When you are ready to upgrade to your next car, your first thought may be to head down to your local dealership and trade in your old one. However, trading in your car can be a big mistake. Whether you are selling a Lexus or a Jeep, you should consider selling your car yourself through the secondary marketplace, such as your local classified listings.
Here are a few reasons why you should never trade in your car:
You’ll Get Less Money for It
After a dealership pays you for your trade in, it then has to mark the car up to sell it for a profit. You’ll always get less money for your car when selling it to a dealership than you would selling it yourself, even if it’s a popular model like the Jeep Wrangler. When you sell your car in the classifieds, you can make more than the dealership would offer you even by listing it for less than the dealership would sell. You’ll make more money and you’ll sell your car faster because it’s competitively priced.
You Will be Limited in Your Options
Some dealerships will not pay you cash for your car, but will only give you trade-in credit for it. If you need cash, this can be a big problem. If you are shopping for a new car, you will be limited by the selection at the dealership. When you sell your car on the open market, you can get cash, and you can use it for whatever car you want to buy or any other reason.
You’ll May Face Many Stipulations
Trading in a car isn’t an easy a transaction as it may seem. Some dealerships may limit the value they will offer you, or they may require you to use the trade-in credit toward a certain selection of vehicles. If you get cash, the dealership may lower the value. You may face a lot of stipulations for the transaction that will make it more of a hassle than just selling the car directly.
The next time you are ready to get a new car, don’t bother with trading in your car at a dealership. Just sell it directly in the classifieds instead. You’ll get more money for it, and you’ll be able to shop for whatever kind of car you like from any seller. The transaction will be less of a hassle, and you won’t be limited in what you can do.