Should I trade in my old car or sell it privately?

The most common dilemma new car buyers face is whether to sell their existing car to a dealer or sell it privately. The answer depends on the type of vehicle you have, the condition of the vehicle, its availability, and the financial impact. The best candidate for a private sale is a popular model that has all the features a shopper wants, is in excellent condition, has a very low range and all repair receipts. This kind of car sells like hot cakes. If your current car does not meet these conditions, you may want to consider used car trading for a new one.

The car dealership will accept any car under any circumstances. They don't care about dents, dings, rust, tears or stains in decorations. Even if the car is not running, you can tow it as a trade. You obviously won't make a lot of money for the used car trading, but you'll get rid of the car and all its headaches. It is also easy to trade cars to dealers. In total, it will take 5 minutes, and you can follow the plan at any time. With no investment of time or money, the dealership handles all the paperwork after a few simple signatures.

On the other hand, selling your own car will put more money in your pocket. However, most private party buyers inspect the car from top to bottom, inside to outside. They will ask about maintenance history, accident history, torn seats and tire wear. If your car doesn't stand up to the inspection (or if you don't have the time or time to handle the task), it's best to trade it in.

Selling cars privately can take weeks. If you don't need a used car trading, it can take months (for example, a convertible with a manual transmission was available in Detroit at the end of January). In the meantime, you have to invest in advertising and keep the car clean, as potential buyers will call at short notice to view the car. You will need to test drive with potential buyers or allow them to drive without you. In most cases, you won't know it's for sale until the day the buyer arrives and walks away with it. Once you are interested in purchasing, you will have to go to the DMV to handle the paperwork and complete the status check.

Financially, the dealership will always offer you a used car trading that is worth less than the "trade-in" value. The reason is that the trade-in will either be cleaned up and sold on the dealer's used car (and only the best trade-in will be returned to the auction lot), or the trade-in will be issued at auction. Dealers spend a lot of time and money handling paperwork, getting the vehicle ready for sale, shipping it to auction and absorbing other costs. So unless the terms are close to perfect, the dealer won't pay much for the deal. Easy resale.

In almost every case, the proceeds from trading in a clunker will be much less than what would be gained from a private sale. If your car is just a few years old, this can be a lot of money. On the other hand, if your car is in poor condition, with low demand or high mileage, it's best to trade in your old car to avoid wasting a lot of time and money.