Should You Sell Your Car Before Buying a New One?
For most people living in the modern world, owning a car is an absolute must. There are many very good reasons that this is the case. Cars are more than simply a way to get around. Our society is increasingly spread out in all directions, and this makes having a car a practicality that is nearly impossible to avoid. Combine this fact with the certainty of cold winter temperatures in Canada, and you have a “no brainer,” as having a car is indeed a must-have item.
Many car owners are faced with a bit of a dilemma, should they sell their car before buying a new one, or hang onto their car and wait for the best deal possible? The bottom line is that you could spend a great deal of time waiting for someone to buy your car. This is strictly a “luck of the draw” type of situation where you could get the price you want for your used car in a day, a week or never! With this in mind, you might want to consider other option.
The uncertainty that comes along with selling your used car yourself is only one of the problems inherent with selling a used car. Another significant problem is that you may have to spend money advertising that your car is for sale. A third problem is that you will have to meet with people who are interested in buying your car, and that could take a great deal of time.
Even aside from the issues stated above, there is yet another potential issue. When you sell your own car, you will have to negotiate, and that could mean that you will not receive what your car is worth. If you have invested in additional upgrades to your car once you’ve purchased it, these upgrades will be difficult for you to calculate into the value of your car. That means that you may ultimately lose money. Finally, the entire process could be quite stressful as well!
So what should you do? While you might have luck selling your car on your own, the easiest and quickest route is to sell your car to a dealership. You can use the money you receive towards your new car, and you can also bypass all the hassle as well.
Often those who trade in their car to a dealer when they buy a new car end up saving a bit in taxes. For example, if you trade in your car for $8,000 and your new car costs $30,000, you may only need to pay taxes on the difference. This would mean that you would pay taxes on $22,000 instead of $30,0000. Additionally, a dealer will typically take care of all the paperwork and red tape for you saving you time and inconvenience.
Six Problems with Selling Your Car on Your Own
1) There is an element of luck and that means you don’t know when you will make a sell
2) You may have to spend money advertising
3) Meeting with people takes time
4) You will have to undergo potentially stressful negotiations
5) Any upgrades you’ve made may not be reflected in the sale price
6) The entire sales process could be very stressful!