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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.
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.
Finally, some good news for car shoppers: October 2024 is packed with zero-down lease deals. As year-end deals approach, manufacturers are rolling out some serious lease incentives to sell remaining inventory before the new year. Right now, it’s totally possible to get into a new car with no money down. Be sure to check back regularly, as automakers update these offers during the first week of each month!
The Best Lease Deal: Lease the 2024 Tacoma SR5 for $449/month with $0 due at signing. It’s very rare to see a best-selling truck lease special with no money down!
These October 2024 lease deals offer an excellent chance to drive away with a new vehicle with zero money down. Whether you’re looking for a truck, an electric SUV, or a traditional crossover, these zero-down leases are hard to beat. And now for even better news: We expect the number of zero-down leases to grow in the months ahead. With 2025 models arriving on dealer lots, year-end sales are set to be huge.
Keep checking back for updates, as more deals are on the horizon.
Buying a rental car can be an affordable way to get a newer vehicle, but it’s important to weigh the pros and cons. Rental cars are often priced lower than those privately owned, making them appealing to budget-conscious buyers. But are the risks worth it? Let’s weigh the pros and cons to find out.
Pros of Buying a Rental Car
Rental car companies like Hertz offer no-haggle prices on one to three-year old used cars, which can be significantly lower than the true market value. For example, a 2023 Tesla Model 3 could be thousands of dollars cheaper than its resale value. Additionally, rentals are well-maintained, with strict maintenance schedules and frequent cleanings. At least, that’s what’s supposed to happen. As many who have rented a car know, the experience can bring surprises, most notably unpleasant odors. With that said, let’s move on to the reasons why buying a rental car can be a bad idea.
Cons of Buying a Rental Car
While buying a rental car can save you money, it comes with some downsides. The most significant concern is high mileage. Rental cars often accumulate mileage faster than privately owned vehicles, leading to more wear on components. This is a big part of why rental cars are so affordable.
Additionally, while rental agencies maintain their fleets, cosmetic wear and tear from frequent use are not always addressed. Common signs of wear, like minor scratches or worn interiors, may still be present. Your rental car company should permit you to take the car to an independent mechanic for a pre-purchase inspection. These PPIs typically cost $100-$300, but it could easily identify problems that would cost you thousands of dollars.
Perhaps the most common complaint from those who rent cars is the smell. First, there are the lingering smells of previous drivers. Second, there are the odors that vehicle cleaning leaves behind. It’s not unusual to rent a car that somehow smells of cigarette smoke, even if smoking was never permitted in the vehicle. These odors can be very tough to eliminate.
Rental cars also tend to have limited features and are typically basic models without the higher-end trims or optional upgrades you might find in privately owned vehicles. Lastly, used car resale values may be lower than average, as many buyers shy away from purchasing former rental cars.
Buying an Electric Rental Car
With the rise of electric vehicles in rental fleets, buying an electric rental car can be a cost-effective option for those looking to make the switch on a budget. Hertz is selling thousands of EVs after learning that renters are hesitant to give EVs a try on a time-constrained business trip or vacation. After all, charging is time-consuming. However, there are some precautions that every used EV shopper should take, whether buying from a rental car company or elsewhere.
Consider the battery’s condition, as frequent short trips and rapid charging could reduce battery health. Don’t buy a used EV unless you can see what the estimated range is at 100% full charge, and compare the number to the EPA-rated range when new.
Always check the vehicle’s charging history to the best of your ability. If an EV was exclusively charged at DC fast chargers, it’s more likely to be in poor condition. Overnight ‘Level 2’ charging is easiest on high-voltage batteries.
Verify the battery warranty to ensure it’s still covered. Fortunately, EV battery and powertrain warranties typically last longer than coverage provided for ICE vehicles. See the best (and worst) EV battery warranties.
Final Thoughts: Consider Your Wants, Needs, and Budget
Buying a rental car can be a cost-effective way to get a reliable vehicle, but it’s essential to weigh the pros and cons. High mileage, potential cosmetic wear, and limited features may not matter if your primary goal is affordability and ease of purchase. However, you should always get a vehicle history report and inspect the car carefully. If you’re looking for an affordable car without the frills, a rental car could be a smart choice. For EV shoppers, pay extra attention to battery health and charging history to ensure you’re getting a well-maintained vehicle.
See depreciation data, total cost of ownership, maintenance costs, and so much more at the 100% FREE CarEdge Research Hub.
Buying a car from a private seller can be tempting, especially when the price is right. But private sales come with risks that you need to be aware of before making a deal. Unlike dealerships, private sellers don’t have the same accountability, making it crucial for buyers to do their homework. Here are some important risks to consider when buying a vehicle through a private sale.
1. Sellers May Not Always Be Transparent
While dealerships rely on reputation, private sellers often aren’t as concerned about being 100% truthful. There’s little downside for them to leave out important details about the car’s condition, especially if it means losing money. That’s why it’s essential to approach private sales cautiously and assume the seller might not disclose everything. Always request a vehicle history report to get the facts.
2. Hidden Liens on the Vehicle
One of the biggest risks when buying from a private seller is the potential for hidden liens on the vehicle. If there’s unpaid work or debts associated with the car, the new owner becomes responsible for them. A vehicle history report should help disclose any liens or outstanding debts, so make sure you check before purchasing. A hidden lien is rare, but a huge pain if it happens.
3. Undisclosed Mechanical Problems
Private sellers may list their cars for sale after a dealer refuses to accept it as a trade-in, often due to mechanical issues. These problems may not be immediately obvious without professional diagnostic equipment. To protect yourself, always have the car inspected by a trusted mechanic before finalizing the sale. Learn more about Pre-Purchase Inspections.
4. Vehicle History Reports Aren’t Foolproof
While vehicle history reports provide valuable insight into a car’s past, they only contain what’s been reported. If an accident wasn’t documented, it won’t show up on the report. To avoid surprises, have a professional pre-purchase inspection check for signs of damage, such as mismatched paint or replaced body panels.
5. State Inspection Issues
Each state has different safety and emissions standards, and just because a car passes inspection in one state doesn’t mean it will pass in another. Things like window tinting, ground clearance, or other modifications can become costly issues. Make sure the car meets your state’s requirements before making a purchase. If you live in a state with strict inspection criteria, buying a used car, especially an older car, will involve a higher risk of a failed state inspection, and the need for costly repairs.
6. Limited Recourse with Private Sales
Unlike dealerships, private sellers aren’t subject to the same regulations and oversight. If something goes wrong after the sale, your options for recourse are limited. Legal action against a private seller can be costly and time-consuming, leaving you with few alternatives if the car turns out to be less than advertised.
How to Protect Yourself in a Private Sale
If you’re considering buying a car from a private seller, take steps to protect yourself. Obtain a vehicle history report, research expected resale values, and get a mechanic’s inspection. These steps will help ensure that you’re making a smart decision and not getting stuck with a vehicle that could end up costing you more in the long run. But here’s the bottom line: unless you personally know the seller and have a high amount of trust in them, it’s impossible to be 100% certain that you are avoiding the risks mentioned here.
Check out the following video for more information on today’s used car market:
![Every Zero-Down Lease Deal This Month [October 2024]](https://caredge.com/wp-content/uploads/2024/03/2024-09-16_Cheapest-Leases-This-Month_Blog-Header-Image_1920x1080_v1-1080x675.jpg)
