Should You Trade In Your Vehicle at a Dealership or Sell It Yourself?

So, you’re ready to trade up and move on from your current vehicle to something new. One of the first things to consider is what to do with your current car. You can either sell your vehicle yourself or take it to the dealership as a trade-in. It’s helpful to consider this choice from all angles so you understand the pros and cons of both options. Here are some important things to think about. View our inventory of New Chevrolets, or If you have any questions, give us a call at 931-548-1370 today!

Assess the Condition of the Car

It’s essential to carefully evaluate the condition of your car. Private buyers typically look for a vehicle in good condition, with no major issues with the vehicle’s functionality or aesthetics. If your car needs new brakes, tires, windshield wipers, or other parts, you’ll likely have to replace these before selling the car on your own. You’ll also need to deal with any cosmetic issues. This typically means having it detailed both inside and out to make the best impression. Though these are small tasks individually, they can add up to a major investment when preparing for a private sale.

If you opt for a trade-in, you won’t have to deal with the hassle of preparing your car for sale. You can leave these expenses to the dealership and opt instead to sell your car as it is. Dealerships are much more forgiving of a vehicle in need of a good cleaning or minor repairs. If your car is in questionable condition, or if you’re simply looking for the fastest, cheapest route to selling it, a dealership is likely your best option.

Check the Vehicle’s Value

Look up the value of your vehicle online for more information on what you can expect to get for it as a private sale vs. a trade-in. You can use this information to help inform your initial choice and also to negotiate on the final price, which you can do with both private buyers and dealerships.

If you feel a dealership isn’t offering you the deal you deserve, you can take your car elsewhere and gather competing quotes. You can even value your trade online with Stan McNabb Chevrolet of Columbia, so you have an idea of what to expect before you’ve even left the house.

Look Into Your Loan

If you financed your current car, it’s important to check on the status of your loan to make sure you’ll have the vehicle paid off before you intend to sell it. If you haven’t paid off your loan, you’ll need to do so to obtain the title if you want to sell your vehicle privately.

If you can’t afford to pay off your loan in one lump sum but want to sell your vehicle now, working with a dealership is your best option. Some dealerships will work with you to roll your existing loan into your new car financing while purchasing your old vehicle as a trade-in and paying it off for you.

Consider Your Time and Availability

How much free time do you have to dedicate to the task of getting rid of your old vehicle? Selling your vehicle privately may get you a slightly higher price, but it will also take more of your time. If this is time taken away from other lucrative pursuits, you should consider the dollar value of each hour lost to the task of selling your car.

When you’re managing a private sale, you’ll need to prepare the vehicle, list it, field calls from interested buyers, set up meetings, and host test drives. You may have to meet with several prospective buyers before you actually sell your car. If you can’t afford to purchase your next vehicle before selling your current one, you’ll also need to arrange for alternate transportation while you’re between cars.

If you don’t want to dedicate a lot of time and effort to selling your vehicle, a trade-in is the fastest option. You can get rid of your old vehicle and purchase a new one in a single transaction. This ensures that you can go smoothly from one to the next with no downtime in between, and you’re never without a car.

Check Your Credit Score

Take some time to check your credit score and see where you stand. This is crucial information when you’re thinking about purchasing a new car. A credit score between 670 and 739 is generally considered good. A score of 740 to 799 is considered very good, and any score of 800 and above is excellent.

If your credit score is below 670, you may have more difficulty securing a car loan. Lenders often require at least $1,000 or 10% of your new vehicle’s sales price as a down payment in these situations. A trade-in can go toward this down payment, increasing your chances of loan approval.

If you’re planning on selling your car privately, consider getting pre-approved for your next car loan. This way, you’ll know you have access to the necessary funds for a replacement vehicle before you get rid of your existing one. If you can’t get approved for a loan, and you don’t have the cash for another car, you may need to delay your sale.

Think About Tax Considerations

In some states, there are tax benefits to trading in your vehicle that you should consider before you decide how to sell your car. In Tennessee, if you trade in your car at a dealership, the value of the trade-in is subtracted from the total that you pay for your next vehicle. You’re only taxed on the difference between the two, so you pay less in taxes when you start with a trade-in. Be sure to account for these savings when you decide how to handle your used vehicle.

If you’re ready to trade in your vehicle, we can help. Bring your car into Stan McNabb Chevrolet of Columbia and learn more about what your car is worth. We also offer convenient financing options to get you from your trade-in to your new vehicle as smoothly as possible.