Learn the Difference Between a Vehicle Trade-in and Private Sale

If you're ready to get a new vehicle but not sure what to do with the one you currently own, then you'll want to learn more about trade-ins and private sales. Both strategies have their respective benefits, so we suggest you compare them to determine which one is most suitable for you. For your convenience, we've provided information for each option below.

Vehicle Trade-in

The easiest method of doing away with your vehicle is to trade it in at a dealership. A professional will examine your model and appraise its value for you so you do not have to do the work on your own. Its estimated worth will then establish how much you can get from the dealer. Usually the amount will not exceed its wholesale price—that is, the price for an identical used car sold by a manufacturer or through an auction—but there is always room to haggle.

Additionally, there is a tax advantage because most U.S. states charge only the difference between trade-in and new car value. Once the sum is agreed upon, you can proceed to apply it to your next purchase or lease as a down payment, making the process a whole lot faster.

Value your Trade

Private Sale

There is more work involved with a private sale of a vehicle. However, you can potentially get more in return. To start, you will have to calculate the value of your model. For this procedure, you will want to utilize trusted resources such as Kelley Blue Book and Edmunds to see what the going price is for similar used cars, trucks, and SUVs in your market. After assessing its worth, you will have to place personal ads, correspond with prospective buyers, and provide test drives. As you are the seller, you have more room to negotiate the final amount.

Keep in mind, you may see an overlap in payments if you have yet to pay off your previous loan and will be subject to higher tax rates, so you will want to ensure the price you settle on covers your total expenses.

Service Your Vehicle

Speak with a Herb Chambers Representative for Further Assistance

You can always turn to the financial advisors at The Herb Chambers Companies should you have any questions pertaining to vehicle trade-ins and private sales. With their guidance, you can navigate your automotive financing with greater peace of mind. We also have web tools that can use to learn more about assessing the value of your model and steps to take on buying a new or used car. In this way, we strive to make your next dealership experience beneficial for New England drivers like you! So, let our experts assist you and get in touch with our team today! You can contact us online or by phone. Otherwise, plan a visit to an Herb Chambers dealership nearest to you and meet with us!