Is it better to sell privately V trade a car to a dealer?

You are in the market to buy a new car. What should you do with your old car?  When it comes to selling your used car, you generally have two options – sell privately V trade to a dealer. How do you make the decision to sell privately or trade? We have put together a Pros and Cons List to make the decision easier.

TRADE TO DEALER

Traditionally most people choose to trade a car to a dealer for a number of reasons. Primarily, it is convenience.

The Pros

• Saves time. Selling online takes time. You need to prepare and detail your car. Take good quality photos and write a compelling ad. Research the used car value to ensure your asking price is correct.  Be realistic with your price and compare to the same make, model, kilometres etc. Upload the ad, take and screen calls to determine a legitimate buyer, do inspections and finally negotiate and handle the paperwork necessary.
• No Roadworthy Certificate – there is no requirement and therefore no cost to have a roadworthy certificate done.
• Advertising costs are not applicable
• Your personal phone number or address is not being given to complete strangers
• Guaranteed payment
• No time spent waiting for people to show up or not
• Complete strangers are not driving your car and leaving you with a potential insurance claim if an accident occurs

The Cons

• Price, the price may not meet your expectations as it will always be a wholesale price when trading. It is possible however to ensure the wholesale price is the best trade price available if you do your research

SELL PRIVATELY

To sell privately V trade is becoming a more popular option. This is directly related to the success a seller has by advertising a car online. Carsales being the most popular marketplace to sell a used car.

The Pros

• Price, if the price is your main motivator and you have time on your hands then a private sale will earn you the bigger dollars on your used car. However, this is contingent on a few things. Popular models in good condition and with low kilometres will always achieve the highest prices
• Enjoyment of knowing you can with a little time and hard work make a little extra on selling privately
• On-line setup is straightforward but first time maybe a little challenging for the uninitiated

The Cons

• Time, this begins with the online setup and writing of the ad. Make sure you have accurate information about the year, make, model, VIN number, any extras like metallic paint, alloy wheels navigation system etc.
• Cleaning and detailing of the car.
• Taking and uploading good photos to the car selling site to show your car in the best light.
• In-depth research on the market to understand how your car compares to others. This will help with setting the price and negotiating the sale. Be realistic about your car’s condition and the price you set. The internet makes it very easy for buyers to price check. If your price is too high your car will sit and buyers will perceive there is a problem with it.
• Generally, you need to allow some time to sell a used car. Factors that influence this are the make, model, age and price of your car. The popularity of your car and how many people are actually in the market for your particular car.
• You need to organise the roadworthy, in your time at your cost.
• A roadworthy expires after 2 months or 2,000 km of travel
• Advertising cost
• It is a requirement you list your number publicly – possible security concerns
• Another possible security concern is it is a requirement for online selling that the number plate of the vehicle is clearly visible.
• Waiting around for prospective buyers to turn up or not is frustrating
• Have strangers drive your car and come to your home or business
• The stress of negotiating the price and doing the selling part of the process.

OUR OPINION

Sell privately v trade

When maximising dollars is the main goal affecting your decision to sell privately V trade. Then the answer is an easy one. Sell privately, this will get you more dollars than trading to a dealer. However, you need to have the time and the skills to sell your car to earn those extra dollars. Many people have great success others find the experience very stressful and not worth the time it takes to achieve the extra dollars.

We recommend if you want to sell your car privately then ensure you have the time, do your research on used car prices and have necessary paperwork and information required on hand.

If this sounds too much trouble then trading your car is the better option. However, you still need to do some research about used car prices yourself or seek some advice from a trustworthy source. This is something we can assist with if you don’t have the time. Knowing the value of your car ensures you know you are getting the best price when you trade. In addition, this information is critical when negotiating your new car price. What might seem like a great trade can be disguised as a higher new car price? Or vis-verser.

Our blog When is a good time to buy a car? End of Year! and The Car Buyers Checklist will give you more insights into selling a car and rethinking how you buy a car.

We believe buying a car should be one of life’s great pleasures.

Main Image Source Photo by Nikita Kachanovsky on Unsplash