The many different ways of selling a car

Learn about your options when getting rid of your old car.

If you are planning on selling a car, you have a few options before you. You can trade-in your old car for a new one, you can sell it to a dealership, or you can sell it yourself. Each option has benefits and drawbacks, so you need to carefully decide which is best for you when selling a car.

Trade-in
Trading in an old vehicle is the most common way to get rid of an old car when buying a new one. It involves taking your car to the dealership where you are buying your new car and letting the dealer tell you how much they will give you for it. However, this is not necessarily the best option when selling a car.

Pros:

  • Convenience. This may be the easiest method for selling a car. It requires limited preparation on your part, and the dealer takes care of the transaction for you.

Cons: 

  • Less money. You don’t get the true value of your car. The dealer plans on making a profit and, therefore, prices the offer based on that. Also, the dealer will have the car detailed and will factor that in to how much to give you for the car.

Sell to a dealership
Another option for selling a car is to sell directly to a dealership without purchasing a new vehicle at the same time.

Pros:

  • Convenience: When it comes to selling a car, this is still a pretty easy option. The dealer takes care of the transaction, and you make a little more money than you would if you traded the car in.

Cons:

  • Less money: Even though the dealership will likely pay you more than if you were trading in the car, you still will not make as much as you would if you sold it on your own.

Sell it yourself
A third option for selling a car is to simply sell it yourself. With the abundance of Internet sites such as www.autoextra.com available to you, selling a car on your own has never been easier. You will need to prepare the car yourself with a lot of sweat equity: Clean it out, wash it, and detail it. You will also need to take care of all of the paperwork involved with the sale.

Pros:

  • More money. You should be able to make $1,000 to $2,000 more (in some cases even more than that) than you would with a trade-in. Selling a car yourself is the best way to make the most money on the sale.

Cons:

  • Inconvenience. Not only do you have to show the car to prospective buyers, you also have to take care of all of the legal paperwork. While this is manageable, the dealership would handle all of that for you in either of the other two options.

Making a decision
Just like all other financial decisions, when it comes to selling a car, it is important to weigh your options and analyze your situation. Do you want to make the most money possible on your old car or is convenience worth a couple of thousand dollars to you? Examine the pros and cons of each option before reaching your decision the best method for selling your car.

 

Published on March 01, 2007
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