Get access to the same vehicle valuation tool that dealers rely on. With Black Book, you’ll have insider data to accurately assess trade-in and purchase values—empowering you to negotiate the best possible deal.
It’s time to say goodbye to your old reliable car, but should you sell it privately or trade it in? Both options have their pros and cons, but with the right approach, you can minimize financial losses. Here are 10 tips to help you make the best decision.
10 Car-Selling Tips To Consider
1. Don’t name your price first
If a salesperson asks how much you want for your car, don’t give them a number. Let them make the first offer to avoid limiting your potential trade-in value. If asked, let them know that your primary interest is minimizing your net cost, or trade difference, after an allowance for your trade. Avoid providing any firm numbers, despite their repeated attempts to enquire, as they will be resolute in getting you to throw out the first number.
2. Tax benefits of trading in
Trading in your vehicle at the dealership can save you on sales tax. When you trade-in, you subtract the value of your car from the sales price of the new one, and you only pay sales tax on the difference in value. For example, if your trade-in is worth $20,000 and your state has a 5% tax, you could save $1,000 compared to selling it privately.
3. Don’t clean the car too early
If you’re just browsing, don’t clean out your car beforehand. A spotless trunk signals you’re ready to buy, potentially weakening your negotiation position.
4. Watch out for the higher offer trick
Dealerships may offer more for your trade-in but mark up the price of the new car. Don’t be fooled by the dealer that simply offers you the highest price for your car, as they may be getting you on the other side. Always look at the total cost.
5. Fix the obvious issues
If selling privately, get the obvious repairs fixed up front, and perform the routine service, like an oil and filter change. If your vehicle needs obvious repairs, private buyers will discount its value by at least 2X of the cost of the repair, as they will be concerned that it can’t be fixed, or that repairs will end up being more costly. Buyers don’t want to inherit a problem; they want a car that they can drive home with confidence, and is trouble-free.
6. Check your car’s history report
Run a vehicle history report before selling. Surprises on a report could deter buyers or lower your asking price. If you’re the original owner and have never had any problems or accidents, it’s possible to skip this step.
7. Organize vehicle documentation
Present your service records and manuals in an organized manner to instill buyer confidence. If you have them, make sure to include the vehicle registration, window sticker and any operating manuals that you received, so that you can present them to any possible buyer.
8. Trade where it makes sense
If your trade-in doesn’t match the dealership’s typical inventory, expect a lower offer. If you are at the BMW dealership, and you’re looking to trade in your 10 year-old Corolla with 120,000 miles, don’t expect a good offer. They won’t want your car, and will sell it straight to a wholesaler. Keep this in mind when thinking about a trade-in.
9. Meet in a public place
For safety, meet prospective buyers in public spaces like designated safe meeting zones rather than your home.
10. Pay off loans before selling
If possible, pay off any loans before selling. Having a clean title in hand, goes a long way towards resulting in a seamless transaction, versus having to get a bank involved. Sometimes banks will take weeks to send you a title that is free of liens, and that is enough to sour a lot of car deals. Similarly, make sure that you ask the private buyer how they intend to pay for the car.
Conclusion
Selling or trading your car doesn’t have to be stressful. By fixing minor issues, getting paperwork in order, and strategically timing your sale, you’ll increase your chances of getting a good offer. The more certainty you provide the buyer, the more they’ll be willing to pay. Learn more about resale values with CarEdge Research.
Car buying can be overwhelming, but Deal School is here to help. CarEdge, led by father-son duo Ray and Zach Shefska, has updated the internet’s #1 free car buying course for 2024 and beyond. Designed to empower consumers, Deal School teaches buyers how to navigate the car buying process with confidence, saving money in the process.
Deal School consists of four comprehensive units made up of 22 individual lessons, each designed to prepare you for every step of your car buying journey. Here’s a breakdown of what you’ll learn:
Finding Your Vehicle: Discover how to assess your needs, set a realistic budget, and choose the perfect new or used car.
Getting Ready for the Dealership: Get expert advice on what to research and bring to the dealership to set yourself up for success.
How to Negotiate Your Car Deal: Unlock strategies to negotiate like a pro, whether you’re leasing, trading in, or buying.
Navigating the Finance and Insurance Office: Learn how to avoid costly mistakes by understanding financing options and F&I products.
Each unit concludes with a quiz to test your knowledge and ensure you’re ready for real-life negotiations. With CarEdge’s Deal School, the car buying process is not only simplified, but consumers also gain the confidence to negotiate smarter deals, keeping more money in their pockets.
What’s New in Deal School?
In addition to refreshed lessons with updated information and brand-new recorded lessons with Ray Shefska, Deal School 2024 introduces a free e-book filled with proven strategies to help you get the best deal on your next ride. This e-book is packed with insider knowledge, giving you a major advantage before stepping foot in a dealership. Print it off, take it with you, and shop for your next car with confidence.
Learn Car Buying Like a Pro
CarEdge’s Deal School is the go-to resource for anyone looking to buy a car with confidence. You’ll learn everything from car-buying secrets to mastering the art of negotiation and understanding financing. Once you complete the course, you’ll be ready to secure the best deal on your next vehicle purchase.
As Hurricane Milton barrels toward Florida’s Gulf Coast, the automotive industry is bracing for significant losses. Over 122,000 new cars are parked in the storm’s projected path across Central Florida, with landfall expected on October 9th. While residents focus on evacuating, thousands of cars will be left behind to face damaging winds and floodwaters. Here’s a closer look at which automakers and regions will be most affected by Milton, from Tampa Bay to the Space Coast.
Ford, Toyota, Hyundai have the most inventory in the Tampa area.
In the greater Tampa metro area alone, over 35,000 new cars are for sale, many of which are at serious risk of damage from storm surges predicted to reach up to 12 feet. Considering that about half of Tampa sits lower than 20 feet above sea level, storm surge will pose a major risk to all, not just cars. Local economies will feel the impacts for months to come. When it comes to the car market, Hurricane Milton could throw a wrench in year-end car sales that normally ramp up come November and December.
These are the major car brands with the largest new car inventory in the Tampa area:
These numbers reflect the total new car inventory for a 30-mile radius extending out from St. Petersburg, Florida as of October 7, 2024. Given these numbers, the Tampa area is facing potential losses that could impact local dealerships for months to come. In fact, Florida inventories and sales are so significant that Hurricane Milton could impact some automaker’s bottom lines.
While the overall number of luxury cars in Milton’s path is lower, the percentage of their total U.S. inventory at risk is staggering. Brands like McLaren, Alfa Romeo, and Aston Martin have some of the highest proportions of their national inventory in Florida, making them particularly vulnerable:
With luxury vehicles making up a smaller market share, the impact of losing even a few hundred cars could cause significant disruptions for these high-end brands.
Will Hurricane Milton Impact Car Prices?
With a one-two punch from hurricanes Helene and Milton, the Southeastern US will be recovering for months to come. With the possibility of thousands of cars totaled from flood damage, the car market in Florida will be most impacted. In the short term, new and used car prices could jump as available inventory shrinks and car dealers look to make up lost profits.
As Florida car shoppers move north in search of undamaged inventory, the demand for new cars in the neighboring states of Georgia, South Carolina, and Alabaman may push prices higher. Unfortunately, recent events have taught us that car dealerships don’t hesitate to add ‘market adjustments’ to MSRPs when demand exceeds supply.
For those outside of the Southeast, it’s unlikely that car prices will be impacted by Milton. However for Floridians, a tough car market is about to get even more challenging.
Car Buying in Florida: A Tough Market Just Got Worse
Florida has long been known as one of the toughest states for car buyers. Uncapped documentation fees that average around $995—three times the national average—already make buying a car in the Sunshine State a costly affair. Florida also tends to have tighter inventory than other states. With the added destruction from Hurricane Milton, car buying could become even more difficult and expensive.
Post-hurricane recovery efforts could see dealerships facing inventory shortages, leading to inflated prices and markups above MSRP. With demand likely to outstrip supply, shoppers may also encounter more aggressive dealer fees in the months ahead. It’s times like these when a cap on dealer fees sure makes sense. Unfortunately, Florida is one of the only states without one.
What to Expect After Milton
Hurricane Milton is shaping up to be one of the most devastating storms for Florida’s automotive market. With thousands of new cars in the storm’s path, dealerships and automakers are likely to experience financial strain. If history is any lesson, this will inevitably trickle down to consumers. If you’re considering buying a car in Florida in the near future, prepare for higher prices and limited options as the state recovers from the storm.
For those in immediate need of a vehicle, buying a car out of state may be a better option as local inventory shrinks. As multiple storms hit the Gulf Coast, car buyers will need to cast a wider net to find deals and avoid potential markups.
Car depreciation is what makes cars a bad investment—they always lose value over time. If we could sell our cars for what we paid, we’d be collecting them like baseball cards. But the reality is, 99.9% of vehicles lose value, just like rust on an old car.
Cars aren’t investments—they’re tools for transportation. On average, a new car loses 20% of its value in the first year and 40% by year three. Imagine buying a house for $500,000, only for it to drop to $300,000 in value three years later—that’s the same financial hit you take with many new cars. Here’s a closer look at what car buyers should expect with depreciation, and how to avoid the worst of it.
Is Depreciation Inevitable?
When you buy any new car, depreciation can’t be avoided. On average, new cars will lose around 20% of their value after one year of ownership. After that, they may lose about 15% more per year until the four-year mark.
However, not all cars depreciate equally. As an extreme example, we’ve seen low-mileage luxury cars and EVs lose over 50% of their value over just three years. The good news is that it doesn’t have to be this bad.
The worst depreciation happens in the first few years for a new car. By avoiding a brand-new vehicle and buying one that’s 2-5 years old, you can dodge the steepest drop in value. Let someone else take the loss! When you buy a gently used car, you will lose far less money to depreciation if you decide to sell your car in the future.
Smart Shopping Pays Off
When it comes to new car depreciation, the numbers don’t lie. New car depreciation is unavoidable. A new car costing $40,000 can easily lose $16,000 in value over three years, costing the owner over $400 per month in depreciation. But if you buy that same car at three years old for $24,000, you’ll only lose $7,500 in value over the next three years—less than half the depreciation cost.
Yes, there’s something special about driving a brand-new car. But unless you really love that new-car smell and pulling off those safety stickers, a slightly used vehicle offers the best bang for your buck. Be smart, shop wisely, and use our tools to find the best value on the market. Use the tools available today with CarEdge’s Research Hub – it’s 100% free data!
One of the most common questions we are often asked is, “When is the best time to buy a car in order to get the best price?” The answer is simple: year-end sales are your best bet. Let’s break down why the end of the year is ideal for negotiating a great car deal.
Why Year-End Sales Matter
Dealerships are highly motivated to sell at the end of the month and year. Every day, sales managers review their inventory to identify which cars need to sell quickly. The longer a vehicle sits on the lot, the more it costs the dealer, which increases the likelihood of a discount.
Using CarEdge Insights, you can see how long cars have been sitting on dealer lots, giving you an edge in negotiations. Plus, dealerships push hardest at the end of the month to hit sales goals, offering the best deals during this period.
December 31st: The Best Day to Buy a Car
December 31st is the absolute best day to buy a car. Not only are year-end incentives in full swing, but dealerships are closing their financial books, and some may face inventory taxes on unsold cars. This creates even more pressure to clear inventory and offer deeper discounts.
What about other times of the year?
Can’t wait for December? The last day of each month is also a great time to buy. Sales targets drive dealerships to offer better deals as they aim to hit their numbers. You can still find solid discounts, even if it’s not year-end.
Maximize Your Savings With Free Tools
Plan your car purchase for the end of the month for the best deal. To really maximize savings, head to the dealership on New Year’s Eve and be prepared to negotiate. Using CarEdge Insights, you’ll have the information you need to get a great deal before the clock strikes midnight. Rather have a pro negotiate for you? Learn more about CarEdge Concierge.
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