Advantages of trading in your vehicle as opposed to selling it yourselfJul 13th, 2020
When it comes to the trade-in vehicle, many consumers are disappointed of the value that they receive. It’s understandable, but the number that is given to you by the dealership isn’t always as low as it seems.
For starters, let’s talk about why the dealership usually gives you under market value for your trade-in. The reason is that you are getting the book value or the wholesale value as opposed to the market value. It also takes into account the fact that for your vehicle to be sold, there are usually aesthetic as well as mechanical touchups that must be done. These expenses will come out of the pocket of the dealership.
Now, trading in your vehicle as opposed to selling it yourself is a lot simpler. It can take weeks if not months to sell the vehicle and a lot of time you will be forced to meet prospective buyer after prospective buyer who will take up your time with little or no interest in your vehicle.
Moreover, there are tax advantages to the trade-in. For example, let’s say that you sell your vehicle for $20,000, but the dealership gives you $17,000. You decide to apply the $20,000 to the price of your next vehicle that cost $30,000. The $30,000 plus tax and fees equals roughly $34,500. Your $20,000 will be reduced from the $34,500 to give you a net cost of $14,500 with taxes and dealership fees (estimation). Now, the trade-in is applied before tax. That means that we take $30,000 and reduce $17,000 which equals $13,000. The tax is then added to the $13,000 which equals $14,950. In the end, selling the vehicle yourself nets you only $450. If we give you $17,500 for your trade-in, then you come out on top with the value.
In other words, there are advantages to giving your vehicle as a trade-in at the dealership. Learn more today at Kitchener Kia.