Pros and Cons of Trading and Selling Your Car

 

Pros and Cons of Trading and Selling Your Car





If you are thinking of acquiring a new car, you have two options to carry out on your old car; you can sell it or trade it.  So, which one is better, trading it to the dealer, which gives you an instant deposit for your new car or selling it?  Let us examine the Pros and Cons of Trading and Selling Your Car.

 

Advantage of Selling a Car

 Trading a car

Generally, you can get a higher amount of money when you sell your car than trading it to a dealer.  The money you will acquire through the sale of your old vehicle will mainly be utilized to pay for your new car.  A private buyer will not mark your old car like a dealer, so you will get the most money out of it.  Private buyers are eager to spend more money that is closer to the purchasing price of the car.

 

Disadvantage of Selling a Car

 

Selling a vehicle on your own will never be that easy.  The process of selling your car does not only mean that you will put it on an online listing site to attract possible buyers.  It also means that you will have to allot time in meeting prospective buyers, test drives, bank transactions, and dealings with other financial companies.  While selling a vehicle on your own can give you more money, this also means that you have to exert extra effort when selling it.  Before deciding on selling your car, you might want to think about if the hassle of selling the car on your own is worth all the extra money.

 

Advantage of Trading a Car

 Selling a car

Trading a car is a lot easier process compared to selling.  You only have to take your old vehicle to the dealer, and the dealer will make an offer.  That amount of money serves as a down payment for your new car.  You are not required to handle any documents or paperwork; the dealer will do all of that for you.  It is as simple as driving in using your old car and driving out with a new vehicle.

 

Disadvantage of Trading a Car

 

The main disadvantage of trading a car is money.  As we mentioned above, you will not get a price close to your car's retail value primarily because the dealer has to sell it to a higher value to make money out of your vehicle.  Trading removes all the stress of selling your car, but you will also lose hundreds or maybe thousands of dollars in the process.

 

However, depending on your location, money may not be a big issue when trading your car.  In some states, sales tax is computed based on the trade value of the old car and the purchasing price of the new vehicle.  That means if you acquire your new vehicle for $20,000 and the trade value of your old car is worth $15,000, you will only pay a sales tax of $5,000.

 

 

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