Trade-in vs. Private Sale: Which One Should You Use to Sell Your Car?
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When it comes time to sell your car, there are a lot of questions to ask and factors to consider. The most important question, however, is whether to sell your car in a private sale, or trade it in at a dealership.
Selling a car privately is exactly what it sounds like: you sell the vehicle as though it were any kind of commercial good, with no intermediary involved. You’re responsible for determining the value, advertising the vehicle, collecting payment, and making sure that the title is successfully transferred. Trading a car in simply means you take it to a dealership. You negotiate a price and then they pay you for the vehicle – usually regardless of the type and condition of the car – and sell it to someone else.
There’s no right way to sell a car. A private sale works for some people and some cars, while a trade-in is the perfect way to handle to process for other situations. It all depends on your car, your priorities, and your situation. This article discusses the benefits of selling your car privately and the benefits of trading it in.
What's the benefit of selling the car in a private sale?
The main benefit of selling a car in a private sale is simple: money. When you sell a car privately, you are eliminating having to pay a middleman, and can therefore maximize the amount of money you put in our pocket.
When you trade in a car, the dealership’s goal is to make a profit. That means that they’ll give you notably less than they intend to sell the car for, so that it’s worthwhile for them. If you sell the car yourself, you can potentially sell it for the price that the dealer would sell it for, rather than the price they’d buy it for. This is especially beneficial if your vehicle is a hot commodity, and is worth a decent amount of money.
Furthermore, if you’re selling your car privately, you have the freedom to be picky or negotiate for the best price.
What is the benefit of trading in your car?
Trading in a vehicle has a lot of benefits, but none more so than the practicality. Trading in a car is quick, easy, and requires little effort or thought. In fact, you don’t even need to contact the dealership first: just take your car in, agree on a price, sign the contract, and you’re out of there. In many cases, you can trade in your car in a matter of minutes.
You also don’t need to worry about whether or not your car will get purchased. No matter the condition of your vehicle, chances are, a dealership will take it. In addition, you don’t have to deal with the process of showing your car: you won’t need to clean it, detail it, or maintain it while you wait for it to sell.
If you trade in your car at a dealership, you can also use the money as credit, and have it go towards a down payment on a new vehicle. Even if you don’t opt for this, you get your money immediately, so you can go car shopping whenever you’re ready. If you sell your car privately, you may have to wait until the vehicle sells before you can afford to go shopping for your new car.
There’s no right answer when it comes to choosing between trading in your car, and selling it privately. It entirely depends on your situation, and what suits you best. Both have pros and cons, so it’s important to consider both options before selling your vehicle.