Sell or Trade In?

Your old car left you on the road after 5 years of trouble-free service. You had it fixed but then you feel it’s time to upgrade to a new car. Finding your next car is easy as long as you know what you want. But how do you go about selling the old horse?  Should you trade-in at the dealer or sell it yourself?

The answer may depend on what is on the table. So, let’s take a look at the key points and pros/cons of these options to see if trading your car is wiser than selling it.

There are a lot of ways to go about selling your car. You can either sell your car directly to a buyer or through consignment in a buy and sell dealer. These methods have their own pros and cons, and preferences vary based on your individual needs.

 If time is on your side, posting it in Social Media will almost always get you the best price for your old car. If you’re looking for decent value and convenience, you should consider selling through consignment with a buy and sell shop.

You are more likely to receive better sales when you sell your car privately. Facebook Marketplace is a good platform but I’m sure there are a lot more sites you can do your posting.The advantage in this is you have full control of the sale.

But most of the time, maximizing the sale ofyour carwill not be easy. It requires time dealing with potential buyers. In most cases, it takes months. Doing it privately will also expose you to some potential scammers, not to mention the time consumed in haggling and negotiations, and of course, the paperwork.

If you don’t want the hassle of selling your car on your own, a smoother way of getting rid of it is by trading it in at the dealership.

Most car dealers allow you to trade-in your old car when you get your new car from them. This option is as straightforward as its name suggests and you’ll be able to use the trade-in value of your old car to offset your new car purchase.

The advantage of “trade-in” is that it happens only in the dealership. When you trade-in your car, you’ll be doing it at the same dealership as buying your new car. You can use the trade-in value to offset your new car’s price, which will make the downpayment lower, sometimes, even cover it. The trade-in process is hassle-free and the dealer handles everything for you. It’s a lot more convenient. 

But there’s a price you have to pay to enjoy all these benefits.Your trade-in valuation is usually lower than when you sell your car privately. That is the biggest disadvantage of “trade-in”.

What is best to do?

It really depends on what you value most. Many would say that money is more important while others just want to move swiftly forward. Maximizing the sale of your old car will always give you more to pay your new one.

But for those who think time can’t be bought, a trade-in is best, even with a lower than market valuation. Weigh these two well before you make a decision.