Whether you are planning to upgrade your car or simply want to exchange it for quick cash, you essentially have two options: trade it in or sell it privately. Both options have pros and cons, which is why it is important to thoroughly weigh them before making a final decision.
Trading in a Car
Trade-in refers to exchanging your current car for a new one through a dealership. The car dealer determines your trade-inss condition and value and then quotes a price which you can use to purchase a new vehicle from the dealership. The trade-in value is calculated by the make, model, age, mileage and overall condition of the vehicle. the
What are the Pros of Trading in Your Car?
Saves time and Headaches
When you are responsible for selling your car independently, you will have to ensure it is in top condition to attract buyers. This could mean spending hundreds of dollars fixing its appearance and resolving any issues that might be present, only to find that the party is not interested. You also have to spend money on advertisement to reach potential buyers, and go through the hassle of meeting strangers and spending countless hours showing them the vehicle only to have them give you a lowball offer. On top of all this, you are responsible for handling not just the financials but the DMV paperwork as well. This DMV paperwork is just as important as the finances since it is the state mandated paperwork and releases you from liability once the new driver takes off with the car! However with a trade-in, dealers are usually responsible for providing any fixes or maintenance that the vehicle might require, they will save you time with a quick offer, they will provide all DMV documentation needed, and handle the payment as well thereby saving you plenty of time, money, and hassle.
More Trustworthy
Selling a car privately always comes with a certain level of risk, uncertainty, and even danger. With scammers getting more creative by the day, and the uncertainty there is with meeting strangers to exchange goods, it is best to stick with a trustworthy dealer who can take care of the entire procedure, including the paperwork and handling of money.
What are the Cons of Trading in Your Car?
Lower Offer
Car dealerships have a profit margin of their own on trade-in cars, which might slash the value of your current vehicle. However, this low offer is usually compensated by the advertising and maintenance expenses that you save since the dealer bears those costs.
What are the Pros of Selling your Car Privately?
Higher Offer
The biggest benefit of selling your car privately is that it brings in more money due to the absence of a dealer’s profit. You can also look for the best buying party and determine your market value, allowing more peace of mind.
What are the Cons of Selling your Car Privately?
More Work for You the Seller
Selling a car privately requires much more legwork than a trade-in. These include frequent trips to the mechanic, gathering all the necessary documents and maintenance records, deciding a fair price value, paying for advertising, screening the right buyers, and going on test drives. All this is followed by even more paperwork and legalities which can be quite time-consuming and stressful.
Higher Probability of Getting Scammed
While selling your car privately, the possibility of encountering a scammer is high and disadvantageous. Because they offer a higher buying price, it can be tempting to escape their ill intentions. Not only does this waste a lot of time, but it also comes with the risk of you losing large sums of money. Trade-in dealerships have trusted contacts and reliable buyers, eliminating any possibility of fraud.
Negotiations
While negotiations are not always bad, they still involve a lot of back and forth and will usually mean a compromise on your asking price. If you are not a very good negotiator or uncomfortable with the process, you might end up losing money on the sale, which can make all your previous efforts go to waste. Trading in your vehicle prevents this problem as the price is already determined, and there remains no room for uncertainty and fluctuations.
Taking into account the pros and cons of both options, it is safe to say that trading in your vehicle has more to offer than selling it privately. Besides saving time and money on advertising, screening, and test driving, there is also the certainty and a low-risk factor involved. The biggest advantage, however, is the ability to trade in your vehicle even with a poor credit score. You no longer have to worry about paying your current loans and waiting for the lender to hand over the title.
Why Trade In Your Vehicle with FA Financing?
At FA Financing, we have a collective experience of 20+ years in handling bad credit and subprime auto lending in the San Diego area. With our diverse vehicle inventory and range of services, we can help you trade your car at best possible market value in exchange for a vehicle that best suits your needs. Our procedures are highly transparent, and we collaborate with a wide variety of professional subprime auto lenders. We also accept virtually all models of cars and will assist you throughout the process.
Contact us today for more information about our services, and we will be happy to help you.
