Put his car in exchange dealer or sell oneself?

Put his car in exchange dealer or sell oneself?

No, but then really nobody is satisfied with the amount offered by a dealer for the current vehicle when it comes time to replace it.

Often well below the value of our car on the market of the occasion, the exchange value continually disappoints. This does not mean that we automatically look to sell its self oneself, however.

Understanding the difference

To begin, you should know that the dealer has obtained amount is less than the market value of our vehicle simply because someone will have to sell the car later. Whether the dealer himself or retailer of used vehicles who agrees to buy your current car, there will be a benefit obtained with the subsequent sale.

This may seem logical, but any sales representative to tell you that many buyers do not understand this reality. We often feel that the dealer seeks to have us when he announces the exchange value, but ultimately, what it tells us is that if your vehicle is worth $ 10,000 on the market and the opportunity that it gives you a check for $ 7 500, it will make a profit of $ 2 500 on the sale of your current self.

However, this profit margin will be eaten up by all the repairs and preparations that must be done to prepare your vehicle for sale. This small scratch or crack the leather on your seats are perhaps not so worse in the eyes of the owner, but the seller these defects must be corrected before starting the vehicle for sale.

Then, evaluation of vehicle exchange is quite summary. The mechanical condition is rarely taken into account and the dealer must protect against breakage or problems that will be known only after the conclusion of the sale.

In short, the exchange value is less than the value of the market for all the reasons previously enumerated.

We must consider tax

So interest you have to sell the vehicle for yourself? Not necessarily. First, it involves costs that must be assumed. You have to inspect our vehicle, clean, correct sores aesthetic and mechanical and announce it.

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Then you have to be patient and we will usually meet several potential buyers more or less serious and respond to several more or less relevant applications – not counting the many fraudsters – before finally sell the car.

But avoid this may be sufficient to justify the difference between the amounts obtained. Note also that the exchange value is applied before taxes in addition to the cost of your next vehicle, while the amount you get for your current vehicle will be considered a cash discount with the purchase and will be applies after the calculation of taxes.

Ca explain with an example. Imagine that you could get $ 5,000 a particular selling the vehicle on the market the opportunity while the dealer offers you $ 3000. Imagine then that the vehicle you wish to buy costs $ 20,000.

Let score all costs to make our lives easier. By adding the tax to the amount required for the vehicle to $ 20,000, obtained a final price of $ 22,995. By cons, if we put our vehicle in exchange, we calculate taxes on $ 17,000 and the final price is then 19 545 $. If we sell our vehicle and give the $ 5000 to the dealer, the final price of our next car is 17 995 $.

Yes, it is always more advantageous from a financial point of view to sell by oneself, but in our previous example you can now leave the dealership with your new car if you give your vehicle in exchange.

If you decide to sell to an individual, you do not know how long you must wait before selling, and how often you will bother on a Sunday afternoon after a curious buyer who wants to see your vehicle …

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In closing, and knowing that the dealer will be an additional profit margin on exchange your vehicle, do not hesitate to negotiate.