When you are looking at buying a new car, there is always the question of what should I do with my current car? Do you sell it privately or do you trade it in at a dealers. There is no right or wrong answer but here we will talk about the positives and negatives of both options to help you make your decision.
Trade-in
Trading in at a dealership you are looking at purchasing your new car from can have many benefits that can really help you out. Trading your car in has a fair few advantages that can make selling your car very easy and stress-free but also a couple of disadvantages, here we will look at a couple that are the main advantages and disadvantages for trading in your vehicle.
- It is very easy
Trading your vehicle in is easy! If you are looking at buying a new car and go to the dealership to do so you can trade your current car in as a part exchange for your new car. This can act as a deposit for cars that are on finance meaning that your repayments can be less, or if you are buying a car outright it means you ultimately just have to add the rest of the money on top of the part exchange. It’s as easy as taking your car to the dealership, they evaluate your car, they then offer you what it is worth, you can either accept or decline and if you accept it goes down as a deposit.
- Paperwork
When you’ve part exchanged your car you don’t have to worry about all of the paper that goes along with selling your car, The dealership does all that for you making your life that little bit easier and allowing you to focus on getting into your new car. Could it be any easier?
- It’s quicker
There is no waiting around for people to view your car, it’s a quick and pain free and means you can get in your dream car even quicker!
- Condition
Even if your old car is a little bit older and less popular it today’s current car market you will still be offered something for a part exchange. This may not be very high but it can still be used as a deposit towards your new car. This can help take away some of the financial stress that comes into play when buying a car.
- Disadvantages
There are always a few disadvantages when it comes to trading in a car. Usually, it’s the amount you’d be offered for your car. It will often be less than what you would get if you were to sell it privately. This can often put people off as they think that the difference between what they would be able to get for the car if it was sold privately that what would be gotten at trade-in. This is where you have to decide what would be the best option for you and your situation.
Private sale
Private sales have again both positive and negatives depending on what you are more interested in doing and which one fits your current situation. Private sales are something that you have to set up yourself and can be very time consuming but can also mean you can sell your vehicle at a higher price.
- Price
The price when selling your vehicle is decided by yourself. This means that it will often be higher than what a dealership will offer you. This also means that when you come to sell your car there is room for negotiation which means you can say no if the offering price is too low. It also means that the cash will be in your hand to do what you wish with.
- Reach
This is about the people you want to advertise your car to. Websites now exist that you can sell your car that can now extend to people outside of your area, meaning that you will more likely have more interest in the vehicle and from a large area that has been covered with the use of auto sales websites.
- Time
Time can often be classed as a disadvantage as selling your car privately can take a long time. It means having to ensure you have the time for viewings. This also means having to take into consideration that when someone is looking to buy your car that there may be negotiations.
- Paperwork
The paperwork such as the V5C form has to be sent off once you have sold your car. This is something you will have to organise and ensure is done correctly. This can again be time consuming and has to be done correctly. It can just make selling your car more stressful.
Research is key.
You need to look at both options and decide which is the better option for you and your situation. If you are looking at buying your new car from a dealership and you want to get rid of your current car then trading it in is probably a good idea, It is easier and less time consuming as long as you don’t mind the possibility of it trading in at a lower cost. However, if you don’t mind the length of time it takes to sell your car privately and the extra work of having to sort out the paperwork then you may be able to sell it at a higher price but it all depends on what your situation is.
The Car Finance Companies provide you with a massive selection of used cars and vans. We are based in Liverpool, Merseyside but can deliver UK wide. Check out our stock range and give us a call on 0151 523 4000 to get started on getting that dream car today!