If you have an old car that you’re no longer using, then it can be a hassle to continue keeping it in your garage. If this is the case for you, then you have two options: Either you sell your car or you trade it off for another car.
However, before you choose one over the other, you need to consider your choices first. With that said, below are the pros and cons of trading versus selling your old car.
Pros of Selling Your Car
Higher Sale Value
If you sell off your old car, you have a better chance of getting more cash out of it. Depending on where and how you sell it, the money you get from your old car will differ.
Of course, the fewer middlemen you have for selling the car, the more profit you’re going to get out of it. However, that means more involvement out of you too.
No Pressure to Purchase a New Car
According to CarBuyers Cash for Cars NZ, when you sell your car to a dealership, you will also receive less pressure to get yourself a new one immediately.
There are plenty of platforms out there that are open to buying your car without you having to worry about buying another car from them.
You can sell your car through traditional advertising or you can opt for a car buying platform to buy it from you. Either way, no one’s going to pressure you into buying a car you might not need yet.
By selling your car off, it means you hardly have to do any work once someone is interested in buying it.
There are even easier ways to reduce the amount of work you need to do when selling your car. For example, if you go to a car buying platform or service, they will do a lot of the work for you and they will pick up the vehicle themselves too.
Cons of Selling Your Car
Susceptible to Scammers
If you’re not used to selling off your car or if it’s your first time, then a lot of scammers can prey on you.
Even if you’re not new to the car-selling game, there’s still a possibility of you getting scammed out of a car and your promised money.
When selling your cars to individual buyers, make sure that you meet with them face-to-face first. Don’t hand them anything no matter what they say. Also, you should only accept cash as much as possible to be extra safe.
To be able to get the best price possible, you need to have some negotiation skills. Otherwise, you might be missing out on a good deal.
If you’re not used to being a salesperson, then you can lose out on how much money you could have gotten for your old car. Plus, if you push too hard on a price, you might have a hard time trying to find a buyer.
Pros of Trading Your Car
Trade and Forget It
The great thing about trading in your car for another car is that you don’t have to worry about it once it’s out of your hands.
If you’re selling your car, sometimes, the person who bought it from you will come back to you and complain about mechanical issues that come up with the old car. With a dealership, you will have no commitment whatsoever once the car is traded in.
Minimal Sales Tax
When you buy your next car, sometimes there is a sales tax imposed on you based on a fixed percentage. This can take a chunk out of your money.
If you are on the lookout for a new car and don’t want to pay a high sales tax, then consider trading your old car in.
Cons of Trading Your Car
Low Selling Price
When you trade-in your vehicle to a dealership, chances are that you won’t make much profit out of it. It wouldn’t even come close to being greater than the market value of your car.
Thus, you’re less likely to find big money from trading in your car.
Limitations and Stipulations
The stipulations of trading your car mean that you can only purchase your next car with your chosen dealership. However, if your dealership doesn’t have the car you want, then you’re going to have to look elsewhere for it.
This can be quite a hassle as well as limits your buying options.
Each option offers a benefit to you in one way or another. Plus, the choice for whether or not to trade your car or sell it sometimes depends on current the state of your car.
There are a lot of factors to consider, so it’s important that you check what these choices offer you.
You want to get the most out of your old car, after all, so you should use the pros and cons listed above to find which one suits your needs or preferences the most.