- Posted 15 Apr
- 0 Comments
Unlike having to rifle through all the different car choices and car loan options when purchasing a new vehicle, there are only a few options when it comes to selling your previous one- privately or through a dealership. Here at Australian Credit and Finance, our goal is to make the process of buying a new car as easy and enjoyable as possible. Not only can we help with providing your car loan, but we wanted to provide helpful information when deciding how to sell your current vehicle.
What is Your Car Worth?
Do as much research as possible to determine the value of your car. There are many websites that offer free valuation and provide price guides based on selling both privately and through a dealership. Factors such as make, model, year, mileage, wear and tear, etc. will all determine the worth of your car.
It is typically better to sell privately as dealerships make their profit by buying for less than they sell it for after fixing any damage, detailing and selling it for you.
So why would you trade in your car when you could possibly pocket thousands selling it privately? Let’s compare the two.
While you may be able to make a better profit, it can still be costly to sell your car privately and could possibly take many months. Here are a few things to consider when selling.
- You will need to organise advertising for your car. Are you going to pay for an ad, use social media or hope for the best by just putting a sign in the window?
- How soon do you need a new car and how much time do you have for the process of selling yours? You will probably find yourself having to answer many phone calls, emails and arrange showings.
- Also consider that you will be competing with new car sales which, according to the Commsec Car Affordability index, new car prices are the lowest they have been in 38 years.
Dealership Trade- In
The convenience factor is why many people choose to trade-in their vehicle with the dealership. You can sell, buy, and fit your new car with accessories all in one place. You can finance through dealerships but you have to be careful as your interests are not usually in mind, as they are looking to make as much money from you as possible. Check out Australian Credit and Finance for car loan options before you settle for a dealer.
- A great point to remember when working with a dealership is everything is negotiable. If they are not offering you top dollar for your car, see what other areas are negotiable to make that money back.
- According to a recent Deloitte report, it is estimated that car dealerships main profits are made from parts and servicing. Negotiation points could be warranty, services, and extras such as tint, floor mats or navigation systems.
- If a particular dealership is not offering you the amount you think your car is valued at, shop around and see what other dealerships would be willing to give you.
While there are perks to both options, it mostly comes down to if convenience or money and time is of more importance to you. Check out our car loan options at Australian Credit and Finance to save you time, money and convenience on your way to purchasing a new vehicle.