When buying a vehicle, you typically already have one you want to get rid of first, but should you sell it yourself or trade it in through a dealership. This can be a hard decision for many people. Here are some pros and cons of both options!
Trading Your Vehicle Through A Dealership
Pro: Doesn’t take time or much work on your part
The biggest benefit is that the dealership does most of the paperwork for you. Typically, you trade in your vehicle at the dealership you are buying a new car from, so you don’t have to put work into looking for a buyer.
Pro: No denial
It’s very rare to get denied for any trade-in, so you don’t have to worry about not getting rid of your vehicle. You also don’t have to wait for multiple people to look at your vehicle, instead only the dealership needs to look at it and make you an offer!
Pro: No Tax Credit
There is no tax credit when you trade through a dealership. This is really appealing when you break it down. Example: the dealership gives you $10,000 for your trade-in, which then translates into not paying $625 in sales tax on your new purchase. If you think about it, you’re getting $10,625 which is more than you think you’re getting!
Con: Typically, a lower sale value
Dealerships still need to make a profit from trade-ins, so they may offer you less then what you could get out of privately selling your vehicle. The dealer also has to put some cost into it depending on the quality, so that could lower the value they offer as well.
Selling Your Vehicle
Pro: Higher sale value
The buyer of a private sold vehicle is not typically buying the vehicle to sell, so they’re willing to buy it at it’s worth. You set the price instead of the dealership setting it for you, so you can choose how much you want to sell it for.
Pro: You are in control of the purchase
If you want to sell your vehicle in the condition it’s in then you can ask that value for it, but if you decide you’d like to raise the value you could have it detailed, parts fixed, or new parts put on it. You basically decide the quality you want to sell the vehicle in, which will then set the value of the vehicle. Then you can decide who the best buyer is between your various offers.
Con: More work and time on your end
Selling a vehicle means you have to prepare the vehicle, list the vehicle, and find a buyer all on your own. This could take weeks depending on a few factors. Once you do find a buyer you also have to do all the paperwork and do it correctly to make sure the vehicle is transferred to the new owner correctly. Also, make sure you meet in a public place if you do not know the buyer.
Ultimately, it is up to you and what you want out of the vehicle. If it’s a simple process, with little work on your end, but at least a little money then you should trade the car into the dealership. If you have the time to put into selling your vehicle and want to make an at worth value for it, then you should probably choose to sell it on your own. Neither choice is a bad one.