Should I Trade or Sell My Vehicle? 6 Things to Consider

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The world loves its cars. The automobile comprises close to 75% of total motor vehicle production in the world. It means there is always someone who wants to know if they should trade or sell their vehicle. Here are six things to consider in this choice.

1. Your End Goal

The first thing to consider is the end goal. What is the reason you’re getting rid of your car? Do you want to drive another vehicle, or is the money needed for something else? If the answer is the latter, how would you get another car if you invested its profits into something else?

Make a practical decision. You can’t upgrade to a sportscar if you trade in a 20-year-old family sedan. Further, you won’t get the cash you need selling a barely driveable car. In the end, factor the below items to determine your goal.

2. The Car’s Worth

A question to ask yourself is “What is my car worth?” Sell it if it retains most of its original value. Conversely, look at a trade if its worth has considerably dropped since its purchase.

A quick internet search of used car sites helps determine the direction to take. It’s not uncommon for popular models to maintain or even increase their value. In recent years, pre-owned cars were worth more due to production issues.

Still, your car could be worth far less than the original price. It happens when the model receives poor reviews or needs constant repair. A trade works better in this situation.

3. The Vehicle’s Condition

The car’s condition is another consideration for trading or making a sale. You might be the owner of a Porsche, for instance. However, you won’t make much money on it if the buyer needs to tow it out of your driveway. The car must be somewhat operable to sell.

Like homeowners do when they prepare to sell their property, make sure your car is in the best condition possible. Get a tune-up and perform the necessary repairs before placing it on the market. If you can’t afford essential repairs, then consider a trade-in. You may end up receiving more in a vehicle swap.

4. The CARFAX Report

The CARFAX report details every repair and accident on your vehicle. If you purchased a pre-owned car, the document lists the previous owner’s damage and fixes. If the CARFAX report is different than your information, it signals problems for the buyer.

Order the information before you decide to sell your car. Check the report for underlying problems you never knew. If you find defects, forego a sale and try to trade the vehicle to get something for it.

5. The Hassle Level

A benefit of a trade-in is its ease over a sale. You take your car to the dealership and swap it out with a new model. Although there could be extra costs, the transition paperwork is easier to complete.

On the other hand, a sale is more involved no matter the situation. You haggle for the best price possible when you work with the dealership. Meanwhile, you encounter constant disappointment from private buyers that make false promises.

6. The Market

The need for certain vehicles varies by year and region. There are some areas in need of luxury automobiles. Conversely, buyers in rural areas want trucks and other four-wheel vehicles.

On top of this, there are cycles when pre-owned cars are in-demand more than newer vehicles. Recently, the lack of semiconductors, which help run a car’s internal computer, caused a run on used automobiles. In turn, prices rose as demand increased.

The economy also factors into the decision to sell or trade your car. Higher gas prices minimize interest for fuel-guzzling trucks and SUVs. Instead, people turn to fuel-efficient models, hybrids, or electric vehicles.

Closing Thoughts

These are all elements to consider in your decision. You must weigh your vehicle’s pros and cons and see where it fits in the market. Sell your car if you see a needed space. Otherwise, go for a vehicle trade. Use the suggestions above to plan your moves. In the end, they should help you find the right path to success.