When it’s time to upgrade your ride, you’ll have some options to consider. If you need to get rid of your car to make room for a new one, or just because you don’t need it any more, you can either trade the car into to a dealership, or sell the car privately. Both options are good for different reasons.
When deciding what to do, it’s important to know why you need to get rid of the car, and if you would like to handle the entire sales process, or if you’d like to hand off that responsibility to a dealer. Here is an overview of what is involved in both trading in a car and selling it privately.
TRADING IN YOUR CAR
If you plan on getting rid of your car in order to buy a new car, one of the best options is to trade in your vehicle to the dealership where you plan on purchasing your new car. Here are a few benefits to trading in your car to a dealership:
Time and Convenience
If you like the idea of driving your old car to a dealership, handing over the keys and having everything else taken care of, than trading in is for you. The dealer will handle everything. You won’t have to worry about supplying a safety certificate, emissions test or go through the many hassles of selling the car privately.
The value of your trade in car will go towards the purchase of your new car. You can take some measures to raise the trade in value of your car by making any repairs or service that needs to be done, or you can opt to pass that expense on to the dealership.
Trading in your vehicle is most beneficial if you plan on purchasing a new vehicle directly from the same dealership. There is a significant tax savings when you trade in your vehicle, because you will only be required to pay taxes on the price difference between the old car and the new car. For example, if your trade in car is valued at $10,000, and the price of the new car you wish to purchase is $20,000, you will only have to pay tax on the $10,000 price difference.
If you do not plan on purchasing a new vehicle right away, selling your old car privately might be the best option. When you sell your car privately, you will be responsible for the entire process, from posting ads online, to meeting with potential buyers, to arranging test drives, to facilitating the title transfer. Here are a few things to note about selling cars privately.
Potential for More Money
One of the main reasons people opt to sell their vehicles themselves, is the potential to earn more profit from the sale than they would if they sold or traded their car with a dealership. You will be negotiating directly with the buyer, and as the seller, the final decision on how much you sell the car for will be yours.
More Work Involved
There is significantly more work and more time involved in selling a car privately than trading in with a dealership. You will be responsible for every step of the process. To maximize the vehicles value, you will need to make any repairs or have any service done as well as any cleaning or detailing work that needs to be done. You will also have to arrange for the title transfer.
Something else to consider is that you will be dealing directly with the customers, who will often times be complete strangers. There are certain risks involved in selling a vehicle privately, but the potential rewards could very well be worth the effort.
WHAT’S RIGHT FOR YOU?
When it’s time to decide whether to trade in or sell your car privately, take some time to research your options, and think about how involved you’d like to be in the process. If you want to simply hand over the keys and have your dealer handle everything, you should trade in your car.
If you don’t mind doing some extra work in order to walk away with more cash in your pocket, you consider selling your car privately. If you need any advice whether you should trade or sell your car, the team at Orangeville Honda will be glad to help. And if you have your eye on a new or used Honda, definitely consider trading in your car with us at Orangeville Honda.
We’ll help you get the best price for your trade in and the best new car for your needs.