We understand there are reasons to swing either way, that’s why we wanted to lay it all out there to help you make the best choice.
Why you might want to trade in your vehicle
1. Think of that sweet time you’ll be saving
Simply put, a trade in is fast and easy to palm off your used vehicle. There’s very little effort required on your side of things. If it’s a car you’re trading in, maybe get it detailed but otherwise rock up with the vehicle, come to an agreement on the deal and hand the keys over.
Selling your vehicle yourself can take more time and you will need to understand the market value of your car. Putting your car up cheaply may sell it quickly however you may be losing some value. The same goes for cars advertised at a higher price than market due to sentimental value: this could mean not being able to sell at all.
2. One on one
It’s just you and the dealer in this transaction. How nice is that? Only having to deal with the one person throughout the entire transaction. They’ll assist you throughout the process and then you’re one step closer to driving off in something new.
Trading in means there’s no need to advertise and meet with numerous potential buyers and organising the paperwork to transfer ownership.
Bonus: You don’t need to give out your contact details to strangers and let them test drive your vehicle.
3. Reduced loan size
If you trade in your vehicle, the agreed trade in price will be deducted against the cost of the one you are purchasing. If you require finance, you are able to deduct the value of the trade in from the loan amount, reducing the interest payable.
4. Avoid the challenges of going it alone
Selling your vehicle on the market by yourself can be challenging. Firstly, you need to pick which website you want to sell it on, with a wide variety to choose from.
Then there are costs behind advertising your vehicle, such as Carsales.com.au charges a $68 fee for cars over $5000, with the fee increasing as the price you want to advertise increases.
5. No need for tip top shape
Choosing to sell your car on your own means you would need to keep it in top shape as buyers will inspect the vehicle. With these potential buyers also comes potential questions you will need to answer confidently.
A dealer may be happy with a less than perfect vehicle compared to a private buyer.
Why you might want to sell it privately
1. More bang for your buck
One thing to consider when trading in your vehicle instead of selling it yourself is that it may mean losing the full potential value of your used vehicle. This is due to the dealerships trading in your car with the lowest payout, as they need to keep a bigger profit margin when they then resell it on the market.
2. The money is flexible
Selling your vehicle privately gives you some flexibility in how you choose to spend the money you receive from the sale. Most trade in deals can only lower the net cost of the vehicle or loan size of your next purchase.
Selling it on your own means that money can be used for anything else, whether it goes straight into savings, towards a holiday or your next vehicle purchase.
3. More power to you!
If you choose to put the money from your private sale towards your next vehicle, you also aren’t likely to miss out on the dealer skipping a discount for trading in your current vehicle. Keeping things simple means better negotiating leverage with the dealer.
4. For the collectibles
If you currently own a rare or collectible vehicle, you might not encounter the same difficulties as someone else selling a more common make and model of a vehicle. You also have more of a chance to receive the full asking amount – so don’t sell yourself short!
5. Room to negotiate
When selling privately, you can say no to a negotiation if the offer is too low and if you’re patient, you’re likely to reap the rewards. It may take a little longer selling it yourself, however you are able to be picky with the price and work harder for a better sale result.
With many websites also available to sell your vehicle, you are more likely to get the price you want through reaching a wide number of potential buyers.
So, are you thinking of upgrading your vehicle? Our car buying service may be the option for you. Mortgage Choice brokers can organise the whole process of trading in and purchasing your new car. Your new car gets shopped across a national network and then the trade in is organised. You can feel confident they you’re getting a good deal without the need to research and negotiate as well as set time aside to do it all yourself.
Contact your local Mortgage Choice broker today to find out more.