Should You Trade-In Or Sell Your Car? Which Offers You the Best Price?

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A car can be one of your most significant assets in Singapore. Buying and selling are always significant decisions and you should always pick the option that gives you the best value.

It’s easy to know when your car is due for an upgrade, but choosing how to dispose of it can be rather tricky.

Most car owners often choose the ‘trade-In’ route due to the sheer convenience. However, does it actually give you the better deal?

In this article, we’ll explore both the ‘trade-In’ or ‘sell’ options to see which gives you the best price for your car.

Trade-In

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How Does Trading-in Work?

Trade-in happens when you sell your old car with the intent to purchase a new car, usually through the same dealer. The dealer will buy back your old car from you and use this amount to offset your new car's purchase.

A scenario may occur when the dealer offers a higher trade-in value to aid you with the new car's down payment. This is called ‘overtrading’.

Here is an example: the new car you wish to buy costs $100,000 with a minimum downpayment of $40,000. When he tries to overtrade, he’ll raise the price to $110,000, giving $10,000 more than what the trade-in car is worth.

Now you, the buyer, will have $10,000 more from your trade-in, which also lowers your downpayment from $44,000 to $34,000.

Advantages

Doing a trade-in is convenient and efficient for you as the whole buying and selling process happens in one location (eg. authorised dealerships).

Selling a car can take days to weeks depending on both parties’ availability. One thing is for sure, the dealer will settle your paperwork promptly. It involves your car's past service details and total price for comparison.

Trade-in is recommended if your car is worn out and needs serious repairs. Since it will be unlikely to sell it off for a reasonable price.

Lastly, if you have an unpopular car make or model, you might face some difficulty finding a dealer to take in your car for a good price. In either case, the dealer will take this burden off your shoulders, and you’ll get money to put into your new car!

Disadvantages

Trading in can be one of the fastest and easiest ways to buy and sell your car. However, you may not get the best price for the old car you are selling and you're faced with limitations when doing so.

It is always better to have a second opinion, either by asking other dealers or through independent quotation platforms like Motorist. You'll have a wide range of choices, and our consultants will help you get the best offer!

Selling

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The meaning of this is straightforward, but did you know that there are various ways of selling your car? You can either sell your car through consignment, to a car dealer or a direct buyer. Each form of selling has its own advantages and disadvantages.

Advantages

The biggest advantage of selling your car is obtaining a higher value than trading-in, i.e. consignment, direct buyer or your preferred car dealership.

This is advantageous, especially if your car is in a good, marketable condition; why take in less when you can get more out from your car?

To get a good value of how much your car goes for in today’s market, you can always ask one of our friendly sales consultants and we’ll provide free quotations for you.

Disadvantages

On the flip side, you'll have to factor in the condition and on-going depreciation value of your car. Basically, the longer the time you take to sell your car, the lesser returns you'll get.

With that said, there is a set of protocols when selling your car. Driving around to look for your preferred quotations from the various car dealerships, and present your car's particulars to them.

But at Motorist, we guaranteed it'll be done easily within 24 hours!

Conclusion

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Car prices are competitive these days with car owners having easy access to various digital platforms. It assures you the conveniences you'll need as compared to trading-in.

It is always better to get a hassle-free second opinion through independent quotation platforms like Motorist. Enjoy a free car valuation service on us today, all settled within 24 hours!

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