When it comes to owning a vehicle, timing is everything—especially if you want to maximize your investment. Whether you’re thinking about trading in your current ride or just curious about how long to keep a car, this guide will help you make the right financial move.
Let’s break down the key factors that influence the best time to trade in a vehicle, how vehicle depreciation works, and which cars hold their value the longest.
How Long Do Most People Keep a Car?
According to recent data, the average car ownership period in the U.S. is about 8.4 years. However, many drivers choose to trade in much sooner—between 3 to 5 years—depending on their lifestyle, financial goals, and vehicle condition.
Why? Because that’s the sweet spot between value retention, warranty coverage, and newer technology upgrades.
When Should You Trade in Your Car?
The best time to trade in a car is typically between years 3 and 5, especially if you:
- Want to avoid costly repairs after the manufacturer warranty ends
- Want to retain higher resale or trade-in value
- Prefer driving a vehicle with modern safety and tech features
- Are nearing the mileage threshold that lowers trade-in offers (usually 100,000 miles)
At Simi Valley Chrysler Dodge Jeep Ram, many of our trade-in customers opt to switch vehicles before hitting the 60,000–80,000 mile range, while their vehicles are still in high demand.
Understanding Depreciation: Why Timing Matters
All vehicles depreciate, but the rate of depreciation varies by brand, model, mileage, and condition. Here’s a general timeline of how car value drops:
| Years Owned | Average Depreciation (%) | Notes |
|---|---|---|
| 1 Year | 20–30% | Major value drop after first year |
| 3 Years | 35–50% | Best resale value before wear sets in |
| 5 Years | 50–65% | Warranty typically ends, value drops sharply |
| 7+ Years | 65–80% | Significant depreciation; value largely based on condition |
Key Insight: If you wait too long, your car’s value could dip well below the amount you’d need to upgrade affordably.
What Cars Keep Their Value the Best?
Some vehicles retain more value than others due to their reliability, brand reputation, and market demand. According to industry analysts, here are the top performers:
| Vehicle Type | Model Example | 5-Year Value Retention |
|---|---|---|
| Full-Size SUV | Jeep Wrangler | Up to 75% |
| Midsize Pickup | Toyota Tacoma | ~65% |
| Full-Size Pickup | RAM 2500 / 3500 | ~60–65% |
| Compact SUV | Honda CR-V, Jeep Cherokee | ~58% |
| Muscle Car | Dodge Charger / Challenger | ~55% |
At Simi Valley CDJR, RAM and Jeep models frequently lead trade-in value charts due to high durability and brand loyalty.
How to Maximize Trade-In Value
Here are tips to help you get the most when trading in your vehicle:
- Maintain a full service record
A clean service history builds buyer confidence and boosts appraisal value. - Keep mileage below key thresholds
Vehicles under 100,000 miles often bring better offers. - Avoid aftermarket modifications
They may hurt resale value or limit buyer interest. - Trade in during high-demand seasons
Spring and summer tend to bring higher trade-in offers due to increased demand. - Get your vehicle appraised
Use tools like Kelley Blue Book, then compare your value at trusted dealerships like ours.
Should You Sell Privately or Trade In?
Selling privately may get you a higher price—but it’s not always worth the hassle. Consider:
| Method | Pros | Cons |
|---|---|---|
| Private Sale | Higher sale price | More time, paperwork, and risk |
| Dealer Trade-In | Fast, easy, sales tax savings | Slightly lower price |
Bonus: In California, trading in a vehicle may reduce the taxable amount of your new car purchase, which can result in significant savings.
So, How Long Should You Keep a Car?
For most drivers, the best balance between value retention and usability is to keep your car for 3 to 5 years. This window allows you to:
- Drive a modern vehicle under warranty
- Avoid major depreciation losses
- Maintain strong trade-in value
And with models like the RAM 1500, Jeep Wrangler, and Dodge Charger, you’ll enjoy exceptional resale value even after several years.
Ready to Trade In?
Simi Valley Chrysler Dodge Jeep Ram makes it easy to get top dollar for your trade-in. Whether you’re upgrading to a new RAM 2500, a rugged Jeep Grand Cherokee, or a powerful Dodge Durango, our team is here to help.
Get a free appraisal today at
www.simivalleychryslerdodgejeepram.com
Or visit us at:
2350 First St, Simi Valley, CA 93065
Call: +1 (805) 387-9755
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