If you need to sell your car, you need to weigh up your options. Both options offer their own advantages and disadvantages and you need to evaluate what will work for you. We’re here to help you weigh up whether you sell to a dealer vs a private sale to a private buyer.
Why Sell to a Dealer?
- Convenience: More often than not, when you buy a new car the dealer will buy your old one. This means that your old car will discount your new one, and it’s all done at the same time. The ease of sale is one of the biggest advantages that selling to a dealer offers.
- No Hassle: When you sell your car privately, you have to put up with people coming and looking at your car. This means phone calls, texts, inspections, test drives, questions etc etc. When you sell to a dealer, it’s one company buying your car, minimal hassle.
- Money (nearly) guaranteed: A dealer will pay you the agreed money, at the agreed time. When you sell a car privately, that’s not always the case. Sometimes you have to wait a long time to find a buyer and there’s a lot of time wasters out there.
That All Sounds Good, Why Sell Privately?
- More Money (mostly): Dealers are in the business of making money, for that reason they won’t give you as much money. They need to make a margin and they also need to be able to sell your car on to a wholesaler. If you choose to sell your car privately, you can take home 10%-20% sometimes even 30% more than what you’d get from a dealer.
- Fund The New Wheels: Most people aren’t going to have the cash to be able to buy a new car without using some of the funds from the old one. If you sell your car privately, you can use websites like Trade Me to sell your car and know what you can afford with the next one.
- No Limit to Buyers: If you aren’t buying your next car from a dealer, you’ll have to go to a wholesaler and get them to buy the car. This can often mean a lot of hassle and can limit your buying options. If you sell privately, you can buy privately or from a dealer, with the same funds but more options.
Whether You Go For a Dealer vs Private Sale is Up to You
Weigh up what you need from the sale of your old car and go with what’s best.
If you liked this and want some more info, check out some of our other handy buying and selling tips here.