When you buy a new car, you can look forward to the excitement of getting behind the wheel of a new vehicle, as well as enjoying greater reliability and comfort. However, you also have to think about what to do with your old vehicle when purchasing a new one, and there are various options you may be able to consider.
One of the things that people tend to do when they purchase a new car from a dealership is to use their old one as a trade-in. They do this in a bid to reduce the amount they have to pay for the new vehicle but trading your old car in is not always the best choice. Some people just decide to trade in the vehicle without considering the alternative, but this is something you should think carefully about before you make your decision.
Consider Selling Your Vehicle
The other option when you are purchasing a new car is to sell your own vehicle yourself rather than trading it in for money off the vehicle you are purchasing. There are various reasons to consider selling rather than trading in, some of which are as follows.
01. You Have More Control
When you trade-in your old vehicle against the new one you are purchasing, you lose control of the process to some degree. This is something you want to avoid, as you could end up financially worse off. When trading in your vehicle, you have to go with whatever the showroom staff tells you with regard to the trade-in value, and this means you could end up worse off. In addition, there can also be delays when you trade-in as dealerships may have to sort out a valuation of your old vehicle, so you also lose control of the time the process takes.
02. Getting More for the Vehicle
Another thing you should keep in mind is that you could get more for your old vehicle by selling it yourself on the private market than you would if you traded it in. Even if you have to pay for advertising, you could still get considerably more by selling the vehicle, particularly if it is in good condition. So, before you agree to trade it in, make sure you look at how much you could get by selling it.
03. Avoiding Confusion
By selling your vehicle rather than trading it in, you can also avoid confusion with regard to the amount you are paying for the new vehicle. Ultimately, the changeover figure is the one you should want to minimise.
However, when trading-in and purchasing a car from a Dealer at the same time often the profit margins can be offset against each other and adjusted. So you may feel you are getting a better trade-in deal but you are doing so at the expense of paying more for the new car. This can happen the other way around also.
It can be confusing and it is easy to lose sight of the amount you end up getting for the old vehicle and whether you have actually bagged a good deal. By selling your old car yourself, you can keep the two processes completely separate and this makes it far less confusing.
It does require more effort, time and expertise to sell a car privately but you will maximize the selling price well beyond a trade-in value. Selling your car privately will also minimise your changeover costs of both buying and selling transactions.
04. Easier to Negotiate on New Vehicle
One additional thing to keep in mind is that it is far easier to negotiate on the price of a new vehicle when you are not already having money discounted due to a trade-in. You can sell your old vehicle and get money for it. You can then negotiate on the cost of the new vehicle, which means you can save even more money.
If you go into a Dealership knowing exactly what you want, one transaction is all you have to deal with to maximise your chance of getting the best price and outcome.Then it just boils down to dealing with the factors of price and quantity of cars available to you.
Need Advice on Selling Your Car?
If you need advice on selling your car, you can speak to our team at My Next Car Buying Advocacy. We offer a range of services that can help when it comes to the sale of your vehicle. You can also benefit from expert advice and assistance from those with years of experience in this industry.