How much more money can you make if you sell your car privately?

By Ané Theron

If you’d rather sell your car privately because you’re displeased with the price or trade-in offered by the dealership, we aren’t surprised at all. Dealerships need to maximize their profit – wouldn’t you do the same if selling cars were your monthly bread and butter? That’s why your car is worth so much more in the private marketplace. The reason for this is the concept of trade- and retail value.

Trade value is what the dealer would pay for the car, where retail value is what the buyer would be willing to pay for the car in question. The private sale value is somewhere in-between, depending on how good the potential buyer and seller are at negotiating, and what the age, condition and popularity of the car is like. The bottom line is: the private seller will get more dosh for his pre-loved wheels, and the buyer will spend less of his hard-earned cash on said wheels, than he would on the showroom floor.

It may take a little longer to sell your car privately, especially if you own a model that is not very sought-after. But with a bit of time and patience, and by advertising your car on www.autotrader.co.za, you’re sure to make a few more bucks than you would have if you went the other route.

Click here to read ‘How to negotiate when selling a car privately’.