Should you trade in or sell your old car?

If you’re thinking about buying a new car, you may be wondering what to do with your old one — should you trade it in or sell it on your own?

There are pros and cons to both options. Here are some of the things to consider when trying to make the decision that’s right for you.

TRADE IN YOUR CAR

PROS

1. Saves time. Everything is taken care of at the dealership and in one transaction.
2. Less hassle. The trade-in amount is deducted from the cost of the vehicle you’re purchasing — and this means less paperwork.
3. Sales tax savings. You’ll save on sales tax because you only pay tax on the difference.

CONS

1. Value. You may get less monetary value by trading it in. When it comes to how much your vehicle is actually worth, it’s pretty simple: Your vehicle is worth whatever someone is willing to pay for it and sometimes that can be more than a dealer will offer.

SELLING ON YOUR OWN

PROS

1. Value. Again, you may get more money by selling it on your own.

CONS

1. Repairing broken parts. Almost all buyers will want repairs done before purchase — leaving you with the cost to get things fixed.
2. Cleaning and detailing. If you were hard on your car, you’ll need to spend some time cleaning it, or paying someone to get your vehicle in perfect condition for selling.
3. More time and paperwork. Selling a car on your own means finding the right buyer and you handle all the negotiating and paperwork.

Tell me your last trade-in story. How do you feel about trading in vs selling it on your own?