If you need to buy a new vehicle right now and you’re still stuck with your old ride, you have probably started contemplating your options. Some people will prefer to go for a trade-in because of the convenience it offers, and it can be a good choice in some cases. But it would be wise to look at other options too to ensure that you get the best deal possible for your vehicle. Let’s take a look at some of the pros and cons of trading your vehicle in vs selling it yourself.
Pro – No Need to Wait for a Buyer
This right here is probably the single biggest advantage of going for a trade-in. This is especially true if you have a vehicle that is hard to sell or has lost a lot of value since you bought it. Going with a trade in this case will allow you to at least get some value from the vehicle right now. You might be a bit disappointed by what you get, but you at least won’t have the vehicle on your hands and will get an instant discount on your next purchase.
Con – Your Car Will be Undervalued
You won’t get full value for your vehicle when you trade it in. That’s just the way it is. And this is not because sellers are trying to rip you off. They are basically doing you a favour by taking the vehicle in and having to make a margin on a sale. They also don’t know if they’ll be able to sell the vehicle at all. So, don’t take this personally and see it as a part of the game.
If your goal is to sell the vehicle quickly while getting the most value for it, it would be a good idea to use online services. If you’re wondering how to sell my car online, there are multiple options that you go for. You could use a sell my car online service that will connect you with a wide number of dealers and have them compete for the best quote. This is probably the best way to get the highest possible quote for your vehicle and get it off your hands fast.
Pro – It’s More Convenient
If you don’t want to have to go through the hassle of listing your car and only want to deal with one person, then this is the way to go. There’s nothing like coming into a dealer with your old clunker, getting a price for it, trading it in, and leaving with your brand-new ride right on the spot. This is what makes trade-ins so popular with busy people who simply want to get a new car and not have to worry about anything else.
You won’t have to worry about unreliable people flaking on you or having a bunch of strangers show up to or near your house driving your vehicle. The last thing you want is for some irresponsible driver to cause damage to your vehicle because they drove it too hard or got into an accident. These are all things you won’t have to think about when trading in.
Con – You’ll Limit Your Choice of Dealers
If you want to go for a trade-in for your new vehicle, then you will have no choice but to go with a dealer that offers that type of service. Also, you might not like the deal that most dealers give you. So, you could end up with only a handful of dealers you can consider, and you will be limited to their selection. So, this is something you’ll need to think about when going for a trade-in.
Pro – You Could Make Savings on Sales Tax and Financing
One of the benefits of trading in a car that many people don’t consider is that you could make savings that extend beyond what you will get from the trade-in alone. Since the cost of the vehicle you’re going to buy will be lowered, you will be paying fewer taxes. You’ll also be able to lower the amount of money you’ll have to borrow and the interest you’ll have to pay through financing.
Con – You Have No Control Over Who Will Get the Vehicle
Some people prefer knowing who they’re going to sell the vehicle to. Some might even want to help certain people, like students, senior citizens, or new drivers, for instance. This is something that will be entirely under your control when you sell a car yourself. You can set the price you want too, so if you want to help someone in need and do a good deed while selling your car, sell it yourself.
As you can see, choosing between trading a vehicle in and selling it is not that straightforward. But, if you lay down your specific needs and how much you need to get from the car, you should be able to come to a decision pretty fast.