When looking for a new car, you might also try to make plans for your old one. For many families, now is a good time to trade the family car to a dealership. For others, selling a vehicle to a third party seems a better way to get more money for your vehicle. Financially, trading in your vehicle may be the best option.
Of course, this isn't an easy decision to make. You need to consider the breadth of your financial situation and the car you want to get rid of. These factors help you determine if now is the best time to trade in your car at the dealership or if you should decide to sell it instead.
Selling a Car Can Be Difficult
If you've opted to sell your car with help from the web, you may find that it takes longer than you expect. Selling a used car can be lucrative, but it can also be more time-consuming. For example, you must place ads online and take great photos of your vehicle. You'll also need to decide if you want to repair your car so it's in great condition or if you want to sell it as-is.
Additionally, you'll find yourself dealing with strangers, which can require additional steps. For instance, each person who looks at the car may want to test drive it. Even after investing your time, the other party could decide they don't want to buy your car. This can be a disappointing turn of events.
Of course, there are a few ways you can make selling your car simpler. You can always keep a "For Sale" sign in the car's window, letting the vehicle advertise itself when you park in strategic locations. Still, selling your car at your preferred price could take weeks or even months.
Supply and Demand Still Matter
When you look at a situation in which the supply of vehicles doesn't meet the demand, you're going to see the length of time your car sits on the market decrease. In the summer of 2022, the price of used cars appeared to increase. That means that you could potentially make more money selling your car this way in some situations.
It would help if you also considered the impact of the economy on how well your vehicle may sell. For instance, high inflation and rising costs of used cars mean that your car could be a hot commodity. The return you get from a car during rates of high inflation could be much higher than rates of low inflation.
Of course, it's still a good idea to check with a dealership if you already plan to purchase a new car. You may find that the dealership is willing to offer you a great deal on your vehicle as a trade-in based on what it may be worth on the lot.
Trading In Your Car Is Simple
While you may have heard stories about others who did not get a good deal when they decided to trade their car to the dealer, the truth is that this is still a great way to get rid of your car. The dealership will consider the market when it offers you a deal for your trade-in. So, if used cars like yours are in demand now, you may get a great price.
Trade-In Your Vehicle If It Needs Repairs
Trading your vehicle is also a lower risk when considering potential defects that could impact the transaction. For example, your car could have dents or a broken window. When you try to sell your vehicle to a third party, this can be a major detriment to its value unless you get it fixed first. On the other hand, a dealer will fix these issues on-site, so you don't have to worry about them ahead of time.
Manage Vehicle Safety Concerns by Trading It In
The bonus of trading your car to the dealer is that it can be used as part of your down payment. Instead of cashing a sketchy check from a stranger, you can count on the money to be applied immediately. You can even avoid paying sales tax on the value of your trade-in, which means you reap even more financial benefits.
Trade-In Your Car If You Have Positive Equity
If you have built positive vehicle and auto loan equity, it may be a good idea to trade your car right now. If you have a loan on a car and it is worth more than the amount you have left to pay, you'll be able to add that equity to your new purchase. You might also consider trading in your vehicle if you have recently paid off your loan, as the value of your car may still be high enough to take quite a chunk out of your new auto loan.
Now May Be the Right Time To Trade In Your Vehicle
When you trade your vehicle, you can avoid some of the risks of selling your car on your own. Additionally, you may find that it is financially a better idea to trade in your car based on the level of investment you want to put into the process. You may also find that now is a great time to sell based on the value of used cars and the current state of inflation and demand for used cars.
The best way to determine your next step is to get an appraisal and learn the actual value of your car. Sioux Falls Ford can offer more insight, especially if you have been shopping the current vehicle inventory and want to see if the business will buy your used car. Now is a great time to trade your vehicle to have the simplest experience for the most value.
*Image - My upgraded rental car by Kristina D.C. Hoeppner is licensed under CC BY-SA 2.0.
*Image - My upgraded rental car by Kristina D.C. Hoeppner is licensed under CC BY-SA 2.0.