Trade-In Car to Dealership or Sell Privately?
- February 28, 2022
- Calgary Used Car Dealer, Calgary Used Car Dealership, Car Dealership, Cars, More Categories...
- Posted by Prime Autos
- Comments Off on Trade-In Car to Dealership or Sell Privately?
The hardest part about selling a car is deciding how to go about it. In this case, you can choose to trade it in with a dealership or sell it independently.
Of course, there are pros and cons for each option, which brings us to the million-dollar question: Which is the best option when you’re ready to sell your car? The decision isn’t always as simple, although it largely depends on your needs and financial situation. Find out which one will work out for you in this article.
Should I Trade-In my Used Car?
A trade-in is a way to use your existing vehicle to help lower the price of your new car. You bring your old vehicle into the dealership, and they take it off your hands, usually after evaluating its condition and making an offer.
Generally, the money from the trade-in is put towards used car financing on another vehicle. This sounds pretty good, right? With this, there’s no need to sell it yourself; you only need to drop it off at the dealership, drive home in a new car, and let them figure out the rest.
However, that’s not exactly how it works. Here are some things to consider before deciding whether or not to trade in your car:
How much is your car worth?
Trade-ins are usually offered below market value. That’s because a used car dealer has overhead costs associated with taking in used cars, reconditioning them, handling paperwork, marketing them, and so on.
How much do you owe on the loan?
If your loan balance is higher than the current resale value of the car, you’ll have negative equity in the vehicle and may not be able to sell it. This is unless you come up with cash to cover the difference between what you owe and what the dealer will pay for it.
Is there anything wrong with your car?
A used car dealer will generally deduct against any damage that needs to be fixed before selling a trade-in. The vehicle will need to be reconditioned and repaired before being sold again, so the dealership has to account for this up front.
Is Selling My Car Privately a Better Option?
Are you willing to sell your car privately? Selling a car on Kijiji or Autotrader is a lengthy process involving time and effort. The upside, however, is that you can usually get more money when selling your car privately than selling it to a dealership.
How much time do you have? Selling your car privately usually takes longer than selling it to a dealership. It could take weeks or months to find the right buyer. If you don’t have a lot of time, leveraging a dealership to take the car off your hands is the best choice.
How Do I Prepare My Car for Sale?
The first thing to do is to get your car looking its best. This can be done by washing, waxing, and polishing it. You could also take it to a professional for a more thorough clean and repair of any dents, scratches, or other body damage. Aside from that, you should also go through the car’s interior and make sure everything is clean. This includes the engine bay, so make sure you also give that a good clean.
In addition to taking care of the vehicle’s appearance, you should also get any service work carried out if required, as that will make your car more appealing to buyers. Finally, you need to ensure you have the entire relevant paperwork ready, such as your service history and MOT certificates. Doing so will go a long way to showing potential buyers that you have looked after your car properly.
Used Car Trade-Ins Calgary
Selling your car privately is a great option for anyone interesting in receiving top dollar for their vehicle. However, the process has its fair share of challenges, and it’s better to avoid these pitfalls. Dealerships make used car trade-ins simple and easy, and in the current environment, you can get great value for your vehicle.