Should You Trade In Your Current Car?
Are you looking to get rid of your current vehicle? You’ve got several options: You could put a “for sale” sign in the window of the vehicle and hope an interested passerby spots it. You could list the car in the automotive classifieds or on Craigslist and field calls and emails from potential buyers who will likely haggle over price. Or, you can simply trade in your auto to a dealer and purchase a new one.
Trade-ins are fairly common – the process is fast and maybe the easiest way to get rid of your used car. However, some people avoid trade-ins entirely, preferring to weed out potential buyers themselves than bargain with a dealer. However, private party sales aren’t as simple as they might seem. Before dismissing the idea of a trade-in, learn what you may gain from going that route, and reconsider the potential risks.
Disadvantages of Trading In a Car
Trading in a car isn’t always the best option. It is up to you to consider the pros and cons before making your decision.
1. You May Get Less Money for Your Car
There’s no doubt that trading in a car to purchase a new one is simple and convenient. But too often, the amount offered by dealerships is much less than the private party value.
For example, the private party value of a 2009 Toyota Camry XLE in excellent condition with 30,000 miles is approximately $19,479. However, the trade-in value for the same car in the same condition is only $17,426, that’s a difference of about $2,000.
2. You Limit Where You Can Buy a Car
When a dealership appraises your car and agrees to buy your car, you’re obligated to buy your next car from that dealership. If the dealership doesn’t have a car that you want, you can’t trade in the car. There is no provision that allows you to trade in a vehicle at one dealership and purchase from another, nor at a later time.