http://askscott.ca/trade-my-car-or-sell-it-privately/ — Some people struggle with the decision whether or not to trade-in their vehicle or sell it privately. The source of this uncertainty may lie in the fact they believe they will get more for their car if they sell it themselves. In some cases this is true, depending on who the buyer is.
Basically, there are only three types of buyers for your car.
1. People you know.
2. Strangers.
3. Car Dealers.
Selling to a friend.
If you do your homework, you can sometimes get a little more for your car by selling to a friend or relative (because they know you and they know your car.) By homework I mean you will need to know what other vehicles like yours are actually selling for in your market. Once you have established a price you know is fair, and assuming your friend is willing to pay it, you have a deal.
Selling to a stranger.
If you decide to sell to a stranger, you also need to find out what your car is worth (retail). You then need to decide where and how to advertise it. (Online – Local Classifieds – etc)
When you are selling to a stranger, they don’t know you or your car. They may be shopping for the lowest price. If you are asking less than all the other sellers of similar cars, your phone will ring. If your car is in great shape and you want a premium price, it will take more work. Sometimes you may find a buyer quickly. Sometimes it can be a frustrating experience that only ends after trading at a dealership.
Selling to a Dealer.
When you trade-in your car, you are in fact selling to the Dealer. They will appraise your car and offer you a wholesale price. What is wholesale? This is what the dealer would have to pay for a car just like yours at a dealer auction. Hundreds of cars and trucks are sold at these auctions every week in Canada. Finance companies, banks, leasing companies, large corporations, and other dealers use these auctions.
Do dealers ever pay retail for your car when you trade it in? No, but the bill of sale may look like you are getting retail, depending on how your discount (if any) was applied to the offer to purchase.
To see the breakdown of the example used in the video, read the full article here;
http://askscott.ca/trade-my-car-or-sell-it-privately/
You may be surprised to know, many people are completely fixated on the amount shown for the trade instead of the difference they pay in the end, (the”total paid”).
Should you trade your car or sell it yourself?
I hope this video helps you make that decision. There are many good reasons why trading at a dealership makes sense. It is quick and easy. You don’t have to worry about any potential mechanical issues that may come up when you sell your car to a friend.
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