7 Best Reasons to Trade-In Your Car or Truck Versus a Private Sale
When it’s time to upgrade your vehicle, do you sell your used car privately or do you trade it in at a Used Car Dealership? Here are the 7 Best Reasons to Trade in Your Car or Truck Instead of Selling it Privately:
1. You Make More Money on Trade-Ins
Prices Are Fair To All
Dealerships base your trade-in value on industry book value, ensuring the value you get is fair. According to Consumer Reports, Used Dealerships are more likely to give you a better value for your vehicle on trade-in, especially if it’s a popular model.
You Can Trade In Your Vehicle Even If You Still Owe Money
You can trade your vehicle in to some Dealerships even if you still have payments left. Certain Dealerships may roll what you have owing into your next vehicle’s loan at an even better rate. An OMVIC certified Dealership like The Car Lot etc can even look to find you a better rate on your car financing.
2. You Save Time
You Can Get an Appraisal For Free Online
The best used car dealerships allow you to get a trade in appraisal without even visiting the dealership. You just go online, upload some photos, and you are able to get an estimated Trade-In value . This is a simple process, and lets save time.
You Don’t Have to Get Used Car Package Ready for Buyers
You are required to prepare and submit a Used Vehicle Sales Package for Buyers. You have to pick it up at a Service Canada Centre or download it online.
3. You Save Money
It’s much faster and convenient to trade-in your car at a OMVIC certified used car dealership – you just go to the nearby dealership, hand over the keys and the dealer will handle everything for you. The Dealership takes care of certifying your vehicle (extra cost), doing the mechanical and physical upgrades (extra costs) it needs to be ready to sell to the public.
You don’t need to worry about this when you trade it in. You don’t need to create online classified listings (extra cost) and negotiate with buyers (strangers who take up your extra time). There is no dealing with tire-kickers or no-shows who just waste your time.
The used vehicle Dealership will also take care of the emissions testing (extra cost) ( A Drive Clean emissions test is required every two years for all vehicles seven years and older) . There are many other regulations to remember you are responsible for should you sell your privately. You can look on the MTO website. You can take some steps to raise the trade in value on your own or you can pass the expense on to the Dealership. The value of your trade-in goes towards the purchase of your next vehicle.
4. You Get Tax Benefits With a Trade-In
You’re Eligible For Tax Benefits When Trading In to A Dealership – You Lose This if You Sell Privately
When trading in at a Dealership, there is a significant tax savings. This is because you are only required to pay taxes on the price difference between the old car and the new car. However, when you sell privately you will pay full taxes on the sale (not always based on what you deem the sales price to be – but the black book value) and then you pay more taxes on your next purchase. When you do a Trade In – you ONLY PAY the tax on the difference between the Trade-In and your next vehicle. **You will pay less tax with trade-ins and more if you sell it privately and buy a new one.
5. It’s Much Safer To Do a Trade-In
There Are Dangers to Remember If Selling Privately
It’s important to remember that if you choose to sell your car privately, you will be dealing with strangers that you are giving your home address to throughout the buying process. You won’t have the peace of mind of dealing with an OMVIC certified Dealership.
Too often we hear of horror stories from people selling their vehicles privately. Whether it be receiving counterfeit money (even the new 20’s have been counterfeit recently), sketchy people, or the many tragic murder, robberies and abduction cases . In fact, in 2016 it was reported that over 100 people trying to sell their vehicles on Craigslist were murdered.
If you decide to sell your vehicle yourself, take safety precautions. Don’t end up like the thousands of Canadians scammed yearly.
6. There is Less Risk Trading In Your Vehicle
There Are A Lot Of Insurance Risks With a Private Sale
While a potential buyer is test-driving your vehicle – you are legally liable for his/her actions. If they are involved in an accident and damage the vehicle or hurt someone else or damage their vehicle in an accident while driving your vehicle – you are financially liable.
The vehicle you are selling privately will remain registered in the you the seller’s name until the vehicle transfer has been completed by the Buyer at ServiceOntario. You are be legally liable if the transfer has not been completed and you will be legally liable that buyer is involved in an accident or damages another person’s vehicle in a crash.
Be careful with test drives when selling privately. If someone get in an accident it affects your insurance and not theirs.
7. It’s Less Work To Trade-In Your Vehicle
Anyone who has ever tried to sell anything online knows that it takes a lot of time to create listings. You also need to negotiate with would-be buyers, set up test drives and compete with the other listings online. Not to mention, would-be buyers will try to low-ball your stated price.
To maximize the value of your trade in you will have to make any repairs, ensure the vehicle is certified and do detailing work. You will also need to arrange everything for the transfer. You will be responsible for the entire process, from posting it online, responding to people, to taking care of all the paperwork, and much more. This entire process could take months, and you may not get a confirmed buyer at all.
Downside To Selling Your Vehicle Privately
- More Costly
- More Time Consuming
- More Risk Involved
- Unsafe to Deal with Strangers
- More Taxes to Pay
If you need any advice, our OMVIC certified team at The Car Lot etc. would be happy to help. Curious what your trade in is worth? Fill out our free, no-obligation trade in appraisal form – it takes less than 3 minutes: https://www.thecarlot.ca/trade-in-appraisal/