Sell Your Car Privately or Trade It In?

So you are in the market for a new vehicle, but you want to maximize what you get for your previous car. The dealership is trying to convince you to trade it in, but is the ease of doing that worth it? We will make the argument both ways, for trading in your vehicle and for selling it yourself. Read the pros and cons of the two decisions, see how they apply to you, and make your decision with confidence.

Pros of Trading Your Car In

*Its easier - The best reason to trade a car in at the dealership is that it is much easier than trying to sell it private party. By using the dealership to sell your trade in you will save yourself headaches and insure you get the money for your trade instantly.

*Its faster - If you are financing your vehicle you may not qualify to buy another car without selling your current car. You may also need the money for your vehicle for down payment to qualify for the new vehicle. You may not be able to wait, it may take you weeks or months to sell your vehicle private party, especially if its a more common vehicle or more expensive.

*Tax Breaks - Most states give you a tax credit on trading in your car with a dealer. That means you will only pay sales tax on the difference between what the dealer gives you for your vehicle and what the price of the new car is. Taking this into account, a trade in worth thousands of dollars could add up to hundreds if not thousands of dollars in tax savings.

The Cons of Trading In a Car

*Less Money - The value of a trade in is usually thousands less than the private party value. This is because private parties sell the vehicle as is and the reconditioning is left up to the new owner, when buyig from a dealership these issues are usually fixed and reconditioned to the states minimum standards and then resold.

*Confusing the Deal - Adding a trade in to the negotiation process can create nooks and crannies that dealers can use to hide extra profit. This is especially the case if you have negative equity (you owe more on the vehicle than what its worth). This can lead to a worse deal for the consumer overall.

Private Party Sales Pros

*Better Values - The primary reason that consumers make the decision to put up with the difficulties of selling a car private party is that they can get a higher price for their vehicle than they can with a dealer.

*Options - What if you want to give the vehicle to your child or a family member? Or you need to drive it for a little while after buying a new one (common practice when trading in a pickup for a car)? Or you want to donate it to charity? Once you trade it in at a dealership you have no say on what happens with the vehicle and have no other options.

*Money - Selling your car before you decide to purchase a newer vehicle can give you more money towards the purchase of the vehicle. A larger down payment can save you on finance charges and give you more negotiation ability, especially the case with less than ideal credit.

Private Party Selling Cons

*Extra Work - The most basic of reasons people do not want to sell their car private party is that it requires extra work. You have to detail the vehicle, fix any obvious issues, advertise the vehicle, schedule appointments and meet with people that are often rude and not serious. It can be a headache.

*Time - Selling a vehicle takes time. You have to keep it on the market for as long as it takes to sell the vehicle, be available for appointments, test drives, mechanic visits and phone calls. Even after the sale it sometimes takes the buyer time to get the loan for the vehicle.

*Loans - If you still owe on your vehicle, a private party sale could be impossible, or close enough to it. Find out your state's laws to find out what you need to do to be able to sell a vehicle with a lien on it. Even if its legally possible, finding a consumer willing to buy a car with a lein on it can be daunting.

*Paperwork - It's your responsibility to find out what paperwork is needed to sell a vehicle. Issues like liens, the buyer using a loan to purchase your vehicle and different state regulations can make this a more complicated process.

*Safety - You will be inviting strangers to your home and accompanying them on test drives. At the very least you will be subject to meeting strangers of unknown backgrounds. At worst you could put yourself in a very unsafe situation.

Is it worth your time and effort to sell a vehicle yourself? Is it worth a few weeks or months of effort to save a couple thousand dollars? The basic decision comes down to convinence vs money. The decision is yours.

#tradein #privateparty #sellingyourcar