The choice to trade in or privately sell your vehicle varies for everyone. There are benefits to both; in some situations, trading in will be the way to go, and, in other cases, privately selling will be.
When trading in a vehicle, you sell it to a car dealership, and the transaction is usually completed in a day. When you privately sell, an independent buyer purchases your vehicle, and it may take several days for the transaction to complete.
Below are essential points to consider in a trade in and private sale that will help you determine which direction to go. Highlighting benefits and drawbacks will leave you with confidence in how to get the most value from your old vehicle.
Primary benefits and drawbacks of trade in and private sale
A clear benefit of privately selling your vehicle is you get the most money back because no middleman who intends to resell the vehicle is involved. The value is in the function of the vehicle, not the resale. Also, negotiating for an optimal price is easy. Though the buyer is likely to accept your initial amount, they may not have the sales experience to set a reasonably low amount during negotiations.
A clear drawback of privately selling is it takes significant time. A lot of work goes into successfully selling your vehicle that you may not have the time or energy for, such as compiling documents and records, maintaining the vehicle while in your possession, listing it, taking calls, screening buyers, and doing test drives.
The main benefit of trading in your vehicle is it’s quick and effortless. You don’t have to worry about paperwork, advertising, or maintaining your vehicle. You only take it to a dealership, agree on the price, sign the contract, and collect your money. A lot of times, you can complete this process in minutes. The money you receive can also go towards a down payment for a new car, which is helpful if you need a new vehicle immediately.
The clear drawback is you often get less money from trading in than privately selling. The reason is the dealer intends to resell the vehicle and needs to make a profit. However, if you consider the work of privately selling, plus how soon you need the money and the market value of your vehicle, less money may not be a significant drawback.
How to determine the right dealership that will deliver the best value
If considering trading in, get estimates from two or more trusted dealerships in your area. Though trade ins usually offer less money compared to private sales, you can still get good money outright toward your next vehicle.
One trusted dealership is Mike Duman Auto Superstore. In business for over 20 years, we help individuals of all credit types obtain the vehicle they need. We work with your unique situation to ensure you get the best value for your trade in and a new vehicle that will support your life.