The process of selling your car off may initially seem unnerving and complicating, but an organized approach will definitely increase your chances of having a sale that is quick, smooth and rewarding.
Beyond the money you could get for trading in your car, versus selling it on your own, there are other factors to consider, such as the legwork involved with each option. Here are a few pros and cons of trading in a car, versus selling it on your own.
Selling Car Privately Vs Trade In At The Dealership
Pros of Trading In
Trading in your car comes with several benefits, but it is possible that you won’t get as much money for the sale. The Car Factory has multiple outlets at Miami and Hollywood and can help you get the best deal on your car, in case you decide to trade it in and save yourself some legwork. Visit our website CarFactory.com or call us at (786) 406-6234 to book an appointment for a consultation.
An important advantage of trading in your vehicle is that it ends up requiring less work on your part. The process usually involves heading to a few dealerships to get estimates, choosing the best one for the trade-in, and closing the deal at the dealership by completing sales paperwork. The car dealership may take care of transferring the title and registering the car, and might even pay off your old car loan if you have one.
Reduced Taxable Sales Price
If you live in a state that charges sales tax, you might end up paying lesser tax, if you decide to trade-in a vehicle. Many states require you to pay tax only on the difference between your trade-in amount and the cost of the new car you’re buying.
Cons of Trading in
Lower Offer Rate
Car dealerships would always expect to make a profit on trade-in cars, so there’s a good chance they may give you less for your vehicle than what you could potentially get if you sold it yourself. Dealers generally offer less than a car’s wholesale price, which is the price a dealer might pay to buy it at the manufacturer.
Pros of Private Selling
The biggest benefit of selling your car privately might be the cash – but you will have to work for it.
Higher Sale Value
You may still get more money if you sell your car on your own, even after you’ve accounted for the cost of detailing and any maintenance for your car before it’s listed. But keep in mind that these price ranges fluctuate over time.
Cons of Private Selling
Increased Effort & Time
In addition to gathering all important documents like your car’s title and maintenance records, you will need to determine a fair selling price, clean and list it, screen potential buyers, and even go on test drives. Once you’ve done all this and found a buyer for your car, there’s a bunch of paperwork you will need to complete, so that the buyer can register the vehicle title in their name. This process tends to take a while, depending on the type of vehicle you have and the local used-car market.
The decision to trade in a car or sell it privately essentially comes down to two questions: How important is getting the maximum sales price for your old car, and how much work do you want to do to sell it?
Recommended Read: How To Get The Most Money For Your Trade-In, Miami
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