Planning to sell your old car? Wondering whether to sell it to a dealership or privately? You’re not alone. Hundreds of Canadians face this decision every month and we aim to help.
Our London auto loan team has put together a list of pros and cons to selling your old car to a dealership or privately.
Pros of selling your car to a dealership
There are definite upsides to selling your car to a dealership.
Fast and simple – Selling your car to a dealership or trading in is fast and very straightforward. Make an appointment, bring the car in for appraisal, let us inspect it, negotiate the offer, get paid. It’s that easy!
Guaranteed payment – Most dealerships will pay through the bank, which is completely safe. No bounced cheques, no payment reversals, no fake cash and no risk to you whatsoever.
Close to market value – Most dealerships pay closer to market value for old cars than ever before. The strength of the used car market means they can afford to pay more for your car while still making a profit.
Cons of selling your car to a dealership
There are downsides to selling to a dealership though.
Not quite market value – Even though dealerships pay more, they cannot quite pay market price otherwise they don’t make a profit.
Negotiating with professionals – Negotiating with professionals is both good and bad. Good because they are professional and won’t be unrealistic or try to bully you into accepting the offer. Bad because they are trained to negotiate!
Pros of selling your car privately
There are also benefits to selling your car privately.
Maximum market value – If every cent counts, you’ll still get slightly more selling privately than you would selling to a dealership. It won’t be as much of a difference as before, but there is a difference.
Wider market reach – Selling privately means advertising to hundreds, perhaps thousands of potential buyers. The lucky few could find people competing to buy the car, which could increase the value.
Sell modified, custom, vintage or classic cars – If you’re trying to sell a niche car, you’re better off selling privately. Whether that’s a modified car, something you put together yourself, a custom, vintage or classic car, most dealerships won’t touch this type.
Cons of selling your car privately
There are also downsides to selling a car privately.
The ad and the inquiries – You’ll need to write the ads, take dozens of pictures, handle emails and messages, answer dumb questions and perhaps dozens of calls about the car.
Tire kickers and test pilots – There are people out there who just want to waste your time or drive your car with no interest in buying it. This is especially true if you’re selling a performance car, custom or premium vehicle.
Risk of fraud or theft – Bounced cheques, reversed payments, fake cards or cash, theft during the test drive or something else entirely. Crime is definitely a risk when selling privately.
Now values are closer between the two types of sale, we have to say that selling your old car to a dealership now makes much more sense. What do you think, dealership or privately?
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!
For any questions or concerns, please don’t hesitate to contact us here!