Usually if you’re in the market for a new car and buying from a dealership (second-hand or new) you’ll have a choice between trade-in or private sale. There are benefits to both choices and depending on your particular circumstances one way may be more beneficial than the other.
Generally, the main differences between both options is:
For a private sale, you will usually get more money for your car. But it can take a long time and advertising your car can be expensive. Once you weight up all the costs and time involved the extra cash may not be worth it.
With a trade-in, the dealer takes all the risk in the car taking time to sell. However, this risk is often mitigated with you being offered a much lower figure than a private sale would fetch. But, the ‘sale’ happens on the spot.
While the choice may appear simple, there are other considerations, and we’ll go over a few of them here.
Selling Your Car Privately
Selling your car privately is a good way to get more for your car and save on new car repayments. After all, the less you need to borrow the more you’ll save on intertest payments and that’s a good thing. But do you have the skills and time to sell your car? Unless you have sold a few cars in the past, it can be hard to tell. It may seem daunting at first, but it can be as easy or as difficult as you’d like to make it.
Dealership Trade-In
If the price you get for your car is not a real concern, then opting to take the dealer trade-in price can make for a quick and painless transaction. However, you still want to get a fair price for the vehicle you’ve looked after for many years. It is best practise not to take the first offer the dealer throws at you.
Many people think that what ever the dealer offers for your car is the final price, when in fact there are several factors that the dealer considers before making an offer:
If you feel the dealer is treating your trade-in unfairly and offering you a low price, you have a few options:
Most dealers will want the sale and be more willing to accommodate you on price than see a sale leave the office. Be firm, but also reasonable!
Which to Choose?
It’s usually best to take every situation as it comes. If you feel that you can get a good price for your car and have the time to spare, then selling private is probably a good option.
If you don’t feel comfortable dealing with people that may come to look at your car and getting a lower offer for your car is not a concern, opting for the trade-in may be a better choice.
Being armed with information is usually the best way to decide. Take your car into a dealer and ask them about the trade-in value of the car, your immediate reaction to the price they offer is a great indication for what you should do.