Should You Trade Your Car in Or Sell It Privately?
Is it time for a new car? As new year models start to come out, it’s a great time to look at previous year models! Part of that process is selling your current car, which can be a challenge. Let’s look at your options, including advice from our very own Educators Vehicle Solutions® Vehicle Advisors!
Should You Trade Your Car In?
Trading your car in to a dealership is the most common way to sell your car as you move on to your next vehicle. According to Matt, one of our expert Vehicle Advisors, “The benefits of trading your vehicle in to the dealer are that you simplify your overall process of replacing/selling your car, and that the trade-in value is deducted from the price of the vehicle being purchased so you save on state and local sales taxes.”
However, keep in mind that you should go to the dealer knowing what your car is worth, so you don’t lose out. Educators Vehicle Solutions® offers trade-in appraisals, but you can also find the car’s value at a website such as KBB or Edmunds. You should mention the value to the dealer. If they offer you less than you would like for your car, try a different dealership.
Should You Sell Your Car Privately?
The common alternative to trading the car to a dealership is to sell it privately. Donna, VP of Vehicle Operations at Educators, had this to say about selling your car privately: “Look online for a Private Party value to help set your asking price.” You can find this value at websites like KBB or Edmunds.
Keep in mind that while you may make a little more money in a private car sale, you lose the sales tax savings that a trade-in at the dealership offers.
Selling privately also comes with some risk. Donna had this to add: “Be prepared to respond quickly to inquiries and be flexible with requests to test drive it. Take a photo of the person’s driver’s license and insurance. If they do not have insurance, you should not let them drive your car. Cash is preferable, but if they pay with a cashier’s check, to validate it you can complete the transaction here at the credit union or call the financial on the check. Do not reassign the title until you verify funds.”
Questions?
If you want to talk about your options with an expert, get in touch with our team at Educators Vehicle Solutions®! They can tailor personalized advice for you to help you decide what route makes the most sense for you.
Insured by NCUA. Membership eligibility required. Educators does not sell cars.