What's Better? Selling Privately vs. Trading in
What's Better? Selling Privately vs. Trading in
Posted on April 11, 2023
If you're planning on selling your vehicle, there are two options to consider: Selling it privately or trading it in to a dealership. As both have their advantages and disadvantages, we are here to help you understand which option is best for you and unique situation.
Before you begin the process of selling your vehicle, you must first understand the used vehicle market at the time of sale. The used vehicle market can change drastically based on the economic factors. Because of this, you need to research other vehicles and/or listings similar to your vehicle's age, mileage, body damage (rust, dents, scratches, etc.), and work that might be needed. Once you have a better understanding of these, you will have a better idea of what your vehicle is worth.
Selling Your Vehicle Privately
The primary advantage to selling your vehicle privately is that you are more likely to get your desired selling price for the vehicle. This doesn't come without negotiating the selling cost with a potential buyer however they are more likely to accept your desired cost as long as it is within a reasonable range of market value. This is especially true if you have a vehicle with low mileage, excellent shape, and key sought after features (heated seats, sunroof, etc.).
The disadvantage to selling your vehicle privately is the time and effort you must invest. Not only do you have to take the appropriate pictures, write up an appealing description of the vehicle, and set your price, you will also have to to answer interested buyers questions which can sometimes require mechanical knowledge. These questions vary based on the interested buyers needs or their own mechanical knowledge. Common questions are your vehicle's tire size (depth and rim size), number of cylinders, gas mileage, and towing capacity. You are also required to maintain a flexible schedule in order to accommodate perspective buyers which can be frustrating.
Another disadvantage to selling your vehicle privately is the required paperwork after your sell your vehicle. This process varies based on the province your reside in, however you must complete the necessary paperwork in order to notify the province that you have sold the vehicle. These steps/paperwork can be found on government websites - such as Service Ontario.
Trading In At A Dealership
The advantage to trading in your vehicle to a dealership is the time and hassle you will save. The dealership will take an on-site appraisal of your vehicle to determine the value for you, they will provide you an offer, and prepare all necessary paperwork between you, the dealer, and the province. Plus when selling your vehicle to the dealer, you have the option of purchasing a new vehicle (or newer used vehicle) and applying your trade-in value directly to the price of the new one - although you don't have to get into a new vehicle, you can simply take the cash they offer for it and walk away!
The disadvantage is that you generally do not get the same amount of money you would if selling privately. This is due to a dealership needing to invest additional funds after the sale to refurbish the vehicle, and to pay for fees they are met within from the province. However, due to recent economic factors, it is harder to find quality used vehicles therefore trade in values are currently much higher than before meaning you currently will make almost the same value if you were to sell it privately.
It's important to note, that if you lease your currently vehicle, you do not have the option to sell it privately. If you lease the vehicle, it must be either returned to the dealer you purchased from or used at another dealer as a trade-in. This is due to the vehicle holding a residual value and must be paid to the vehicle's manufacturer - either by you or the dealership buying the vehicle.
To set up a dealership trade-in or get more information on what is required when selling it privately, contact us today or click here to check out our inventory!