SELLING A CAR
Trading in vs private sale: what’s the best way to sell your car?
25 November 2024
When it’s time to sell your car, you’ll need to decide whether to trade in your vehicle or sell it privately.
Weigh up the pros and cons to decide which might be the best option for you.
How trading in a car works
A car trade-in is generally when you use your vehicle as part of the payment for a new (or used) car. Take your car to a reputable dealer to assess the trade-in value of your old car. You can then subtract that amount from the price of the new one that you purchase from the dealership.
Pros and cons of trading in your car
Pros
- It’s usually quick and convenient.
- There is no need to present a roadworthy certificate. The dealer will make any necessary repairs and organise one before they resell.
- You could make the deal immediately rather than having to wait for a buyer and negotiate.
Cons
- Trading in could result in a lower valuation from the dealer compared to what you could receive through a private sale.
How to trade in your car
1. Get organised
Ensure your car’s service history is up to date. Visit your mechanic, if you have a regular one, who may have the car’s history on record.
2. Clean and polish your car
Detailing the car can improve first impressions and may enhance its value.
3. Do your research
Research the market. Don’t sell unless you’re comfortable with the dealer’s offer.
4. Negotiate
Compare dealer offers. Don’t be fixated on your trade price. It’s the changeover amount that is most important.
5. Sort out paperwork
Such as insurance and registration.
6. Say goodbye and hand over the keys.
Compare Suncorp Car Insurance options
Can you trade in a car that is financed?
Yes, you can trade in a financed car if your lender allows it. You may need to pay the difference if your car’s trade-in value exceeds the loan balance. The dealership can also provide more information about this process.
How to sell your car privately
Selling your car privately means you can determine the selling price. You could potentially make more money than if you traded it in.
The pros and cons of selling your car privately
Pros
- You can sell on your own terms.
- You have more control over the sales process. For example, you do the research, set the price, and decide on the payment method.
Cons
- It may require more effort and time. Consider the time spent advertising the sale, responding to ads, organising test drives, and negotiating.
- You’ll need to handle a lot of paperwork on your own.
How to sell a car privately
1. Research and advertise
Research similar cars to determine a price and advertise your car. You can use online platforms, marketplaces, notice boards and a “for sale” sign on the car’s windows.
2. Get your car ready
Give your car a thorough clean and make necessary repairs. You may even consider professional detailing.
3. Sort out the car’s documentation
Have the car’s service and maintenance history ready – including a roadworthy or safety certificate if required by your state or territory.
4. Get your sales pitch together
Create a genuine outline of your car’s history and features. That could help you during negotiations.
5. Be ready to negotiate and screen buyers
A private car sale requires great negotiation skills – put yours to good use. Also, when the time for test drives comes ask for the potential buyer’s ID and contact details. Check your insurance policy to see if it covers test drives and unlisted drivers.
Suncorp Comprehensive Insurance customers can offer cover if a potential buyer has an accident while test-driving your vehicle for the purpose of a sale but only if the insured person or a listed driver accompanies the potential buyer. Conditions, limits and exclusions apply, refer to the Product Disclosure Statement (PDS) for more information.
6. Do the paperwork and kiss your old car goodbye
Congratulations — you’ve sold your car. Please complete the necessary paperwork, such as the registration transfer form, only after you receive the payment.
Trading in vs private sale: The verdict
Both options have advantages and disadvantages. Ultimately, your decision will be determined by your time and resources.
Whether you're getting a new car, selling privately, or trading in at a dealership, ensure you get the right car insurance. Suncorp Insurance offers a range of options so you can find what suits your needs and budget.
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Insurance issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Read the Product Disclosure Statement before buying this insurance. The Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.
The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries.
