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2.1
2.1
"Would I buy this car?"
"Would I buy this car?"
Selling your used car doesn't require a special touch; you just need to think like the buyer: "Would I buy this car?" and know what you plan to do with the proceeds. If you want to sell your car because you need the cash, you're better off to do it yourself. But if you plan to buy a new car with the proceeds, consider trading it in at a dealership --what you lose on the front-end you save on the back-end.
You'll never get a dealer to pay the same price for your car as you could get by selling it yourself. For cars in excellent condition, under $30,000, most dealers will pay approximately $1500 - $3000 below what private individuals are selling the same vehicle for. This is the dealership's profit margin after servicing and reconditioning the vehicle. The most you'll be able to haggle is a maximum $1500 more than wholesale price, but what you lose on the selling side compared to selling yourself, you can gain when you trade it in on a new car.
Private Sale vs. Trade In Example
Private Sale vs. Trade In Example
Here's how: say you could sell your car privately for $8,685 ($9,000, less $315 in expenses such as: repairs, safety inspection, advertising), but a dealer will pay you only $7500. Even though you can make $1,185 more by selling it yourself, you need to figure in the potential tax savings your trade in has. The dealer's $7,500 trade in carries $525 in GST tax savings, on your new car, which makes your vehicle's actual value $8,025.
If you sold your vehicle privately for $8,685, you made $660 by selling it yourself over trading in the vehicle for a new one.
For a $660 profit, you have to determine if it was really worth the effort and time to sell the car privately ?
For a $660 profit, you have to determine if it was really worth the effort and time to sell the car privately ?
Many vehicles are sold "as is where is." The seller makes it clear to the buyer that no repairs will be made prior to selling the vehicle. Very common practice for vehicles valued below $5,000.
Remember, it may take hours and hours of your time to sell the vehicle privately. What if it took 40 hours of your time? You may or may not consider this savings to be worth your time. Only you can be the judge. What is your time worth?
You can also sell your car by auction. Potential buyers dictate the price, but the seller sets an immediate sale with little responsibility.
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