If you’re trying to get rid of your used car or truck, you may be weighing the pros and cons of selling it to a private individual or trading it in. To help aid your decision, check out these tips!
Trading Your Car In
Trading in your car is a really easy way to get rid of it. The dealership handles the paperwork, cleaning and basically everything else!
Although you will probably get the vehicle's wholesale value, you can still use that money as a down payment on a newer vehicle. Or you can pocket it.
Also, did you know there’s a tax advantage if you trade in your car? Almost all states only charge the sales tax on the difference between the trade-in value and new car price, which saves you a couple hundred dollars!
Selling Privately To An Individual
Compared to trading your car in, selling your car privately to an individual requires a lot of work! You have to place advertisements on the Internet and in newspapers, take phone calls, deal with questionable strangers and allow test drives.
After all this, you wont get much more than you would if you traded your car in. You also won’t receive the tax advantage. You also might not be able to sell your current car until after you buy your new car, so this means you wouldn’t be able to use that money as a down payment. If you still have a loan on your old car, you might also have an overlap in car payments until you sell it.
In summary, trading in your car may be the best option for you. It is a quicker and more reliable way of selling your vehicle and has a lot of advantages. If you’re still not sold, you could consider selling your car to a dealership that has a buying center, like Valley Car Group. Stay tuned next week to learn the many benefits of selling your car to a dealership VS. a private party.