Trading-In vs. Selling
What is Right for me?
Make it easy on yourself
We have more demands on our time these days than ever before, so why add another item to your 'to do' list? Selling a vehicle privately takes a significant amount of time and effort. In order to sell your used vehicle you'll have to take care of all of those little items you overlook day to day, clean the vehicle from top to bottom, wait for a sunny day to get some good photos and all of that is before you even advertise the vehicle! Then you need to run a classified ad, field phone calls and take time out of your day to have strangers come to your house to view the vehicle. After all of that is taken care of then the real fun begins, the negotiation!
Pay less tax
In BC, you pay tax only on the 'price difference' between the vehicle you are trading in and the vehicle you are purchasing from a dealership (new or used). If you sell the vehicle yourself you will have to pay tax on the full selling price of your next vehicle. For example, if you buy a new vehicle for $20,000 and trade-in your old vehicle for $7,500 you will only pay tax on the difference in price, or $12,500. That extra tax you don't have to pay is the same as money in your pocket and without the hassle of selling the vehicle privately.
Avoid major vehicle maintenance.
If you sell your vehicle privately, you will need to ensure it is maintained and it is in safe working order. This is extra worry on your part that can also be very costly if you don't use trustworthy, factory trained technicians. It can include fixing brakes, tires and other big items out of your pocket. If you trade-in with a dealership, they look after all of the reconditioning expenses and take the worry out of the process.
Be done with it
If you trade-in your vehicle, you prevent any issues with a dissatisfied buyer later on. What happens if the engine breaks down or the transmission goes out? If you sell your vehicle, the new owner knows where you live and may seek compensation. If you trade-in your vehicle, the dealership assumes all of the responsibility and you can walk away carefree.