When it’s time to sell your car, you have two options: sell it privately or to a dealer. Some sellers’ first thought goes to money, and they think they’ll be able to get a much higher price if they sell their car privately, but that’s not always the case—plus, there are other things to consider besides the size of the check.
Here’s the deal:
While you may be able to get a little more money selling privately, you can find a dealer that will offer a price comparable to the private seller price in many cases. But you also have to factor in the time you’ll spend selling the car on your own. Is an extra $500 worth the time it will take you to:
- Post the Car for Sale Online
- Communicate with/Answer Questions from Potential Buyers
- Meet Interested Parties in Person to Show the Car
- Haggle Over Price
- Report Sale to DMV
In a best-case scenario, you’ll spend several hours trying to sell the car on your own. Instead, you could just drive it into the dealership and walk out with the money. Some dealerships, like Orr Chevrolet Fort Smith, even let you start the trade appraisal online.
Pros and Cons of Selling Privately vs. Selling to a Dealer
Let’s take a quick look at what’s good and about each option for selling your car.
Selling Privately
Pros
- May get a slightly higher price
- For specialty cars, including classic vehicles, you can hone in on the right buyers and, potentially, drive up the price
Cons
- Takes a lot of time to post and meet buyers
- Can be unsafe meeting potential buyers
- Many interested parties end up being a no-show
- Haggling/unreasonably low offers
- Can take weeks – or even longer – to sell your car
Selling to a Dealer
Pros
- Fast sale
- The dealer handles all paperwork
- Tax breaks in most states (including Arkansas) when buying another car
Cons
- Offer may be slightly lower than from a private seller
You may be wondering about the tax break for people who sell their car to a dealer. As the name implies, the trade-in benefit is only useful if you’re selling your old car to buy another vehicle. If that’s the case, you can deduct the amount of the trade from the sales price of the car you’re buying and only pay sales tax on the difference.
Here’s an example:
- You trade in a car worth $5,000
- You buy another car for $15,000
- $15,000-$5,000 = $10,000
- You only pay sales tax on $10,000
See the dealer or a tax professional for more information about this tax credit.
Unless you’re selling a classic or specialty car, selling to the dealer offers more benefits than selling the car privately. Orr Chevrolet Fort Smith offers fair pricing on trades, and we make it fast and convenient to complete the sale whether or not you’re buying another vehicle.
Get started online or stop by the dealership. If you are in the market for a new or quality pre-owned car, you’ll love our large selection, and our knowledgeable staff will help you find a great deal on a vehicle that meets your needs.
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