Is it better to sell a car privately or trade it in?

The thought of selling your vehicle can be stressful, should you trade it in on the new model you’ve had your eye on? Can the dealer up the road offer you more? Should you take the plunge and try to sell your vehicle privately? In today’s article, we take a brief look at the three ways people usually sell their vehicles, list their pros and cons and then come to a conclusion as to which is best.

1. Trade-in

The trade-in is a very popular option for many car buyers and implies that you will be getting another vehicle from the dealership in question. The process is simple, you express your desire to purchase a particular vehicle from a reputable dealership after the requisite inspection and test drive, they offer you the possibility of trading your current vehicle in, perform an evaluation on your vehicle and make you an offer.

You may get less money in these scenarios than in a private deal as the dealer often has a trade and retail value for all models, which allows them to offer less for a vehicle, providing a buffer zone in which they can recondition or fix any faults with the vehicle and then still sell it on for a profit. A trade-in deal will often result in the buyer getting more money for their old vehicle versus simply selling the car to a dealership straight-up as dealerships need to incentivise trade-ins because it promotes stock turnover and ensures that deals are concluded timeously.

Pros

- Fuss-free

-The buyer does not have to worry about losing out on the new car while waiting to sell the old car

- Security of dealing with an established dealership

- All documentation is taken care of by the dealership

 

Cons

- You may get less money than in a private sale

2. Selling to a dealership

Dealerships that specialise in buying cars from private individuals have risen to prominence in recent years, meaning you can simply ask how much they will offer you for your vehicle and have a figure sent to you within a short time frame. This often works very well for those who have vehicles with underlying problems or require expensive maintenance soon. The problem with this method of sale is that it will often result in the seller getting the lowest amount for their vehicle as the dealership in question must now take on the risk of the seller’s old vehicle without the benefit of having sold a vehicle. AutoTrader can help you in this area too,  click here to see how we can take the wheel and help you sell your car.

 

Pros

- Payment is usually immediate.

- The car may have issues that you have disclosed, and the deal can still take place.

- Your vehicle will be out of your hands quickly.

 Cons

- You often get the least amount of money for your vehicle.

3. Selling privately

Selling your vehicle privately means advertising your vehicle on a platform that allows private buyers and sellers to interact in a safe environment. Private sales mean that you will need to take respectable photographs of your vehicle, create a detailed advertisement and of course, ensure that the deal is legitimate and that the paperwork is all taken care of during and after the deal is done. Selling privately means that you can ask retail value for your vehicle, or, if you have a low mileage, good condition vehicle, even more than that.

The private route works well for those who think that the trade-in value of their vehicle is too low based on the condition and perceived value of their specific vehicle, however, private sales come with the risk of scammers, the admin of dealing with multiple potential buyers and having to deal with potential hagglers when it comes to the asking price. We can provide you with the tools to sell your vehicle privately here at AutoTrader, click here to find out more.

Pros

- You get the most money for your vehicle

 

Cons

- Dealing with scammers

-It can be a time-consuming process dealing with potential buyers

-Having to deal with hagglers

Verdict

Having looked at all three ways in which one can sell their vehicle, we must conclude that the best option is situation-specific and will depend on the specific seller and their vehicle. If the seller wants to sell an immaculately maintained, low mileage vehicle, they are likely to get more money for it from a private buyer as dealers need to buy the product at a lower price and mark it up to make a profit, whether as part of a trade-in or a direct purchase. If the seller’s car needs some work and they are not bothered or financially able to carry said work out, a trade-in or sale to a dealership may work best.