A car becomes a part of your family which is unsurprising as it's estimated that you spend as much as 6552 minutes in your car every year. That's equivalent to 109 hours or 4.55 days all spent in your car.
But alas, a time comes around where you feel you should probably trade in your 'family member' in order to get your money's worth or simply because a new family member (car) has caught your eye.
You may also be on the fence about whether you should handle the marketing of your car on Gumtree, OLX, AutoTrader etc. or go the simple route and trade it in at a dealership.
As with everything in life, there are pros and cons of trading in your car. The first decision to make is whether you want the hassle (but also control) of marketing and selling your car yourself, or whether it will actually benefit you to trade in your car to make the new purchase more affordable.
The Pros of Trading in Your Car
When deciding to sell your car, there are several factors to consider. One of the primary reasons to go with the decision of putting your car on the market would be the fact that it is a lot simpler, with a quick turnaround period.
But, before you put it on the market, understand how a trade-in can help:
If you are trading a car that is popular and has great resale value, you are also able to negotiate with a salesmen easier than in a private sale. The reason being, a salesman works off profit and thus has an understanding of what cars 'move' quicker off the showroom floor as well as which cars are more valuable for parts.
It is also comforting to know that any scratches and dents on your car will be of less concern to the salesmen who will fix all imperfections with an autobody partner at a fraction of the price.
The Cons of Trading in Your Car
As mentioned earlier, selling your car can sometimes give you more 'control' over the sale and also allow you to get far above retail value. Trade-ins are almost always below retail value so that the salesman can make some sort of a profit. Here are three cons associated with trading in your car:
Trading in your car may not be the answer if it is a very old or less popular car and you might not get as much as you bargained for.
Selling your car privately opens your car up to a wider audience and, if a buyer really loves your car, you could be walking away with 'ka-ching' sooner than you know it.
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