For many drivers, one of the most important parts of Lexus financing isn’t their loan or lease; it’s their trade-in value. If you plan to leverage your current car’s value toward your down payment or lease initiation fees, you may wonder how Lexus of Valencia arrives at a trade-in value. Because we value transparency, we’re taking a moment to explain the process in depth.
Book Value vs. Trade-In Value
Like many dealerships, our trade-in values take your car’s Kelley Blue Book value as a starting point. You should see the same number whether you check via our website or theirs. However, that value should be read as an estimate, not an offer.
What Factors Influence Trade-in Value?
That estimate will be followed by an inspection at our Lexus dealership in Valencia. During the inspection, we’ll be considering several different factors.
- Overall Demand: If your vehicle is one for which there’s a particular demand, you may see more than book value for your trade.
- Supply: The other side of the supply-and-demand coin dictates that vehicles in high demand but low supply may also command a higher value.
- Vehicle Condition: Cars in better shape — with a maintenance history to back them up — are worth more to us than vehicles that aren’t.
- Warranty Coverage: Cars with remaining warranty coverage are valuable to us and our customers.
Conversely, some factors can lower your vehicle’s value. If you’ve smoked in the car, maintained it poorly, or modified it heavily, you may get less money for your trade. We suggest cleaning out your car or SUV thoroughly before visiting Lexus of Valencia, and calling ahead in case you have any questions. This will help ensure you get the most value for the Lexus financing process.
