Your current vehicle won’t last forever. At some point, you will have to decide to either trade-in your current car to help pay for a new car or sell your car to raise money to purchase a new car. Which decision is the prudent one when it comes to getting rid of your old car?
Private Party Sales Yield More Money
Selling your car to a private party is the profitable way to get rid of your car. This is because you will get close to retail value for the car. When you trade in your vehicle, you have to allow for the dealer to make a profit, which means you are going to get less for your car. Though there are some pitfalls to be weary of, when you sell to a private party, you get to determine what the selling price is going to be.
Trading In The Car Is Much Easier
On the other hand, trading in your car is faster and easier than selling your car. The dealer will typically accept your trade no matter what condition the car is in. This means that you may get $1,000 toward the price of your new car even if your old car doesn’t run anymore or is 30 years old.
Your Car Could Sit Unsold For Months
Selling your car means that you need to be patient and understand the market. Generally, a newer car is not going to sell during the winter months. This is because no one wants to subject their new purchase to salt, slush and other road grime when that same car or a similar car will be available in the spring. If you are not good at marketing your car, it could sit simply because you aren’t telling the buyers what they want to hear.
You Might Not Know What Appraisal Method That The Dealer Is Using
For the most part, dealers use the NADA pricing system or the Black Book to determine the value of your car. However, you may not have access to those appraisal values unless you happen to work in the industry. For the most part, you are going to be basing the value of your car through a site such as Kelley Blue Book. This can create a situation where you may not think that you are getting a fair deal for your trade.
The decision to sell or trade your car depends on several factors. If you think that you can get more money by selling your car, you should try to make a private party sale. If you think that you are better off just trading it in for whatever you can get, make the trade.