If you are in the market for a new car, you might be wondering what you should do with your old car. There are many different options, but the most common are to sell it on your own or to trade it in at the dealership. Here are some things that you need to know about both options so that you can determine the best choice for you.
Trading In The Car
One of the main reasons why people trade in a car is because it is easier. When you trade in the car, you don't even need to make sure that it is clean. So long as you have removed all of your belongings from the car and the car isn't badly damaged, the dealership will likely take it. They won't necessarily base the amount they give you on the trade in on how clean it is. Instead, they will look at the make, model, and mileage of the car. Then they will give you an offer based on the market value of the vehicle. Once the car is theirs, they will detail it to get it ready to sell and they will take care of the rest.
Another perk of trading in your car is that you don't pay taxes on the full amount of the car you buy. They will just have you pay taxes on the difference between the two prices. So if you buy a car for $15,000 and trade in your car for $5,000 you will only pay taxes on $10,000.
The main drawback to trading in a car is that you won't get as much out of it. Because the dealership has to do the work to get it ready and needs to make a profit, they will offer you less, sometimes a couple thousand dollars less than if you sold it yourself.
Private Selling
If you choose to sell your car privately, you will probably make more money on the car, but it will also be more work. You will have to take care of getting the car cleaned and detailed. You will meet with potential buyers, you will advertise the car, and you will be in charge of negotiating all the pricing and such. But, it is very likely that you will make more money on the car when all is said and done.
However, you need to decide how much you time is worth. If it takes you 30 hours to sell the car, and you only make $500 more on the car, is that worth it to you? Or is your time more valuable that you would just rather pay someone else to do the work and trade it in?
By understanding your options, you can choose what is best and right for you. For more information and options, contact local auto dealers, such as AutoStart.
