If you’re planning to get rid of your old vehicle, there are two ways you can make money from it: a private sale vs. a trade-in.
With a private sale, you’re looking to sell your old vehicle to an individual. Generally, you will independently post your vehicle online, and interested buyers will contact you. Then you will meet with them at an agreed-upon location to take a look at your vehicle and confirm interest.
With a dealership trade-in, you will drop off your old vehicle at a participating dealership. Usually, the dealership will accept your vehicle and pay you the trade-in price, which you can put down on a new vehicle.
Depending on your unique situation and vehicle type, you may want to sell it yourself or trade it in. Below, we’ll discuss the pros and cons of selling vs. trading.
Private sale vs. a trade-in
A primary pro of privately selling your vehicle is that you can get the most money from it. Even if you have to negotiate a selling price with the buyer, buyers are usually more willing to accept your desired price - especially if you have a highly sought-after vehicle that’s in excellent shape with low mileage.
A con to privately selling your vehicle is the investment in time and effort. You have to take the reins and post your vehicle for sale, take calls and answer inquiries, and schedule test drives. All of this can take weeks or even months, which will require you to have a flexible schedule to make room to accommodate these instances.
Furthermore, after you sell your vehicle, you will have to handle the necessary paperwork, such as completing a notice of transfer.
A few pros of a dealership trade-in are the time savings and freedom of responsibility. Many dealerships are happy to trade in your vehicle and deal with the paperwork – all you need to do is review the contract and sign it. Plus, you can get a new vehicle when you trade in by using the cash you received as a down payment. This can result in lower monthly bills on your new vehicle.
Another benefit is that you can get a tax advantage for a dealership trade-in. Most states only charge sales tax on the difference between your trade-in value and the new vehicle price.
Despite these benefits, there is a primary con to consider: You generally don’t get a lot of money back with a trade-in. This is because dealerships have to invest additional money to refurbish the vehicle and post it for sale. However, due to recent plant shutdowns and supply shortages, vehicle production has dropped. Combined with an increase in buyer demand and interest, the result is that used vehicle trade-in values are rising.
Where to secure your next vehicle
If you have any concerns about a private sale vs. a trade-in, turn to a reliable dealership. Right now is the opportune time to trade in your vehicle for a high price that can serve as a great down payment on your new vehicle.
At Mike Duman Auto Superstore, we give top prices for trade-ins. In business for over 40 years, we offer competitive prices on our trade-ins and have a large inventory of popular, reliable vehicles to fit your preferences, needs, and lifestyle. And you can trade in your vehicle and get a new one on the same day, saving you time and effort!