There is a myriad of details to consider when making a decision about your next vehicle purchase. Beyond the make, model, color, and gas mileage of your next new dream car, you also have to figure out what to do with your last dream car while paying for the new vehicle in your life. That is when you have to answer the question of whether it is best to trade your car in at the dealership or to sell it to a third party. The good news is that there is no wrong answer, but deciding might lead to a severe case of analysis paralysis, so here are a few of the pros of each approach.
Trade In or Sell to a Third Party?
While the desire to buy a new car or truck probably builds slowly with each nickel and dime repair job en route to the dealership. Once that crescendo is reached, however, excitement and need usually builds quickly, so knowing what you want to do with your old vehicle should play an important role in your current thinking.
The Pros of Trading Vehicle into Dealership
The main advantage of trading our vehicle into a dealership, when it is time to pick out our new car, is convenience. This involves a no hassle transaction where you trade in your vehicle at the same time that you are purchasing your new one. The Sales Manager is an excellent resource to help determine the value of your trade-in vehicle. Hassle free, this approach eliminates the runaround of having to place an advertisement, dealing with strangers, and possibly waiting for that stranger to secure financing on more expensive vehicles.
When it comes to payment, the amount of the trade-in will be rolled up into the new purchase price. For example, if you are looking at purchasing a vehicle that is $20,000, and you have a vehicle to trade in worth $5,000, you will be paying or financing $15,000 at the time of the transaction, which can be convenient since all financing details are handled at once.
The Pros of Selling Vehicle to Third Party
The pro of selling a vehicle to a third party over a dealership is that, if you wait to find the perfect buyer, you may end up getting more for your trade. Note, that this is not always that case, but can happen if all conditions line up and you find that perfect buyer, who wants your particular vehicle. There is multiple ways you can sell - via classified ads, online ads, etc. This approach can be more time intensive, but if you have the time and resources for this option, this can be a good method for those that are interested in selling on their own.
The Choice is Yours
Ultimately, the choice is yours, whether you choose to trade-in your vehicle or sell it to a third-party. There are advantages of each and it comes down to what is important to you in your particular situation.