Should I sell my car or trade it in privately? This is a question you’ve probably asked yourself at some point in your driving career. Each option has their benefits, downfalls and it’s different for everyone. When you’re selling a used car your obviously looking for the best deal possible, and each option can be a good one under the right circumstances. Here are some reasons to consider trading in your used vehicle.
Benefits of Trading in
Trading into a used car dealer can be much more convenient. All you have to do is drive to a dealership, sign a few papers and drive away in a different vehicle. Most dealerships will offer on the spot free vehicle appraisals.
Lower The Cost
Depending on the vehicle, a trade in can significantly lower the cost or payments of your new vehicle. The credit of your used vehicle can be used to not only lower the price of the car, but also the payments and tax. Tax is applied to the price of the car after the trade in credit is subtracted. So if you’re trying to buy a $20,000 vehicle, and your current vehicle is worth $6,000, you’re only going to pay tax on $14,000.
Get More Than Wholesale
Depending on your vehicle it could be desirable to a dealer. Certain colour schemes, trims, years and models are valuable to dealers. If a dealer would already pay over wholesale price this is the best case scenario. Do some research on your current vehicle before trading it in to get a vague price range. Canadian Black Book is a good resource to check for valuations of your vehicle. At S.A.S.S, we believe in full used vehicle price transparency.
Risk of Selling Privately
Selling privately will often be the best way to get the most money for your car. Often selling privately can be quite the hassle. There’s a solid amount of paperwork from the bill of sale, tax to the Used Vehicle Information Package (UVIP). If you’re selling privately through a third party site such as Kijijii or Facebook, you can’t be sure who’s on the other end of the deal. By going to a used car dealer, you can be sure that you’re not falling victim to a scam or any criminal activity. If you’re buying privately, we highly recommend you get a third party mechanic to check over the vehicle before any purchase or purchase agreement.
Lower Outstanding Loans
In some cases, trading in your car can help you get out of a current financing situation. Using a credit from your trade in can be used to pay off outstanding loans, while refinancing a “new” used vehicle. This isn’t always the case but is something car dealers can help you deal with.
Trade in Your Used Vehicle
Trading in your used vehicle has its benefits and shortcomings. By trading it in, you can lower the tax you’ll pay on the new vehicle. Your trade in value can be used to help pay off outstanding loans on your current vehicle. Depending on the car, you can still get a fair price for your asset. Lastly, void the hassle, risk and paperwork of a private sale. At S.A.S.S Auto Group, we rely on quality trade ins to keep our indoor showroom of used cars in Guelph at capacity. Contact us today or visit our website for more information on how we can help you get into a new car.