The most common dilemma facing new vehicle buyers is whether to trade their existing vehicle into the dealer or sell it privately. The answer to the question is determined by what kind of vehicle you own, the condition of the vehicle, the availability of time, and the financial implications.
The best candidate for a private sale is a popular model, equipped with the kinds of features shoppers want, in excellent condition with low mileage and all the maintenance receipts. This kind of vehicle will sell fast. If your current vehicle does not meet these criteria, you might want to consider trading it in.
A car dealership will accept any vehicle in any condition. They do not care about dents, dings, rust, rips, or stains in the upholstery. Even if the vehicle does not run, you can have it towed in as a trade. You obviously will not get top dollar for the vehicle, but you will rid yourself of the vehicle and all its headaches. Plus, trading a vehicle into the dealer is simple. In total, it takes all of 5 minutes and you can do it on your schedule any day you would like. There is no investment of time or money, and after a few simple signatures, the dealership takes care of all the paperwork.
On the other hand, selling the vehicle yourself will put more money in your pocket. However, most private party buyers will examine the vehicle top to bottom, inside and out. They will question the service history, accident history, the tear on the seat, and the wear on the tires. If your vehicle cannot withstand the scrutiny (or you do not have the disposition or time to handle the task), it may be wise to trade your vehicle in.
Selling a vehicle privately can take weeks. In addition to the cost and time to completing a Provincial safety inspection, it can take months if the vehicle is not in demand (a convertible with a manual transmission, during January, in Winnipeg, for example). During that time, you will have to invest in advertising and keep the vehicle clean as potential buyers will call to see the vehicle on a moment’s notice. You will need to be available to take test drives with prospective buyers or allow them to take the vehicle for a test drive without you. In most cases, you will not know that it is sold until the day the buyer arrives and takes it away. Once you’ve someone interested in the purchase, you will have to go to the registrar to process the paperwork.
As far as finances are concerned, the dealership will always offer you less than “trade-in” value for your vehicle. The reason is because a trade-in will either be cleaned up and placed on the dealer’s used vehicle lot for sale (and only the best trade-ins go back onto the lot), or the trade-in will be wholesaled at an auction. The dealer is spending money and time processing paperwork, preparing the vehicle for sale, transporting the vehicle to the auction, and absorbing other expenses. Therefore, the dealer will not pay much for a trade-in unless it is in near-perfect condition and will be an easy re-sell.
In nearly every case, the amount of money you would receive when trading a vehicle in will be less than what you would receive from a private sale. If your vehicle is only a few years old, this could be a significant amount of money. On the other hand, if your vehicle is in poor condition, or is a vehicle in low demand, or is a vehicle with high KM, it might be best to trade it in to avoid a major investment of your time and money. If you want to trade in your old vehicle and upgrade to a new vehicle, Mobile Auto can help. Just finish our online application, we will give you different new or certified pre-owned vehicle options.