According to a recent Edmunds used vehicle report, demand for used cars is dropping and so are their values as the new-car market rebounds from pandemic-induced shortages. This is especially true for 1- and 2-year-old vehicles. So there’s never been a more critical time to know whether it’s better to sell your car privately or trade it in.
If you’re concerned with fielding calls and meeting strangers from the internet near your home, a trade-in would be the safer bet. The same can apply when taking cash or a check from a stranger.Trading in also allows you to get different offers for your car, often from the comfort of your home. You can get offers from online sites such as Edmunds that you can either accept or use as leverage to get a higher offer from other dealers.
Of course, a dealer needs to leave enough room for its own profit when it flips your trade-in. That’s why you’re likely to get a lower trade value than if you sold privately. Also, negotiating the price of your trade-in at the same time as your new-vehicle purchase can lead to a lot of numbers flying around. The potential confusion certainly benefits the dealer.The decision to sell or trade in your car depends on your priorities, time constraints and comfort level with the selling process.
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