Is It Better To Trade In Or Sell?

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If your primary intention is to get the most money and time spent for selling is not important, it is better to sell a car privately.

If you want to sell a car quickly, or you are selling a financed car, it is better to trade it in.

However, if your goal is to sell the car as soon as possible, without any hassle and 100% secure, it is best to sell the car online to companies like Peddle, Carbrain or Wheelzy.

Way of selling	Average time	Selling speed	Pros	Cons
Selling privately	52 days + 15 hours of personal time	Slowest	Possibly the highest sale price	Time-consuming, no guarantee of sell
Trading in	From 4 hours to a couple of days	Rather fast	Convenience, saving on sales tax	Lower price, need experience in negotiating
Selling online	24-48 hours	Fastest	Quick process, no paperwork hassle	Lower payment

Trading In vs. Selling Privately: How to Make a Decision?

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When it comes to choosing the best way to sell a car, there are a few essential aspects to follow:

• Your car’s value and pottential earnings
• Time needed to sell

Calculate Your Car’s Value and Pottential Earnings

First you need to determine the current market value of your vehicle. You can do this by browsing similar car listings and comparing them to your own vehicle on websites like eBay Motors or Autotrader. In addition to that, you should check Kelley Blue Book car’s valuation tool, which will give you estimates of both the private-party value and trade-in value of your car.

Once you have estimates for the trade-in value and private-party value of your car, you can calculate the difference between the two options.

For example, if you are selling 2015 Honda Civic with 75,000 miles whichhas a trade-in value of $10,000 and a private-party value of $12,000, you would be able to get an additional $2,000 if you sold it privately.

How Fast Do You Need To Sell?

On average it takes 52 days to sell a car to a private buyer. However, this is just an estimate, and it could take longer than this average, your car’s value can depriciate during this time, or there may be instances where the car does not sell at all.

In addition to that you need to count the additional time you would spend to make a sale.

It is estimated that it can take anywhere from 10 to 40 hours of your free time to sell a car privately. If your hourly wage is the national average of $33.44, then you would be spending an additional $1337.60 to sell a car.

If you choose to sell privately, as in provided example above, the profit will only be a bit more than $600.

How Much Time You Need to Sell Privately:

Step	To do	Average time
Car preparation	Wash car & clean interior	Up to 2 hours
Valuating Your Vehicle	Find out market value	Up to 1 hour
Advertising	Take photos, upload listing	Up to 2 hours
Responding to Inquiries	Answer questions, negotiate	Up to an hour per interested buyer
Scheduling Test Drives	Arrange test drives	Up to 30 minutes per drive
Taking Care of the Paperwork	Finalize sell at DMV	At least 2 hours

1. Car Preparation (up to 2 hours): despite your decision on how to sell a car, you should wash your car and clean the interior first. On average automatic car wash takes up to 5 minutes, but if you aim to wash it yourself, you will spend at least 30 minutes. Cleaning the interior (removing the trash, vacuuming the interior, wiping down surfaces, etc.) will take at least another 1 hour of your time. This step is important because a clean car will add value, attract buyers and win their trust.

2. Valuating Your Vehicle (up to 1 hour): before uploading your vehicle, you need to conduct research to find out the market value of your car. This process is crucial, as price impacts both the success of your selling and your financial benefit, so you should spend at least 1 hour to evaluate your car’s market value.

3. Advertising (up to 2 hours): prior to uploading your car listing online, you need to take good pictures from various angles, as well as showcase the interior. Pictures are a crucial thing to attract potential buyers and increase the chances of selling. The next step is listing your car online. Write your car’s detailed description and list additional features. To reach a larger audience, it is advised to list cars on multiple websites.

4. Responding to Inquiries (up to an hour per interested buyer): the average time per potential buyer can vary depending on how interested they are in your car and how much negotiation is involved. It could take anywhere from a few minutes to an hour or more.

5. Scheduling Test Drives (up to 30 minutes per drive): on average, 84% of buyers test drive a vehicle before purchasing. The number of test drives you will need to arrange depends on multiple factors, but you can expect to spend at least 30 minutes per drive.

6. Taking Care of the Paperwork (at least 2 hours): if you have all the required paperwork, it can take a few hours to complete the documentation at DMV. But if you have lost your title, for example, you will need to apply for a duplicate title, which will take up to a few weeks to get. If your state requires a valid emissions test, you can spend another hour or so to get the certification.

How Much Time You Need To Trade In:

Step	To do	Average time
Value Research	Find out the market value of your car	Up to 1 hour
Dealership Research	Find the best dealer	Up to few days
Negotiations	Negotiate the sale and purchase prices	4 hours to few days
Paperwork	Gather and sign documents	Up to 1 hour

1. Value Research (up to 1 hour): first of all, before accepting any offers, you should research the market. Using Kelley Blue Book car’s valuation tool, you will understand the estimated value of your car’s trade-in. Knowing the estimates gives you an edge in negotiations and helps to stand your ground. This way, you can avoid signing a financially unfavorable deal.

2. Dealership Research (up to a few days): each dealership you visit will provide you with a different offer. To choose the best offer, you need to visit as many dealerships as possible. Moreover, you should take a deeper look into each dealership’s offer: read reviews online to find out about customer experience and potential scamming and find out if there are any hidden fees. 

3. Negotiations (4 hours to few days): the length of negotiations with a dealership can vary depending on the complexity of the deal, the demand and availability of the car, and your negotiation skill. Negotiations can sometimes drag on for as long as several hours, which is actually a sales technique that works really well. Most car shoppers become so worn out from negotiations they agree to a terrible price just to get it over with. You should prepare to spend at least 4 hours at the dealership.

4. Paperwork (up to 1 hour): dealership should take care of all the paperwork, but you still will need to spend some time gathering and signing documents. This includes signing the title over, filling out the bill of sale, submitting the release of liability, and canceling your insurance. All this process should take anywhere between 30 minutes to 1 hour.

Quick and Hassle Free Way to Sell A Vehicle

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If you want to obviate hassle of finding a buyer, negotiating price, and dealing with the paperwork the best way to sell a car online. Car buoing services like Peddle, for example, will buy your car for cash, despite the condition, year, mdel or mileage, and you get paid within 48 hours.

Steps and time needed to sell a car to Peddle:

1. Fill online form (up to 5 minutes): provide your car make, model, year, mileage, your zip code and describe condition.

2. Accept offer (up to 5 minutes): you will need to create an account or sign up via Facebook or your Google account, provide payment details and when to pick up the car.

That is all it will take, the rest of the paperwork and car’s pickup will be arranged by Peddle within 48 hours.

Pros and Cons of Trading in a Car

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Trading in a vehicle is a convenient option that allows you to transition from your old car to a new one in a single transaction. When you trade in a car, the dealership essentially buys your old car and deducts that amount from the cost of the new car you’re purchasing. 

This can significantly reduce the overall price you pay for the new car, but it’s important to note that the trade-in doesn’t reduce the actual sticker price of the new car. It only allows you to pay less out-of-pocket or finance a smaller amount if you’re getting a loan.

Pros of Trading in Your Car:

• Convenience – trading a car is typically a more straightforward and more convenient process than selling a car privately. You can drive in with your old car and drive out with a new one on the same day.
• Efficiency – you don’t have to spend time advertising your car, meeting with potential buyers, arranging for test drives, or negotiating the price.
• Financial advantage – if you’re buying a new car from the same dealer, the trade-in amount can be put towards your new purchase, reducing the amount you’d need to finance. In some cases, dealerships also offer promotional financing deals if you’re trading in and buying a car from them.
• Saving on sales tax – In most states, you only pay sales tax on the difference between the trade-in value and the new car price, which can save you a lot of money. 

Just as there are advantages to this method, there are also a few notable downsides that may affect your decision. Understanding these potential challenges can help you make a more informed decision about whether trading in is the right choice for you

Cons of Trading in Your Car:

• Lower Sales Price – the trade-in value is more closely aligned with the wholesale auction value and is estimated to be 10-25% lower than that of the private sale.
• Negotiation difficulties – dealers are skilled at bargaining and maximizing their profit margin. If you do not have negotiating experience, you may find the process stressful and potentially end up accepting a less favorable offer.
• Limited options –  You may have fewer choices when trading in your car, as you are limited to the dealerships that sell the brand and model of the new car you want or find dealers who will accept your car as a trade-in.

The average trade-in value is about 15% to 25% lower than the private sale value.

Pros and Cons of Selling a Car

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Selling a car to a private buyer can be a financially beneficial decision. It is estimated that by selling cars privately, you can get up to 25% more compared to trading in. 

Pros of Selling Your Car:

• Higher Sale Value – you may get more money for your car than you could get from a dealer or an online platform. You can set your own price based on the market value and your car’s condition and features.

• Flexibility – you have more control over the selling process, such as choosing who to sell to, when to sell, and how to advertise. You can also avoid any pressure or influence from dealers or salespeople.
• Independent Decision-Making – unlike when trading in, there’s no pressure to buy a new car immediately or from a specific dealer.

Cons of Selling Your Car:

• Time-Consuming – selling your car yourself can take a lot of time and effort, as you have to prepare, advertise, and show your car, as well as handle the paperwork and payment. It may take weeks or months to find a buyer and complete the sale.
• More Effort – selling privately can also involve some expenses, such as cleaning, repairing, or advertising your car. You may also have to pay for a vehicle history report, a pre-purchase inspection, or a title transfer.
• Risk of No Sale – There’s no guarantee you’ll be able to sell the car, especially if it’s an older model or has high mileage.
• Security Concerns – you can expose yourself to some risks and scams, such as fraudulent checks, stolen cars, or personal safety threats. You may also face legal issues or liabilities if the buyer has a problem with the car after the sale. 
• Payment Issues – the risk of payment issues, such as bounced checks or fraudulent payment methods.
• Transportation Gap – you may have to go without a car for some time until you buy a new one, which can be inconvenient and costly. You may have to rely on public transportation, ride-sharing, or car rental, which can add up to your expenses and limit your mobility.
• Loan Status – if you have an outstanding loan it will be difficult to sell car privately without paying off the debt

FAQ

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