If you've found yourself tempted by the thought of upgrading to a new vehicle, you may be wondering about the disposal of your old one. For those whose current car, truck, or SUV is still in good condition, selling this vehicle to a private party rather than trading it in to the dealer may seem like the better financial option. However, finding a private party purchaser who has the cash (or financing) on hand can sometimes be a challenge. Read on to learn more about the factors you'll want to consider when upgrading your vehicle.
What Factors Should You Consider When Weighing the Trade or Sell Decision?
When it comes to selling versus trading in, there are a few factors you'll want to take into account.
The first is the desirability and general resale value of your vehicle. Certain makes and models tend to hold their value quite well due to their high demand, low supply, or both. While an auto dealer may take this into account when quoting you a trade-in price on your vehicle, you're almost always likely to get more by selling it to a private buyer instead.
On the other hand, an older vehicle that's not in great mechanical shape may be harder to sell, and the hassle of listing it, communicating with prospective buyers, and haggling over a purchase price is usually far more trouble than simply dropping it off at the dealership and accepting a slightly lower purchase price for your new-to-you vehicle.
You'll also want to consider your ongoing insurance costs. Paying to insure certain vehicles, especially heavy-duty trucks and SUVs, can be pricey; and with prospective buyers likely to be test-driving your vehicle, you don't want to remove insurance coverage before it sells. By factoring in the amount you'll likely pay for insurance coverage during the days, weeks, or even months your vehicle may remain listed, you'll have a better idea of how much it's costing you to sell.
Finally, you'll want to ensure you're being realistic when it comes to the actual resale value of your vehicle. Computing its "blue book" value is a good way to start; if you've hoped to sell your vehicle for $5,000 but see that a similar vehicle in "excellent" condition is worth a maximum of $3,000, the $2,000 trade-in offer you may have previously been quoted by a dealership can begin to seem much more fair.
For more assistance, contact a business like Sammy's Enterprise.