle reduces the down payment you have to make on the next vehicle you purchase. It also decreases the amount you have to finance when you purchase your new vehicle, which increases your financing options and helps you pay off your auto loan faster with lower interest rates and shorter loan terms. Plus, you generally only have to pay sales tax on the difference between the value of your trade-in vehicle and the price of your new vehicle, which means you do not have to pay as much money in sales tax if you trade in your current used vehicle at a Honda dealership.
In addition to these benefits, trading in your used Honda at a Honda dealership is easy, quick, and convenient and saves you the hassle and frustration of trying to sell your used car to a private buyer.
Why Are Honda Trade Values Going Up?
Trade-in values for Honda vehicle models generally tend to be higher than the trade-in value of vehicles from many other auto brands because of the high reliability and excellent reputation of Honda vehicle models.
While the value of vehicles from many other auto brands depreciates relatively quickly, Honda vehicles tend to retain their value well and remain in safe, drivable condition for many years—even if they are driven frequently and have a high number of miles logged on them.
Therefore, when you trade in a used Honda, you already have an advantage over drivers who are trading in vehicles from other less reliable or less well-renowned automakers.
Trade-in values for used vehicles across the board are currently increasing and have reached a record high as of late. This is primarily a result of the consequences of the COVID-19 pandemic. The onset of the COVID-19 pandemic and the shutdowns and widespread financial challenges it caused led to decreased demand for new and used vehicles in general throughout most of 2020.
Since the world has begun to recover from the COVID-19 pandemic, there has been an overwhelming increase in demand for both new and used vehicles in the auto industry. This increase in demand has caused the value of both new and used vehicles to increase significantly, especially because most automakers produced limited numbers of vehicles during the height of the COVID-19 pandemic as a result of shutdowns and supply shortages that led to production delays.
The COVID-19 pandemic also led to a major global shortage in the semiconductors or microchips that are needed to produce new vehicles. During the height of the COVID-19 pandemic when most people were stuck at home all day long as a result of stay-at-home orders, demand for home electronics—which also utilize microchips that are needed to produce modern vehicles—increased significantly. This increased demand in addition to production delays as a result of COVID-19-related shutdowns led to an imbalance in supply and demand and caused a major global microchip shortage.
This global microchip shortage means that the number of new vehicles that can be produced is limited, which has decreased new car inventories at car dealerships around the world. These inventory shortages of new vehicles have driven up the trade-in values of used vehicles because car dealerships are desperate to fill up their sales lots with vehicles that can be sold—regardless of whether they are new or used.
This unique set of circumstances means that, if you go to your local Honda dealership to trade in your used Honda today, you will likely be able to get more money for your used trade-in Honda than you would be able to get at virtually any other time.