| November 30th, 2009 by admin |
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Retiring Your Clunker: Selling Versus Trading It In
Retiring Your Clunker: Selling Versus Trading It In
You’ve kept your car running as long as possible by keeping it well-maintained, and replacing failing parts. When the muffler rusted out, you had a new unit installed. When your catalytic converter was stolen, you replaced it. When the alternator failed, you had your mechanic swap it out with an OEM replacement. The time has finally come to retire your clunker. The question is, should you trade it into the dealer or sell it to a private party?
This article will explore the pros and cons of each path. You’ll discover that the decision is not always easy, and should only be made after carefully considering the most important factors given your priorities.
Advantages Of Trading In
When you take your older vehicle to the dealership lot, the salespeople will try to make it as easy as possible for you to trade it in. They do so for a few reasons. First, they realize that it’s inconvenient for you to sell your clunker to a private party. Second, they can use its trade-in value to obfuscate the cost of a new car.
Having said that, there are advantages to trading in your older vehicle. You won’t need to spend time placing ads or coaxing perspective buyers. Nor will you need to schedule appointments for test drives (which can be frustrating when many of those appointments turn into “no shows”). Another benefit is that trading your vehicle in allows you to get rid of it immediately; it may take weeks to sell your clunker privately.
To be sure, trading your car into the dealer is convenient, even if you’re unlikely to get the best price.
Advantage Of Selling Your Clunker Privately
The main reason many people sell their older cars to private parties is because they’re more likely to get top dollar. Unlike a dealership, the buyer has zero overhead and is seldom trying to make a profit by selling your automobile to another buyer. That means he or she is usually willing to pay a higher price (assuming your vehicle is in good condition).
The drawback of selling it yourself is the time and effort involved in doing so. As we mentioned, you’ll need to place advertisements and schedule test drives with prospective buyers. You’ll also need to make minor repairs to prep your vehicle for sale. Another factor that many sellers neglect to consider is their liability in the event their clunker breaks down after the sale. Each state has their own laws regarding the seller’s liability, so do your due diligence before settling the transaction.
So, should you trade in your vehicle to the dealer for a fast, easy, liability-free way to get rid of it? Or, should you sell it yourself? If price is important to you, and you’re willing to devote some time and effort, take the latter route. Otherwise, let your dealer take your clunker off your hands.
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