You have decided to buy a new car and thought that the best way to deal with your current one is to trade it in. Most of the time, trade-in is a one day process. So there’s less hassle for you. Trade-in may or may not be the best option, so read through the following facts and decide.

The most important question you should ask next is, how much is your car worth? With this in mind, remember that you’re after your car’s trade-in value or wholesale value, not the retail value. There are many books and online guides that you can use for a rough estimate.

Keep in mind that since car dealers mean business, they will most likely not offer you the exact value of your car. Most dealership will offer only about eighty five to ninety percent of the car’s actual value. So to give you an idea of the actual value of the car, you can visit different dealerships, average their offers, and add on ten to fifteen percent. The result should be, more or less, the value of your car.

You will get lower amount if you trade-in as compared to selling your car in a private-party sale. But with trade-in, you can save time and energy. So think of trade-in as the lesser of two evils when it comes to giving you headaches. It is about convenience. No paperworks, no direct contact with customers, and no ads to worry about. So if you don’t have time to spare or if you don’t have skills in marketing, then it’s best to trade-in. You can also have tax benefits if you are going to buy a vehicle at the same time. The formula is:

Trade-in value – Price of the new car = Payable sales tax

This means that if the trade-in value of the car is $5,000 and the price of the new car is $10,000, you are required to pay the sales tax on the $5,000 difference.

On the other hand, selling your car in a private-party sale guarantees bigger cash. The down side is, this will take time and in most cases, money. The first step is for you to determine your car’s worth. You can check magazine ads on used cars and the Internet to help you determine the local market pricing. Once you’re done with the first step, the next thing you need to do is publicize or advertise your car. Most private-party cars are sold through local used car publications. Start here and advertise in multiple sources later on. After you have placed your ads, expect phone calls, schedule hassles, and competing offers. And when you finally have a buyer, you will have to transfer title and registration and cancel your insurance on the car.

Selling in a private-party sale is a straining task. But if you have contacts, time, and patience, you will benefit more in selling your car yourself.

Tags: nationwide vehicle delivery, car locator service, deals in Wisconsin

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