For most of us, our car may be one of the biggest financial investments of our life. So, when the time comes to upgrade your car, the question that would plague most of us (if not all) is whether to trade in our old car or sell it directly. While finding your next car is easy as long as you know what you want, the next part of the equation may confuse you which is selling off your car for a new one.
Trading in your old car versus selling your car directly has its own advantages and disadvantages, but which route you should take all boils down to your needs. So, to make it easier for you we’ve listed down the must-knows about selling your car directly and trading in your ride.
Selling Your Used Car Directly
When it comes to selling your used car yourself, there are multiple ways to go about it. You can either sell your car through a used car dealer or to a direct buyer.
Advantages of Selling Your Car Directly
Compared to trading in your car, you are more likely to receive a higher valuation for your car when you sell it yourself. You have full control of the price and if the situation permits, you can even wait out for a better price, one that you are satisfied with.
Apart from that, if you choose to sell your used car and buy a new car separately, your options for new cars are not limited to the cars available at the selected sales center only. You will have the freedom to find your dream car depending on your budget and the wide choices that you have. Therefore, it may be difficult for buyers to get the best and worthwhile car deals.
Disadvantages of Selling Your Car Directly
The whole process of selling your car by yourself is tedious. It requires patience, dedication, and sometimes it may cost more. Dealing with potential buyers or negotiating from one dealer to another to get a quotation that you are satisfied with can be time-consuming, and for many car owners, this process alone can take months.
That’s not all. There is also the negotiation process, while the legalities, as well as the terms and conditions, must be noted to avoid any dishonesty that could leave you with a shoddy agreement. Not to mention the paperwork that you will have to settle on your own (if you are dealing with a direct buyer).
Trading in Your Used Car
Trading in your used car involves selling your car and buying a new one from the same car dealer. The price of your used car will be used to offset the price of the new car, therefore making your new ride a much more affordable financial commitment. This might be the easiest way out of the two as it is the most efficient and convenient way to get rid of your used car.
Some car dealers might also offer a higher trade-in value for your used car which may be able to cover the down payment of your new car. This practice is known as overtrading and here’s an example to help you understand how overtrading works.
A new car (RM100,000) would usually require 10 percent (RM10,000) as a down payment. In overtrade, the seller (dealer) will raise the car price to RM104,000 and, at the same time, it gives RM4,000 more than what the trade-in car is worth.
Now, since the buyer needs a down payment of RM10,000 for the new car, he will now have an additional RM4,000 from his trade-in, making his down payment only RM6,000.
Trade In Advantages
When you trade-in your car, you will do it at the same dealership as buying your new car. Since the buy and sell process only happens at one location, this saves you so much time and cost as the dealer handles everything for you. Unlike selling your car yourself, which might take weeks to complete (from the advertising, entertaining request to view and test-drive the car, settling the paper works to fixing any minor defects), all you need to do here is hand in the keys to your old car, sign some papers and you’re done! It is also considered the safest option as all post-sale liabilities are transferred to the car dealer.
But do keep in mind that all this hassle-free convenience comes at a price, which is a lower sale from your car. This is actually quite reasonable if you think about everything the dealer would have to cover, from the costs to the risks.
Another advantage is the immediate benefit that you’ll receive when you trade-in your car. This benefit can be used to offset your new car’s price, making the down payment lower. The practice of overtrading as explained earlier also helps bring down the overall price of the car, which makes the whole process of getting a new car much easier.
Trade In Disadvantages
In terms of the downside of trading in your old car, the overall price for your trade-in would be lower than when you sell your car by yourself. It would usually be lower than the market value of your car.
Since these dealers are not used-car dealers, they would have to source for the price of your car from other used car dealers. Because of this, there is a high chance that you would not be getting the market value quote for your car. On top of that, if you trade-in your car at an authorized dealer, you will also have to pay the service charges.
So, Should You Sell Your Car Yourself Directly or Trade it in?
Regardless of which option you pick to sell your old car, it is first important to know the market value of your car to determine how much you can sell it for. The market value is determined but not limited to the mileage and overall condition of your car.
While getting the most out of selling your car is important, convenience and efficiency is also just as important and should not be overlooked. So, if you value time and a hassle-free process, you should opt for trading in but if you are not in a rush to sell your car and don’t mind doing things yourself, you should opt for selling your used car yourself.
Always remember, negotiation is the key to success (especially when it comes to selling or trading in your used car)
Buy, Sell, or Trade-In Used Cars at Carsome
If you want to find out the market value of your used car, you can get it checked at your nearest Carsome Inspection Center for free by making an appointment online. Carsome is a trading platform that buys and sells used cars online by offering a safe, fast, and fuss-free service.
- All transactions are done fuss-free within 24 hours
- It only takes 30 minutes to get your car inspected by our highly qualified inspectors for free
- Receive your payment in just one hour.
- No paperwork hassle
You can also find a huge range of Carsome Certified used cars that are available for sale at Carsome. You might just drive home with your dream Carsome car today!
Read also: Documents Needed To Sell Your Car