It’s common to hear people lament about the loss of hundreds, if not thousands of dollars, trading in their cars to a dealership. Convenience, obviously plays a huge factor —drive in with a used car and drive out with a new one. But when it comes to large differences in fair market value and what the dealer is offering you, why give away free money?
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Losing money on a dealer trade in has become pretty much an accepted norm.
So why people so readily accept a loss when it comes to selling their cars to a dealer? Let’s look at the psychology driving this behaviour:
Convenience and ease
Drive in with your old vehicle and drive out with a new one. The convenience and ease, compounded by the excitement of getting into a new car often clouds one’s judgement and decision-making. Let’s face it, buying a new car is an emotional event, whereas, selling one is often less than enthralling. The trade-in value and seeing it lower the MSRP, the new car smell, followed by the test-drive. Dealers know all this and are already calculating their margins as soon your drive in.
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Savings on Tax
Trading in your car allows you to avoid paying more tax. This makes sense for instances where the fair market value and dealer valuation are not too different. Depending on where you live, you’ll only be required yto pay tax on the difference between your trade-in and MSRP of the new car. Whereas, in a private sale you;’ll need to pay the tax of the one you’re selling and on the new one you’re buying.
Avoiding Private Sales
Dealing with private sales isn’t easy. You need to list your car, which often comes with a cost, deal with potential buyers (if there are any), while conducting test drives and the uncomfortable aspect of price haggling.
How to get more from your used car sale
The major drawback when it comes to trading in your car is money. Simply put, your vehicle is only worth what the dealer is willing to give you, and there is little room for negotiation. Factors that affect trade-in-value include:
The rise of online car sales marketplaces—like ours—makes it easier to sell your car without having to deal with the inconvenience of a private sale.
- We do all the work of private sale for you
You avoid all the hassles of a private sale when you sell with a marketplace like ours. No pictures, no listings, no haggling with strangers, no settling for OBO. Get your online valuation based on the current condition of your car and when you’re ready to sell we’ll do all the heavy lifting.
- Have buyers compete for your car
We work with pre-qualified buyers who bid on your car. We then send you the best
offer. Once you receive your offer, you can accept it or decline it. There’s no obligation and no cost.
- We pick up your car
Ready to sell? Click that sell button and our Autozen experts will come to your home to inspect it and drive it off to its next owner.
If you’re looking to sell your used car and slightly miffed by the thousands in dollars less you were offered by your dealer there are options like us. Get your online valuation today and don’t let free money slip away!
You may also be interested in our information as:
- How to Sell Your Car for the Most Money Possible in Canada
- How to Maximize Dollars & Minimize Time When Selling a Car
- Innovator’s Dilemma & Interview with Olivier Vincent
Good Luck to You 🌊