Published: November 2022
There are many reasons to get rid of a car, but the two most common are to trade it in for a new car or to get cash. Both options have their advantages and disadvantages, which should be carefully considered before deciding which one to choose. However, unless the seller urgently needs financial help, you should seriously the car. In the right circumstances, this can be very beneficial to you as a consumer, as it often gives you better value for money than an outright sale.
Private sale – When trying to sell a car privately, the average seller can fall into many traps because of their lack of experience. For example, they often do their price research based on Blue Book values and Manufacturer’s Suggested Retail Price (MSRP), which is a poor approach because the average buyer chooses the private route to purchase their car to avoid the high costs associated with the typical dealership. Basing your prices on the average dealer can cost you in the long run because, unlike most dealerships, a private seller does not offer extensive warranties or factory or dealer certifications, making the higher prices often worth it. A car sold by a private seller does not have these advantages, making it harder to justify a higher price. In a private sale, it is important to find the right balance.
Trade-in – Another very effective option is to trade in your car for the purchase of another vehicle. The dealer needs to make a profit and if they are paying full price for each car traded in, they will suffer financially in the long run. Again, it is important to negotiate to find a reasonable deal.
There are some very effective ways to maximise the value of your trade-in. The first step, however, is to negotiate the price of your new car before talking about the trade-in. Even if a seller asks you to trade in your car, they will usually try to negotiate a discount on the first offer. This is because, although a trade-in is almost guaranteed to make money, the seller usually assumes that the car won’t be sold for several months. But hang in there. If the seller really needs your business, he or she will find a deal that satisfies all parties.
Depending on your situation, there are unique and helpful aspects to selling or trading in your car. It’s up to you to decide which method is best for your situation.