When it’s time for a new vehicle, it can be a tough choice deciding whether to trade your car in on the new one or try to sell it on your own. The choice really comes down to whether you are willing to put forth the effort in selling it on your own or if you need the trade in for your down payment.
Pros and Cons to Selling your Car on your Own
If you are willing to spend a little time and effort, selling your car on your own can offer some big benefits, but many people don’t want to deal with it.
If you are willing to spend a little time and effort, selling your car on your own can offer some big benefits, but many people don’t want to deal with it.
- Most of the time, selling your car on your own will get you more money for your vehicle. Dealerships will often not offer much more than wholesale value for your vehicle, but selling it yourself lets you put the price on it.
- It may be easier to negotiate with your potential buyers as they probably don’t have the experience at haggling like a car sales person would. You may be able to keep the price closer to what you want.
- It does take a lot of time to sell your car. You need to get it ready to sell, advertise, deal with strangers, and give test drives.
- If you are counting on the money for your old car to make the down payment on the new, you may not be able to get your new car as soon as you would like. Or, if you still owe on the old car, you may have to make two vehicle payments a month until you do sell it.
- The longer you try to sell it, the harder it may be. If you don’t trade it in, you may be stuck with taking much less than you wanted if you can’t afford to make two payments a month.
- You will have to pay more sales tax on the new car, but if you make enough on the old one, you may still come out ahead.
Pros and Cons to Trading your Car to a Dealership
Many people think that trading their car to the dealership is the best way to get rid of an old car. There are many advantages to doing that, but one big disadvantage.
Many people think that trading their car to the dealership is the best way to get rid of an old car. There are many advantages to doing that, but one big disadvantage.
- The biggest reason to not trade your vehicle is the price. Dealerships will simply not give you as much for your car as if you sold it yourself. They need to think of resale value and will want to make money on your old car when they resell it to someone else.
- A huge advantage to trading in your car is how simple it is. You just drop it off at the dealer and from then on, it is their problem. You don’t have to advertise it and try to find someone willing to pay your price.
- The amount the dealership gives you can be used as part, if not all, of your down payment for the new vehicle.
- You will have to negotiate with very experienced sales people over the price.
- Many states only charge sales tax on the difference between your trade-ins value and the price of the new car so you may save some money in taxes.
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