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There are plenty of ideas and myths out there about why it is good, or bad, to trade-in your car at a dealership. Here are some of the best reasons to consider when trading-in your vehicle:
1) Save Time – when trading-in your vehicle everything is done in one single step. You pick up your new vehicle at the same time you drop off your old one. Easy! There is no need to clean up your trade-in or make sure it is mechanically sound.
2) Save Money – the car market changes all the time. When trading-in your vehicle you pass the risk on to the dealership.
3) Taxes – the value you receive for your trade-in is deducted from the new vehicle’s price before GST is added. Essentially, you will receive an additional 5% savings on the value of your trade!
4) Safety and Convenience – it can be unnerving having strangers come to your house or drive your vehicle prior to actually completing the sale. In addition, you may have to deal with potential fraud within the transaction or spend your evenings and weekends arranging viewings and test drives. Trading-in your vehicle can avoid this stress.
5) Liability – with a trade-in the Dealership assumes the liability. You don’t have to worry about who is responsible if something goes wrong.
The biggest reason people choose not to trade-in their vehicle is the potential to sell the vehicle for more money. At times this may be the case, however, there is a lot that goes into getting top dollar for a used car in a private transaction. Consider the following steps to making a successful private sale.
1) Mechanical Readiness – it makes sense to ensure your car is ready to sell and those squeaks and rattles that you might be used to don’t turn off a potential buyer when they test drive the car. You should invest in a mechanical inspection before listing your vehicle for sale.
2) Advertising – you will need to post your ad in places people will see it and include some great pictures to attract potential buyers. Consider investing in a professional detailing of your vehicle to ensure it shows well. Competitively pricing your vehicle will also attract serious buyers. You will need to do your homework to know what top dollar is.
3) Test Drives – it can take some effort to set up meetings and test drives for buyers. Have a plan and let friends and family know when you are having a test drive scheduled. Here are a few things that we recommend to improve your odds of selling the vehicle and avoiding any trouble.
a. Make sure all maintenance lights and warnings are off. Nothing stops a sale like a lit up dashboard.
b. Find a public place to meet. The odds of being taken advantage of diminishes when you meet in high traffic public areas.
c. Get a driver’s license! It ensures you know who you’re talking too and that they are in fact legal to drive.
d. Check with your insurance company to ensure you have coverage for third party drivers.
4) Negotiating – depending on your personality this can be fun or stressful! You will likely be negotiating down from your advertised price so this can be the part where you either earn your top dollar or not. If you aren’t a good negotiator this could be a trouble spot.
5) Transacting – fraud can be a concern at this point. Bank drafts and cash are the best options to prevent fraud. You will also have to provide a bill of sale (available online or at any Registry Office) to the buyer so they can register their new car.
There is a lot to consider when selling your car. The route you choose to take will be a personal choice based on your experience and preferences.
The process of trading-in your vehicle should be easy and transparent. If you are interested in an appraisal of your vehicle, whether you are trading-in or not, please call us at 403-451-1333 to arrange an appointment with a Sales Manager for a free appraisal.