When you’re getting ready to upgrade to a new vehicle, one of the most important questions you’ll face is what to do with the car you’re no longer using. If you don’t plan to keep it, you’ll typically opt to sell it yourself or trade it in at a dealership. Which option is better? Read on to find out.
Selling Your Car: How It Works
If you choose to sell your car independently, you’ll need to carefully manage the entire process. Before listing your car, you must gather all the necessary documentation, including the title, service records, and previous sales paperwork. It also helps to get a vehicle history report so prospective buyers know exactly what they’re dealing with.
Next, you’ll need to thoroughly clean the vehicle inside and out. When you’re acting as the car salesperson, it’s important to make sure your car looks and smells as good as anything the buyer can find on a car lot. You may want to invest in a professional detailing service.
Once your vehicle is in top shape, you can begin researching its sales price. You may want to take your car to a mechanic for a full diagnostic so you can accurately assess the condition. Getting a report from the mechanic is also handy, so you can use this to verify the value of the vehicle when you’re pitching the sale to potential buyers.
Ideally, you could list your car at its estimated Kelley Blue Book value and leave it at that, but there are other factors you’ll need to take into consideration as well. Look up similar cars in your area and see what they’re going for, so you can make sure you’re choosing a competitive price.
Once you know what you’re asking for the vehicle, you’re finally ready to list it. Online listings are the preferred method for most individuals today. Once the listing is up, you’ll begin fielding offers and setting up appointments for prospective buyers to meet with you, negotiate on the price, and take a look at the vehicle in person.
The Pros and Cons of Selling Your Vehicle
Selling your vehicle independently will typically yield a higher price than trading it in. This is the primary advantage of taking this route. You can compare the anticipated sale value for your car with a dealership’s offer for the vehicle as a trade-in for a more detailed assessment of just how much you stand to gain.
The increased profit from the sale should be enough to compensate you for the challenges associated with selling the car. As you can see from the section above, it takes a significant amount of time, energy, and work to sell a vehicle. You’ll have to deal with preparing the car, listing the car, and communicating with buyers. If you’re not a skilled negotiator, you may not get the price you’re ultimately hoping for. Keep in mind that time is often money, and the time invested in selling your vehicle could be spent on other pursuits.
Trading In Your Car: How It Works
Trading in your vehicle is a fairly simple and straightforward process at most dealerships. You don’t need to research your vehicle’s history, take it to a mechanic, or compare it to other similar cars for sale. All of the legwork is left to the dealership.
You can get your vehicle’s estimated trade-in value online in just a few clicks. Bring the car into your dealership for a firm offer and more details on how to execute the trade.
You will typically trade in your vehicle at the same time that you purchase a new one. This makes the process of switching cars quick and seamless. You’ll leave your trade-in at the dealership and drive off in your next vehicle, with no need to find a second driver to drop you off or take care of the extra vehicle after you make your purchase.
The value of the trade-in is simply deducted from the purchase price of your next vehicle. Essentially, this allows you to use your previous car as a down payment for your next one.
The Pros and Cons of Trading in Your Vehicle
There are many pros to trading in your vehicle. When you choose this route, you will have an instant down payment for your new car. This is ideal if you don’t have cash ready to act as a down payment. If you do have additional funds for this purpose, you can simply increase the amount of your down payment.
The more you put down on your vehicle, the less you’ll have to finance. Since you pay interest on anything you take out a loan for, your down payment instantly reduces the final price of your vehicle. Trading in your vehicle can also reduce the amount that you’ll pay in taxes. In many states, you’re only taxed on the difference between the value of the trade-in and the price of your next car.
Trading in your vehicle is also much faster and easier than selling it yourself. If you’re selling your old car, you’ll likely have to purchase a replacement first, which means you’ll temporarily have two cars to deal with. If you sell your old car first, you’ll be left without a vehicle until you find another one to purchase.
The primary con of trading in your vehicle is that you may get a slightly lower price for it than you could command if you went to the trouble of selling it on your own.
The Conclusion
In most cases, it’s easier and more beneficial to simply trade in your vehicle. Though there’s a difference in price, you should also consider what you’re saving in taxes and interest by taking out a smaller loan for your next vehicle purchase. These money-saving perks can help close some of the gap, while the simplicity and ease of the transaction will help tip the scale.
If you’re interested in trading in your vehicle, we offer a fast, simple process with no strings attached. Contact our team at Rydell Outlet Center today to get started on the path to your next vehicle.
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