Should I Sell or Trade In My Car?
Getting rid of your old car can be a daunting process. There’s a lot of hassles associated with it, including deciding whether to sell or trade in the car. Is one really better than the other? That really depends on your car and current situation. We’ve got the answers for when you can’t help but ask “What should I do?”
Benefits of Trading in Your Car
One of the biggest reasons people choose to trade in their car is because it takes the hassle out of the selling process. After bringing your car to the dealership at your own convenience, you simply have to sign a few papers and get on with your day. In most situations, the dealership will accept cars in almost any conditions. Whether you have a fresh car only a couple of years old or a beater with missing parts that doesn’t run, the dealership will probably consider it. Keep in mind though that some dealerships may only deal with certain brands of vehicles. In addition, you’ll also avoid paying sales tax on the equity of your trade in. If the financial process of selling your car seems overwhelming, you may appreciate the limited financial exposure that comes with trading it in.
Benefits of Selling Your Car
With all the benefits you can see from trading in your car, you may wonder why you’d want to sell it yourself. The only real benefit to selling it yourself is that you can price the car at whatever you feel like putting it at. When a dealership takes a trade-in, they have a lot of work to do on their end to process paperwork and get it sold. Because of this, they need to make a profit so they aren’t going to offer you the full value of your car. It’s important to note that there may be some additional costs when selling the car yourself that may add up (you’re still carrying insurance, you risk damage done during a prospective buyer’s test drive, paying sales tax on the value of the car, etc.).
Basically it all comes down to the time and energy you’re willing to invest to sell the car. If you don’t mind putting in the extra hours and taking care of the paperwork and everything yourself, selling it yourself might be the way to go. If you just want to get it off your hands, trading it in is a better route.