When buying a new or pre-owned vehicle, many consumers wonder what they should do with their previous vehicle. There are different options available but it usually comes down to selling it yourself or trading it in. If you are not sure which option is right, the following article should help.
But first, you should ask yourself a few questions. Specifically:
- When do you want to complete the purchase of your next vehicle?
- Will you be using the money you received from your current vehicle as a deposit on your next vehicle?
- How much money do you want to receive for your current vehicle?
- How much is your current vehicle worth?
- Is your current vehicle in good condition?
- How old is your current vehicle?
These questions are important, because when you decide to sell your vehicle yourself or trade it in, there are important considerations that must be taken into account.
For example, if you sell your vehicle yourself, you will likely get more money for it. That is because the dealership will offer you the book value of your vehicle while the market will give you the market value. However, you will be spending considerable time trying to sell your vehicle.
Selling a vehicle is not easy and the second you put it online, you will receive multiple calls at all times of the day, and you will be asked to be available evenings and weekends so somebody that you do not know can come see your vehicle. Moreover, you will be surprised at the amount of fraudulent calls and emails you receive from people claiming to want to buy your vehicle cash in hand.
That’s why you have to weigh the cost of the time that you will spend and the aggravation of selling your vehicle yourself. If you want to complete the purchase of your next vehicle soon, selling it yourself isn’t the best idea.
Moreover, if you plan on using the money you received for your current vehicle to buy your next vehicle, you should know that the value differs when it is a trade-in versus a cash deposit. If you trade in your vehicle, the amount you receive is applied on your next vehicle before taxes are calculated. If you put the money you receive from selling it yourself, it is actually a deposit, and the money is applied after taxes are added. This narrows the gap between the value of the trade and the value of selling it yourself.
Next, you should know that selling your vehicle means that you are responsible for it even after the sale. If your vehicle is not in good condition or there is an expected problem that occurs after you have sold it, you could be held responsible. When you trade in your vehicle, we only ask that you give us an honest overview of its current condition. Once the trade has been completed, you are no longer responsible for what happens to the vehicle.
Lastly, you should know that the value of trade-in vehicles has significantly increased in recent months. You will be getting more for your vehicle then you may have thought and if you have a number in mind that you want for your current vehicle, you may just get it when you trade it in and you will avoid a lot of the issues that come with selling a vehicle yourself.
Give us a call today to learn more.