You may have heard that if you sell your vehicle yourself, you’ll have more money in your pocket than if you sell it to a dealer. This may seem to be the case if you only consider the transaction and don’t take into account the additional cost and hassle of selling your vehicle to a private party.
The steps you will have to take to sell your car yourself are much more time consuming than you think. The money you make from selling your vehicle may not even make up for the extra cost of selling to a private party.
Here are 5 reasons why it’s better to trade-in your vehicle with a dealer than to sell it yourself.
1. Save on taxes with trade-in.
There is a tax advantage to trading in your current car, rather than selling it yourself and using the money as a down payment. In Canada, tax law allows you to apply tax as credit towards the purchase of your new vehicle, saving you thousands of dollars.
2. Save time and money on servicing
You will need to have your vehicle detailed to get the most out of a private sale. People who buy cars privately expect them to look clean, like the vehicles at a dealership. This requires you to spend some time and money on a detailing and service appointment. On the other hand, the detailer expects details and reconditions the vehicle anyway before it goes on sale - and that is included in the trade-in value.
3. Let the dealer find the buyer
When you sell your vehicle privately, it’s your job to find a buyer and for that you often need to spend money on pulling CarFax reports and advertising the vehicle on a marketplace. Even free advertising outlets like Facebook Marketplace or autoTRADER involve spending time writing the perfect sales pitch and taking quality photos. You’ll find that many of those who respond will not be buyers willing to come see the vehicle. Some will make an appointment and never show up. You might also receive offers from small used car businesses, who’ll try to lowball you. This is a waste of your time. You can easily avoid all this stress by trying to find the right buyer for your vehicle by trading it in and letting the dealer advertise it.
4. Get a new car the same day
When you trade in your vehicle, you immediately receive the value of your vehicle as part of the transaction. Many dealerships turn over their inventory very quickly. If you see a vehicle you like, you should rush to buy it.
5. No need to pay off your car loan in full
If you still have payments left on your auto loan, you will need to pay it off before the sale or it discourage potential buyers from making an offer. A dealer, on the other hand, has no problem working with you to pay off your existing loan. Most dealers will work with you regardless of your current credit situation - and help the buyers through all stages of their loan repayment. Looking to trader-in your vehicle or need more information or help choosing your next vehicle? Contact us at any time, and a member of our sales team will contact you.