Join Date: Dec 2010
Feedback Score: 0 reviews
Selling or Trading In Your Old Car
I am curious about what percentage of new car buyers trade in their old cars. Personally, I find trading in an old car just about wipes out whatever "deal" you made on your new car purchase. Sure it's easier to just hand the keys of your old car to the dealer, but is it really in your best interest?
What incentive would a car dealer have to offer you what you would get by selling it yourself? 99% of the time, the car dealer just sells your car to a broker who pays them rock bottom trade-in value. They then turn it around to a used car dealer who is responsible for fixing any mechanical and cosmetic issues with the car. For everyone to make money, the new car dealer must buy your car from you for a rock bottom price.
Selling your car on EBay is extraordinarily easy. Just list it for the Kelly Blue Book Trade-in value (which is much more than a dealer will give you for it) and sit back and see how the bids escalate. Make sure you demand a $500 deposit to be deposited into your PayPal account within 24 hours after the auction ends with the balance due within three days. This is very easy as the winning bidder only needs a credit card or bank account to do this. If the winner punks out, then offer it to the next highest bidder with the same demands.
If your car sells, then it's a $125 fee to EBay (if the final auction price is above $2000). If not, you can relist it for free. It's no longer the 20th century when you had to list a classified ad in the paper and wait at home to show your car to potential buyers. It can all be done without ever having to hassle with test drives, etc. The highest bidder wins, period.
Just in case you have not been reading the news, the used car market is extremely hot in this economy. People are dying for high mileage, cheap cars... Why allow allow the dealer to take all that profit?
Losing $1500 - $2000 on a dealer trade-in just wipes out whatever "deal" you made on your new car purchase. And if worse comes to worse and your car does not sell on EBay, Just take your car to a used car broker. They will glady give you at least what the dealer offered you for your car.
Or, if you have charitable instincts, you may be able to donate your car to a worthy charity and deduct the retail value on your taxes. You may be able to make more money than the dealer would have offered you, and helped out some needy people at the same time...