There will come a time when your current vehicle no longer meets your needs. You may need a larger car for a growing family or it just doesn’t run properly anymore. When that day comes, you need to decide if you are going to trade in your vehicle or sell it on your own to help pay for the new car.
Pro-You Don’t Have To Spend Time Finding A Buyer
The nice part about trading in your vehicle is that you know that the dealership will take it. Older cars may even get more than they are worth at times. Knowing you have a landing spot for your old vehicle makes it easier to move along with the process of purchasing your next vehicle.
Con-You Usually Get More From A Private Seller
In general, a private party sale is going to net you a larger sum for your vehicle. This is because you will set the price at current market value. When you go to a dealer, they will give you less than market value in an effort to make a larger profit from the car.
Pro-You Get Credit For The Trade Right Away
As soon as the contract is signed for the new car, you are given a credit toward the purchase price of the vehicle. When you agree to sell a car to a private individual, you don’t know if you are getting your money until the check clears. What would happen if you didn’t wait for a check to clear before handing the keys over to the new owner? You would lose your car and your money.
Con-You Don’t Really Know If You Are Getting The Best Possible Deal
Many different methods are used to appraise a car. You have no way of telling if you are getting the best price for your car or not. This is because you generally don’t know what appraisal source is being used. Therefore, it is better to sell your car on your own. That ensures that you get as much as you possibly can for your vehicle without question.
Trading in your vehicle is a good tactic to use when you don’t have a lot of time to find a buyer for your car. However, if you have some time to attempt your own sale, take the time to find a private buyer. Private buyers will always pay you more.