Should You Trade Your Car or Sell it Privately?

Should You Trade Your Car or Sell it Privately?

Have you tried finding yourself a good deal with a buyer but it just didn’t work or took quite some time? If you can relate to this, you could opt to trade your vehicle as an alternative option. Even though selling privately would probably return more money, if it’s not really working out for you then trading your vehicle in may not be a bad idea.

As a matter of fact, one of the prime benefits of trading in your car is that you save on tax. The cost of the trade-in would be extracted from the selling price of the vehicle you intend on making an investment in. What this does is reduces the taxable amount that would be paid on the new vehicle. While you could consider this a benefit in a way, below are a few tips you may want to keep in mind before trading the vehicle to the dealer:

Car Worth

Before you make your way to the dealer, make sure to do some research on the worth of your vehicle. You could either look it up the web or visit a local vendor to learn how much you can expect on the deal, after a little checkup perhaps.

Old Model

If you know for sure that your vehicle is on the verge of a breakdown, look for dealers that would help you with a minimum price on the deal. This is better than not receiving anything at all. Imagine having to scrap the vehicle after having invested so much into it.


This is your chance to up the deal. You could begin by bringing the vehicle in for a thorough wash, checkup and also repairs. Small initiatives like this could help you crack a good deal. Make sure to remove all personal items or rubbish from the car before giving it away.


Another way to win the dealer’s trust is by showing him a possible car record. This record could perhaps include any repairs worked on, paperwork or even the insurance for that matter.


You may also want to be prepared if the dealer only offers you a wholesale value on the car. Dealerships will not offer you the exact retail value of the car. This is done because the dealer needs to incur further costs on the vehicle, including inspection costs, sales commission, advertising, reconditioning, repairs and several others.


Do not rush into the process even if you’re in need of the money. By doing so, you could end up getting cheated in the process. Take some time to examine the dealership and their genuine nature. You could probably look up their website for reviews, testimonials or even speak to a few people as a source of reference. Be sure to speak to several dealers before coming to a decision. Chances are that you could receive a bigger deal from another vendor.