Is it better to trade in your old car or sell it outright? In many cases, you’ll come out ahead if you opt to sell your car on your own. However, it is not an easy thing to do, which is why so many people decide to let the dealer take care of their used cars.
Cleaning the vehicle: If trading in, just remove personal items. The dealership takes care of the rest. If selling, you will need to thoroughly clean the unit and get it detailed for sale. These costs will come out of your profit, so keep this in mind.
Repairing minor problems: If the vehicle has bad tires, a cracked or chipped windshield, missing knobs or other small things, or if it has scratches and/or small dents, you can leave as-is and the dealer will accept it. You might not get as much for the trade as if everything was repaired, but comparing replacement value vs. the wholesale dollars you recoup, it’s not worth it to go all-out in fixing “blemishes”. If selling the vehicle, however, you should easily recoup money spent in making these repairs. Do keep in mind that if the vehicle has several minor things wrong with it, repairing everything could severely cut into your net profits.
Legalities: When trading a vehicle, simply sign a few papers in the F&I office and the dealership will take care of everything. If selling a car, it is your responsibility to arrange the payoff on the lien. There will also be fees for notarization, title transfer, licensing and more. Since the laws vary from state to state, contact your local Department of Motor Vehicles to get info on everything that must be done to make it a legal sale.
Cleaning the vehicle: If trading in, just remove personal items. The dealership takes care of the rest. If selling, you will need to thoroughly clean the unit and get it detailed for sale. These costs will come out of your profit, so keep this in mind.
Repairing minor problems: If the vehicle has bad tires, a cracked or chipped windshield, missing knobs or other small things, or if it has scratches and/or small dents, you can leave as-is and the dealer will accept it. You might not get as much for the trade as if everything was repaired, but comparing replacement value vs. the wholesale dollars you recoup, it’s not worth it to go all-out in fixing “blemishes”. If selling the vehicle, however, you should easily recoup money spent in making these repairs. Do keep in mind that if the vehicle has several minor things wrong with it, repairing everything could severely cut into your net profits.
Legalities: When trading a vehicle, simply sign a few papers in the F&I office and the dealership will take care of everything. If selling a car, it is your responsibility to arrange the payoff on the lien. There will also be fees for notarization, title transfer, licensing and more. Since the laws vary from state to state, contact your local Department of Motor Vehicles to get info on everything that must be done to make it a legal sale.
