Many important decisions must be made when changing vehicles. You need to decipher your needs and budget, and also decide what will be done with the current vehicle. If you do not want to keep it, there is the option to sell or trade it back to the dealer.
Each option has advantages and disadvantages, you guessed it. In general, you get a higher amount if we sell it, but in return, the process can be long and sometimes painful too.
When you decide to hand over the car to the dealer, the process is much simpler and much faster. There are also tax considerations that must be taken into account.
The Easy Option Is to Trade-In
Selling a car is not easy. You have to announce it, buy multiple ads, take several pictures, talk with many more or less serious buyers and above all, you have to be patient. Very patient sometimes.
All of this has value. Each person can determine this value, but for many, it is equivalent to the difference between the amount obtained by selling the car yourself and the amount offered by the dealer for your vehicle.
The amount of the trade in will often be the market value minus the profit margin of the dealer. So, if your car is worth $ 15,000 in the market, it will probably be worth between $11,000 and $13,000 at the dealer. That means we can get between $2,000 and $4,000 more by selling it by yourself.
On the other hand, we must also consider taxes in all this. Indeed, when a vehicle is traded in, the amount is reduced before the calculation of taxes. If a deposit is made, this amount is deducted after the calculation of taxes.
In short, as you can see, there are several considerations here. It's up to you to decide which method works best according to your level of patience and available time.
For more information about trade-ins, contact us today at Belvédère Occasion.