When you’re ready to upgrade your car, selling it directly to a buyer usually gives you a higher price compared to trading it in at a dealership. However, this might not always be the best choice for everyone.
Dealerships offer sellers a trade-in value based on the book value or M&M value of the vehicle, which is typically 10-15% lower than the retail value. The retail value is the price at which the dealership resells the car to another person. This information comes from Motus.Cars.
On the other hand, if you sell your car privately, you have the potential to get that extra 15% if you can negotiate well. But keep in mind that selling privately has its own challenges and considerations.
The Pros and Cons of Selling Your Car: What You Need to Know
When you decide to trade in your vehicle at a dealership, they take several factors into account, including its condition, mileage, service history, mechanical warranty, popularity, and your next intended purchase. If you’re selling without intending to buy another car, the dealership considers the trade value, reconditioning costs, and expected resale time, which may result in a higher or lower price than the trade-in value.
There are benefits to selling or trading your car to a dealership. It’s generally a quicker process for both the sale and acquiring a new car, payment is guaranteed, and the documentation is handled professionally. Dealerships also handle administrative tasks like the change of ownership and perform vehicle checks, making them responsible for resolving any missed issues.
The only drawback is that the dealership may offer a lower price for your car. On the other hand, a private sale offers the potential to get maximum value, but it comes with considerations. Finding a buyer can be time-consuming, meeting strangers poses security risks, and scams are prevalent in the pre-owned market. Additionally, sellers remain liable for outstanding fees and fines during the change of ownership process.
Private purchases are also more challenging to finance, making them less attractive to buyers. Ultimately, it’s up to the current owner to weigh the pros and cons of each option.
Making Informed Choices for Selling Your Car
When you’re ready to find a new set of wheels and part ways with your current vehicle, it’s crucial to do your research and not settle for the first dealership you encounter. According to Motus.Cars, engage with various buyer service providers to assess your car’s value. Then, negotiate with the dealer where you plan to buy your new car to see if they can offer a better deal and a higher trade-in value, especially if their initial offer surpasses those from the buying service providers.
By following this approach, you can have confidence that you’re receiving good value for your car. If you’re determined to sell privately and aim for the highest price, ensure you only conduct business with someone you know well and fully trust. It’s important to be transparent and truthful about the vehicle’s condition and history with them, as you’ll be held responsible if any issues arise.
