Is It Better to Trade In or Sell My Current Vehicle?

May 21, 2015

Whenever you are getting ready to purchase a new or used car in El Paso, you have to decide what to do with your existing car or truck. Most people might be tempted to simply trade it in at their El Paso car dealership and use it for the down payment on their next vehicle purchase. However, this does not always give you the most value out of the existing vehicle. Before heading to your Kia dealer in El Paso, take the time to conduct your own research to find out exactly what your vehicle is worth.

There are a few different websites you can use to determine the value of your trade-in, such as Kelley Blue Book or Edmunds. Keep in mind there is a big difference between private resale values and trade-in values obtained from these online sources. Private resale values are the average amount you could potentially expect to get by selling the vehicle yourself to another person. Trade-in values are typically lower because the dealership normally does not give you the full resale value. Instead, the difference between what they offer and the private resale value is their buffer after they recondition the vehicle and put it up for sale on their used car lot.

If there is at least a thousand dollars or more difference between the private resale and trade-in values, it is worth your time to attempt to sell the vehicle on your own. Even though you might have to wait to purchase your new car, you will have a larger down payment. Additionally, the more cash you have upfront often results in being able to negotiate a better sales price on the new vehicle. The dealer is not taking a trade-in and potentially losing money if the vehicle does not sell or if they have to sell it at a discount.

On the other hand, it is better to trade in your current vehicle whenever there is only a few hundred dollars difference between the private resale value and the trade-in value. It is not worth the time or hassle to put the car up for sale on your own. Instead of waiting for a buyer to come along and make an offer on the vehicle, you can get rid of it quickly at your El Paso car dealership. The dealer takes care of all title transfers and other paperwork, too.

Another instance where it is better to trade in your vehicle at the car dealer is any time they are running a trade-in incentive deal. These promotions either match the private resale value, or give you an additional cash allowance on top of the trade-in amount. Just remember to ask the dealership about any special terms or conditions, as the added incentive may only be available with new car purchases or on select models. For more information about current specials, incentives, and offers, visit Integrity Kia today, or call us at 915-856-2982.