Get the best price for your car
A used car dealership advises motorists on the pros and cons of the ways in which you can sell your car.
While the used car market seems to be thriving on the back of high price inflation on new vehicles, consumers continue to struggle to get good prices on trade-ins.
Jamie Surkont, director of get\Worth car dealership, said getting a decent price when selling your car is no easy feat. He suggests starting with research to get a good idea of the market value of your car on online platforms as an unrealistic asking price can kill the chances of a sale. “Look at the list prices of cars with the same registration year and similar mileages. Make sure you compare apples with apples,” he explained.
Jaime added that the next critical consideration is how to sell. He points out the pros and cons of each method:
Private sale
Pros: You sell directly to the buyer, so there is the potential to get a better financial outcome.
Cons: Security concerns, time-wasters, tyre-kickers, paperwork and something that many people overlook: finance. Financing private sales, particularly if there is a trade-in involved, can be challenging and can often take many weeks to finalise. The typical buyer would rather buy from a reputable dealership than an unknown private party, which will affect your asking price.
Trade-in
Pros: The convenience of a single transaction.
Cons: It is hard to tell what you are actually getting. A dealer can offer you what seems like a good price for your current car, but that could be subsidised by an inflated price for your new car. You would need to ask for a cash price to get a real idea of what you are being offered for your old car.
Middleman sale (wholesalers who buy cars for cash)
Pros: Speed and convenience.
Cons: These buyers sell most or all of these vehicles to other car dealers. This middleman adds a further layer of cost, so you are virtually certain not to get the best price.
Auction
Pros: It’s quick and the pricing is usually transparent.
Cons: The pricing is not necessarily great – most buyers are dealers, the auctioneers charge quite hefty fees (4 to 8 per cent is common) and the vehicle needs to be present at the auction, posing a logistics challenge.
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