Shopping for your new car is an exciting experience but before you can get your new wheels home, there are a few finer points you need to consider such as car finance pre approval and selling your current car.
Unlike browsing through hundreds of car loan options there are only a few options when it comes to selling your car – either privately or through a car dealership as a trade. So when you need to decide between the two, what’s the difference and which option will offer you the most value?
How much is your car actually worth?
Before you visit a dealership or advertise your car, you need to research how much your car is worth. A good way to gauge its value is to search online for similar vehicles currently for sale.
Of course, the only way car dealers can make a profit on your trade-in is by buying it for less than they can sell it, otherwise it’s not worth their efforts to fix any damage, detail it and sell it on for you. So it’s highly unlikely you could get the same price from a dealership for your car as you would do selling it privately.
So, why would you trade-in your car when you could possibly get thousands more by selling it privately?
Private car sales can be costly and time consuming – and that’s where the convenience of trading in a car comes into play.
Firstly, you need to organize advertising for your car. Will you pay for an ad on a car sales website, post it to social media or put up a sign in your car and hope for the best? If you decide to advertise, it may come at a cost depending on the type of ad you want.
You will also need to consider how soon do you need a new car and how much time do you have to talk to and meet with potential buyers. You may be lucky to find a buyer who’s happy with the price and condition of your car immediately but it’s more likely to take a little time to sell.
And lastly, you will have to compete with extremely competitive new car sales. With new cars so reasonably priced, it can be a hard slog trying to sell a used car when consumers can pay a few extra thousand for a brand new one.
Selling your car privately may end up more financially beneficial but could cost you a lot of your personal time.
Car Dealership trade-in
Car dealers offer convenience because you can sell and buy a car all in one place.
And while you may not get as much money for your current car than if you sold it privately, you may get a better deal on your new one. If the dealership is offering you less for your trade than you reasonably wanted, see if you can negotiate with your dealer on car accessories such as tint, floor mats or extended warranty.
Whether you decide to sell your car privately or trade it in for a new one – make sure you have done your research, know the value of your current car, shop around for a great price on a new car and organize your finance before contacting car yards.