So you’ve decided to finally take the plunge and get yourself a new car. Getting a new car is exciting, but selling your old car can be nerve-racking. But what are you suppose to do with your old car? You could try to sell it privately or you could trade it in at a dealership. Both options have pros and cons, so let’s see if it’s worth trading in your car.
Pros of Trading in Your Car
Trading in your car is quicker and more convenient than selling. Selling it privately takes time and effort. You’ll need to advertise the sale, arrange to meet with potential buyers, and deal with the legalities of transferring the ownership when you land the sale. On the other hand, when you trade in your vehicle, a dealership arranges everything in one or two days.
Another bonus when trading your vehicle is you only need to work with one person, the dealer. They’ll take you through the entire process and handle most of the footwork.
Trading in your car allows you to potentially get your new car at a better price. If you’ve paid off your vehicle, your trade-in price could be reduced from the car you want to buy. In return, you end up paying less in sales tax.
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Cons of Trading in Your Car
You will probably get less for your old car if you trade it in rather than sell it privately because the car dealership has to make a profit on it too. If you’re considering selling your old car privately, you need to decide whether it is worth the time and effort in an attempt to make more money.
When you agree to trade in your vehicle at a dealership, you are compelled to purchase your new car at the same dealership. It limits your options, so you need to be sure you want to buy your new car from the dealership you make the trade with.
Tips on Trading in Your Car
You need to research the high-end and low-end sales value of your car by searching online and by visiting used car lots. So when you approach the dealer, you’re confident of your knowledge of the market. You can then ask the dealer for a realistic value towards the high-end.
Make sure your car is in the best condition possible by taking it through a carwash and giving the interior thorough cleaning. Touch up any scratches and repair small dents. These small fixes may cost you a little bit of money, but it will be worth it when you get a better trade-in value.
Stay ahead of the news, trends, and seasons. For example, you’ll have more success trying to sell a convertible in the summer than in the winter. Also, keep an eye out for any recalls. If your car manufacturer is going through a recall, you’ll likely get a lower trade-in value.
So is it worth trading in your car? If your car is in great condition, you’re happy with the choice of cars at your dealership, and you’re prepared to receive less cash for your car in exchange for a smooth transaction, then trading in your old vehicle is a great option for you.