“Should I sell my car?” Maybe you should trade-in your car? We’ve all asked ourselves these questions at some point in time. You’ve had your car for a few years, and you’ve decided it’s time for a new one. Sure, your current car is fine, but maybe you want one with a newer infotainment system or the latest safety features? It could be you’ve just outgrown your current vehicle, and you need one that fits your lifestyle better, either moving up to a larger SUV for a growing family or downsizing to a more economical crossover or sedan as your children have grown up and gone off to school. No matter the reason, we all come to a point where our current car needs to be replaced.
There are relative benefits to selling your car as well as trading it in. As you will see, selling your car may give you more money, but like anything else in life, everything comes at a cost. That is why you should consider trading in your car for a new one. When the time comes when you want to sell or trade-in your used car, stop by our dealership. At Richard Lucas Chevy, we buy all makes and models of used vehicles whether you have a sedan, sports coupe, pickup truck, minivan, or SUV. Stop by and let us show you why you should trade in your old car for a brand new Chevy with all the latest features you want in a vehicle.
Valuing Your Used Car
Every vehicle has a cash value, which you can find by going to certain vehicle valuation websites like Kelley Blue Book. This will let you know what you should expect to receive in a private sale, meaning if you go to the trouble of placing an ad in your local paper or on a website like Craig’s List.
The basis of the price comes from a number of different factors. First is your used car’s make and model. Some automakers build cars that hold their value better than others. This often depends on service reports, recalls, and other things that show whether the car in question needs more maintenance as it gets older. The fact is that some makes and models are more reliable over time than other ones. Also, certain models are more desirable than others. If a car has been discontinued, a brand has gone out of business, or an automaker overproduced a certain model, this will all go to reduce the resale value of the car in question. With respect to discontinued models and defunct brands, buyers are often concerned that they may not be able to get spare parts for service. As for overproduction, this has to do with supply and demand as an overproduced model may flood the market.
The next key factor is age. This consists of two things: actual age and mileage. As a car ages, it depreciates. Depreciation is the amount of value lost over time. In addition, a vehicle with more mileage will be less desirable to a buyer as it is more likely to require service than one with less mileage. Over time and use, certain parts of a car will fatigue and break down. Unless you are selling a rare vintage model, age is not a good thing when selling.
The final factor that will affect the resale value of your car is its condition. If you have had major repair work or even too many scratches and dings, then you are not going to get the best price possible. People want a used car in good condition, and if you have ridden your car hard, then you are not going to get top dollar when you go to sell it.
Selling Your Used Car
The rule of thumb is that you usually get more money when you sell your used car in a private sale than you do from trading it into a dealership. But, here is something to keep in mind when selling a used car: you are probably not going to get the Kelley Blue Book price for it, even from a private buyer. The person you are selling your car to is going to take the car out for a test drive and probably have a mechanic take a look at it. Get ready for some hard bargaining!
Selling a car is also a major hassle. People are going to be calling you all the time, asking you questions about your used car. This can get very annoying very quickly. You will also need to complete all the paperwork for the sale yourself unless you have a lawyer friend willing to help you out. This means transferring title, putting together a bill of sale, and canceling your license and registration. You’ll even have to remember to take off your license plates, or you could be liable if the buyer has an accident in the car you just sold them. In addition, you have to make sure the new buyer has secured registration, insurance, and license plates for the car you are selling.
As you can see, there are so many ways that this entire transaction can blow up in your face. You might have issues with the paperwork. The check from the buyer might bounce. You might not be able to sell your old car in time to get the cash to use it as a down payment on your new car. This is without getting into the horror stories about people who tried selling a used car to someone who turned out to be a criminal. Do you really want to deal with all of these problems?
Trading in Your Used Car
If you want to avoid all of these hassles and make sure that you are going to be able to use your old car as a down payment on your new one, then the only answer is to trade it in to a dealer. When you bring it to a dealer, you won’t have to get a headache trying to fill out the paperwork. Our team of professionals will take care of that for you. In addition, the trade-in value of your old car will reduce the price you pay for the new car. Since the dealership is looking to make the deal, you can count on getting a good valuation for your car.
There is also a sales tax advantage in trading in your used car. When you use the cash from the private sale of your car, you still get hit with the sales tax on the entire purchase price of your new car. This even applies if you are leasing or financing the new vehicle. However, New Jersey only charges sales tax on the difference between the price of your new car and the trade-in value of your old one. This can translate into some serious savings simply by trading in your car rather than selling it.
Just think about it. Rather than having to sit at home waiting by the phone and dealing with a veritable parade of strangers that comes with a private sale of your old car, you can simply drive into the dealership where you are buying your new car and in one stop get your old car traded in for a new one. What can be easier than that?
Make the Trade and Avoid All the Hassles
There is an old saying about being penny-wise and pound-foolish. Whoever came up with this phrase must have been thinking about people who insist on selling their old car instead of trading it in to a dealership for a new one. While you may think you are getting a better deal by selling it yourself, it is actually going to take you a lot of time, which is actually more precious than money. You also may lose some of that money to sales tax, which you may save by trading in your old car instead. And by trading your car into a dealership, you will avoid all the pitfalls and problems associated with selling a used car. Stop by our dealership today with your old car and use it as a down payment on a brand new Chevy from us.