Some of us like to hold onto our cars for many years while others chop and change with a new car for every season. Personally, I for too much of an attachment and as a result, I end up having to move house just so that I have a place to park them all. One of the typical steps though for any vehicle ownership experience is the selling process. This can be a daunting one, particularly in this day and age where intentions are not always pure.
Related: Can I trade in a new car for an older car?
If you're looking to get into a newer car or even just something different, the process of selling a car may be causing some anxiety. This can push you to consider a trade-in rather than a private sale. While this may seem like the easiest, no-mess, no-fuss solution, it comes with its own set of negatives. Let's look at a few factors you should consider when thinking about selling or trading a car in.
Value
The first hurdle you will encounter is determining the value of your current vehicle. While it's only worth what people are prepared to pay for it, you can get a pretty good idea by using a valuation tool such as the one offered by AutoTrader (click here). You will need to enter in some of the vehicle's particulars and it will give you an estimated value. This value has to be estimated because the tool doesn't account for condition and service history; all factors that affect the vehicle's value.
This number that you get will give you an idea of what you can expect to receive if you sell the vehicle privately; trade-in will be a different story though. As dealerships have to make money to continue operating, they have to place a markup on the vehicle you're trading in before selling it themselves. This is all part of their business model. As a result, you will get less than the valuation tool suggests with the market dictating how much discount you will have to settle for. Popular cars that are easy to sell will have dealers offering closer to market value than obscure, unpopular models where the trade-in value can be as much as 25% less than market value.
Therefore it stands to reason that the best way to get top dollar for your vehicle is to cut out the dealership makeup and sell it yourself. This ensures that you have control over the asking price and the final say over any negotiations.
Convenience
This is where the struggle comes in. With shady buyers and con artists abounding, it's a daunting task, selling your car privately. There are numerous risks ranging from meeting the buyer, the test drive, the funds clearing, and the paperwork associated with changing ownership. It's for this reason that many sellers are prepared to lose out on some of the value of the vehicle and simply trader it in, where the dealership handles the nitty-gritty stuff and you get to drive away with another vehicle.
AutoTrader knows that this can be offputting for private sellers and has come up with the Sell It For Me service that provides peace of mind in addition to convenience. Through this tool you will be able to list your car for the price you want, let AutoTrader act as the mediator, filtering out all the tyre-kickers, scams and con artists, and connecting you with an interested buyer. You will meet the prospective, verified buyer at a neutral location with AutoTrader on hand to assist to ensure everyone's safety. AutoTrader also helps with the paperwork and will only instruct you to hand over the keys once the funds have been verified and paid to you. This only costs a small fee and is a great way to ease the burden of a private sale. Click here to find out more about Sell It For Me.
Verdict
It all boils down to money or convenience. If getting the most for your car is the priority, then a private sale (with or without the assistance of AutoTrader Sell It For Me service) is the way to go but if you are looking for the fastest way to get out of your car and into another, with little concern for getting top dollar, then a trade in will work best for you. Dealers will thank you for your business and you've done your part to help them keep the lights on.
