What type of car can I trade in?

It’s time to say farewell to your trusty steed for something newer... and now you're worried whether a dealership will be interested in what you want to trade in.

Over the years you have ‘personalised’ your current vehicle to the max. It has been lowered so much an ant can’t crawl under it and the paintwork is bright and loud, just like the exhaust. The tyres are very wide and you’ve flared the guards to accommodate them, and the sound system blasts out more watts than the engine has kilowatts.

But is it the sort of car that a dealer will take as a trade-in for a newer vehicle?

We asked a dealer principal of several franchised outlets about what a dealership will accept as a trade-in and he answered, “In a nutshell, anything.”

Are some colours more popular than others? What about options fitted? Is it a better proposition with some factory warranty left on it? What about the kilometres travelled?

According to our friendly dealer, who wished to remain anonymous, in order to maximise your trade-in value when buying new, choose an automatic unless it is a specialist car, because these days few drivers can, or want, to drive a manual.

Steer clear of the bright greens, oranges, purples and yellows. They may look great now, but in a few years' time they could fall out of favour with buyers. In the mid 2000s silver was THE colour, but more recently white has taken over and is more popular, although silver remains up there. So stick to mainstream colours like white, black, silver and to a lesser extent blue.

In the southern states a sunroof is a must, but in Queensland and the Northern Territory they are less appealing. So if you live in the southern part of the country spend the extra on a sunroof. Incidentally, 'sunroof' is one of the most popular search words on carsales.com.au.

Hatchbacks and SUVs are more popular than sedans or wagons, so if you are looking at a vehicle with the intention of optimised trade-in value down the track, forget station wagons and forget sedans. Specialist cars like an Alfa Romeo Quadrifoglio or a Porsche, Aston Martin or Benz C 63 are different propositions again.

Certain makes require expensive servicing periodically. If a vehicle is serviced by the book and the service schedule has been adhered to, it’s less of a risk, therefore more appealing to a dealer. That said, if a vehicle is rapidly approaching one of these major services, it is taken into account when the dealer is asked to appraise its trade-in value. The dealership will trade your old car but won’t keep it, deeming it to be too risky and costly to cover under a warranty.

The bottom line is the ideal car for trading has travelled an average of 15,000 km a year or less; it retains a year or two of new-car warranty; it comes with a full service history and popular options like a sunroof (see above). Most automotive dealers will take those cars all day long and pay good money for them. The cars might need minor repair or servicing work – new tyres or brake pads – but the risk to the dealer is low. A vehicle likes this places you in a relatively stronger position to negotiate a satisfactory change-over price.

Think about these factors when buying new to maximise the vehicle’s appeal and residual value so you're sitting pretty when you begin to contemplate trading up for another new car. And make an effort over the course of your ownership of the old car to keep it in a fit state and repair anything that falls off. The dealership will negotiate a lower trade-in price if you don't.