Would You Get More from a Trade-In Or a Private Sale?

When it comes to changing your car, there are two options available. Those are trading-in and selling your car. Both of these are feasible ways to change your car, but there are advantages and disadvantages to both, but which will get you more? 

sell your car

Using a Trade-In to Change Your Car

Generally, people opt to trade-in their vehicle because they can get rid of their car and pay off some of their new car all at once without any hassles.

A trade-in is pretty simple. If you have seen a new car you would like at a dealership, then take your old car to that dealership and trade-in.

The value of your old car will be determined by the dealership and you can use this amount towards your new car.

This might be the easy way, but the price you get for your old car will be less than the market value.

A dealership needs to make money, which means they offer less than the retail value on trade-ins so that they can make some profit when selling your car. The trade-in value you receive will depend on the age, mileage, type of car, if it needs repairs or service and the overall general condition of the car.  

You could get more than the basic trade value if you are interested in a more expensive car or if the dealership needs to move a car off its floor.

It costs money for dealerships to keep stock on the floor and if they have a car that has been sitting for a while, they may offer you more on your trade-in so that they can sell you that car and get it off their floor.

Going the Private Route

Selling your car privately means that you will need to advertise your car and meet with prospective buyers, but you will be able to sell your car for more than what a dealership would offer you.

The buyer will also win in this scenario as they can get a car for slightly less than what a dealership is selling it for.

As said, you will need to advertise and meet buyers, which does involve some level of risk. You will need to be careful, meet in a public place, have someone with you and never let the buyer take the car before the money is in your account.

Selling privately means you can get more for your car, but you will need to practice basic safety. On the other hand, trading-in your car will give you less but it is easier, safer and quicker.

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