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Should You Sell or Trade in Your Used Car – 2024 Guide

It’s safe to say that everyone wants a new car. But what’s important is to find the right way to get rid of your existing car before buying a new one. And you have two options in that regard. You can either sell it or trade it in for instant cash.

But which option works best? Well, it’s safe to say that both selling and trading have pros and cons. In this article, we will take a look at that and hopefully try and answer the question.

With all that said, let’s start.

Pros and Cons of Selling

Source: smartplix.com

First off, let’s start with the pros and cons of selling your car. When exploring this option, it’s important to mention that everything has to do with money. Selling for cash is the only way to get rid of your old car before buying a new one. But there are a few things in between. Let’s find out.

Pro: Higher Value

You can’t sell your car and make a profit. Cars lose 30% of their value the moment you drive them from the dealership. So when selling your existing car, it’s all about getting the highest possible value.

There are a few things you can do to increase this value. You could have it fixed, detailed, etc. All of these actions increase not only the lifespan of the vehicle but also the overall look.

So whenever selling your vehicle on the market, remember that there are things you can do to increase the value.

You also have a few options on the table when selling the car. You could go to a dealership, sell it privately to a random person, or you could sell it to a website that specializes in that.

There are plenty of these websites that offer you a free online valuation that will determine how much you can get from your vehicle.

Cons: It Takes Time

Source: wikihow.com

Selling a car privately can sometimes take a lot of time. Maybe you’ve put the price too high or maybe buyers don’t like the condition.

There could be dozens of factors why your car isn’t selling. This is the biggest downside when it comes to selling any kind of vehicle. Since people will do everything to maximize profits and minimize risk, the obvious conflict of interests means that people will bargain and hassle over the price.

You might feel the price is justified, and rightfully so. But that doesn’t mean you can set unreal prices and look to rip off buyers. Luckily for them, they will not let you do that as every buyer has a pretty solid understanding of what they’re looking for and at what price.

This all means it might take months before you can sell your car. But there is a way to do it much faster.

Namely, it all has to do with those websites we talked about previously. These websites will not only give you a free valuation but can schedule an appointment and have everything done in no less than 30 minutes. So if you’re looking to sell your vehicle fast, make sure to visit cashyourcaruae.

Pros and Cons of Trading In

Source: mytukar.com

Now, let’s look at the other option on the table.

Pros: Easy Work

You will be surprised to find out how easy it is to trade in your existing car. This is probably the most important thing related to this kind of transaction. The way you trade in your car is by going to dealerships and asking for estimates.

The dealerships will then give you rough estimates as to how much your car is worth. And every dealership, so long as they are interested in your car, will be up for such a transaction. While the paperwork can be quite a hassle, the dealership will mostly take care of it as they are familiar with the process.

Whenever trading your car, make sure to lookup more than one dealership. Chances are some will offer you a better alternative and some might even pay off your existing car loan.

So this is something to always keep in mind.

Con: Not That Great Value

Source: kbb.com

Trading in might be a fast transaction, but it comes nowhere near worth to selling on your own. If you’re going down this path, chances are you will not make a profit.

The reason for that is because the dealership always looks to make a profit, and you can’t have both parties doing that. Whenever trading in, do know that dealers will give you an offer much less than your car’s wholesale price. What this means is that the dealer will pay you might less than what the car is worth when buying from the manufacturer.

So don’t expect to be making crazy bucks but do expect to get it done in no less than a week.

Should I Trade In Or Sell My Car?

Now that we’ve outlined the obvious pros and cons, it’s important to look at the bigger picture.

Selling a car is obviously better if you’re looking to get more money out of it. This can be especially helpful if you’re looking to buy a new vehicle. So the money from the sale can come in handy when needing to put a down payment for a new car.

On the other hand, trade ins are great if you’re looking to offload your car very fast. Sure the money might not be as much as selling on your own, but this option is great for those looking to sell fast.

So what’s the bottom line? Well, it depends on each individual case differently.

For some people, waiting for months to find the right buyer is well worth it. For others, not so much. So you should look at it and determine what works best for you.

If you think waiting for the right price is better than offloading for a quick buck, then go for it. If not, then visit a couple of dealerships and look at what each and every one offers you.