Trade In My Car
or Selling Your Car Privately
What to do? It’s a well-known fact that selling your old car privately, as opposed to using it as a trade-in at the dealership, will put more money in your pocket. However, there are other pros and cons that you should consider before making that decision.
First, what are the steps when selling your car privately?
Well, It requires time and energy.
1. Clean it up: A clean car always makes a better impression. So, spending some time detailing, or paying someone else to detail, is a must.
2. Repairs: You may find a few things (hopefully minor) that need to be repaired or replaced. Buyers want to purchase a vehicle that appears to have been cared for on a regular basis.
3. You will need to advertise and that involves pictures, specs and other pesky details. Depending where you decide to list your vehicle, it also usually means spending a few dollars.
4. So, it’s clean, looking its’ best and the ad has been placed. Now, be prepared for the phone to start ringing all hours of the day and night. Be prepared to answer all of the usual questions and then some.
5. If you want to sell your vehicle quickly, you will need to be available for potential buyers to take a look at it. It will also help if you are flexible on the price.
6. hey will want a test drive. Will you go along or will you hand over the keys and pray that they return with your vehicle in one piece?
7. Finally, the negotiation will begin.
8. Prepare and finalize the necessary paperwork.
What does it take to trade in my car?
Short answer: Not much!
1. A car dealership will accept any car in any condition. They don’t care about dents, dings, rust, rips or stains in the upholstery. Even if the car doesn’t run, they’ll have it towed in as a trade.
2. Plus, trading a car in to the dealer is simple. In total, it takes all of 5 minutes and you can do it on your schedule any day you’d like. There is no investment of time or money, and after a few simple signatures the dealership takes care of all the paperwork.
In conclusion, it’s all about time, energy and money. Yes, you will, in most cases, make more money by selling the car or truck on your own. However, perhaps you should ask yourself a few more questions to decide if it’s worth it.
For example, the best vehicle candidate for a private sale is a popular model, equipped with the kinds of features shoppers want, in excellent condition with low mileage and all the maintenance receipts. That kind of car will sell fast. If your current car does not meet these criteria, you might want to consider trading it in. High end, extravagant vehicles not only take longer to sell; but the potential buyers also examine these cars from top to bottom. If you are not sure your car will pass the scrutiny test or you do not have the temperament or time to deal with these issues, then maybe a trade-in is the smart decision.
In some states, there are also tax savings to consider. Sometimes there is an added benefit to trading a car. For instance, in some states like Arizona, you get a tax credit when you trade in a car. In this case, if the dealer were to give you $10,000 for your trade in and your new cars sales price was $18,000 you would only pay taxes on the difference, which is $8,000.
You also cannot afford to ignore potential scams. High dollar items for sale are a target for internet scams. Be careful accepting money orders or checks from someone over the internet. Another popular swindle is someone buying the car and requesting you to ship it. These buyers will often offer to send you a check for more than your asking price to cover shipping and “your time.” They have your car by the time you find out the check was fake.
Last, but hardly least, the difference between the trade-in value the dealer will pay versus the sales price from a private party is not the same for all vehicles. A smart first step would be to get a good idea what the trade-in value will be and then compare that to the price your car or truck will likely sell for. At that point, you can decide if all the time and energy you would devote to selling the vehicle will be worth the extra profit.
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