Should I Trade in My Car or Sell It?

You've come to the end of the road with your car and you may be wondering if is it better to trade in or sell? The decision can be difficult to arrive at since there’s no single answer for all car owners. Deciding if it's better to trade in or sell comes down to what will work best for your current situation. To help you make the right choice, take a look below at the key things to consider as you prepare to say goodbye to your current set of wheels.

Selling Your Car Independently

There are some considerable perks to selling your car on your own instead of passing it on to a dealership. The biggest advantage is that you'll get a nice lump of cash in hand, and it will probably be a bigger lump than if you used a dealership. You'll also be more in control of the final outcome in the negotiations than you would be when trading in. Used-car dealers tend to stay firm once they make an offer. That means you'll need to compromise to get money that you can use toward your new car purchase. Selling your car independently means you can turn down any offers that are too low.

The drawbacks? Be prepared to put in the time and effort needed to sell your car on your own. That means doing your research to choose a listing price, posting your car for sale online, answering questions from potential buyers, and showing the car to potential buyers in person. You'll also have to handle all the paperwork involved with the sale. This can eat up a lot of your spare time but may ultimately be worth it if you get your asking price or close to it.

You also need to consider the timing if you choose to sell your car on your own. If you're in a rush to get funds for the purchase of a new car, trying to sell on your own could potentially hold you up. This is especially true if you've already identified the car you want and it’s waiting for you on a car lot. You could lose your new ride if you can't get the money together in time.

Be Smart About Safety

If you're not a natural salesperson, meeting up with strangers to sell your car can be an uncomfortable experience. In addition, you need to be wary of internet scams. Some scammers will try to work out "payment plans" with unsuspecting sellers after taking possession of a vehicle. In reality, they intend to stop making payments.

Sellers in these situations are often left with few options unless they have an airtight sales contract in place. The fact that the scammer paid "something" is often enough to allow them to claim ownership. Finally, arrange to meet potential buyers in "neutral" and busy public areas like a mall or supermarket parking lot, for example, instead of inviting strangers to your home.

Trading Your Car

Should I trade in my car or sell it? If you’re still debating this conundrum, one advantage of doing a trade-in is that you’ll save money on the new car you buy from a dealership. Another advantage: trading in your car can usually be done easily on the same day that you buy your new car.

Pretty simple, right? And for some private car sellers, that will be enough to solve the dilemma. You’ll probably get less than you would if selling your vehicle independently, but the entire transaction will be a whole lot easier. Another benefit of doing a trade-in is that the dealership will typically take care of the paperwork, including title transfer and registration. Of course, you may always be left wondering how much "you could have gotten" if you don't do your research before showing up at the dealership.

Do Your Research

You have everything to gain by knowing your current car's market value. It's important to know your car's value even if you feel pretty strongly about trading it in because having a number in your mind when you walk into a dealership will help you to know if you need to walk away. While most dealerships aren't flexible on trade-in offers, you always have the freedom to simply try another dealership if you think their offer is too low.

Knowing your car's current value is also important if you're planning to sell your car on your own. Pricing your car fairly will allow you to attract multiple offers quickly.

Wawanesa recommends looking up your car's value using the Kelly Blue Book (KBB). Next, decide if your immediate goals make it better to trade in or sell the car. You can then get to work on collecting any paperwork needed to transfer ownership of your vehicle. This includes items like title, registration, and maintenance reports.

A new car is always a good opportunity to re-evaluate how much you've been paying for car insurance. Wawanesa may be able to help you find a cheaper insurance rate after you acquire your new ride. Take a free price quote for a spin today to see how much you could save.