I'm thinking about getting rid of my 04 MCS and getting a new one (probably going to wait for the 08's). anyway, my 04 was my first brand new car, and I've never actually gone through the process of selling a car (they always just got passed down to family members), so I'm trying to figure out whether I should trade my car in at the dealer or sell it on my own. Can you guys give me some advice on the pros and cons of selling vs trading? I was looking at the blue book, and I can obviously net more money selling it on my own, but with a lot of increased hassle. The average trade-in price is about 2 grand less than a private party sale, so trading seems like a bad idea. are there any advantages to trading in that I'm overlooking?

thanks in advance for any input you can give me (and an extra thanks for all of you that have been answering my questions in the couple other threads I started. I know all the questions can get annoying, but all of the information is very helpful and I realy appreciate it)!

 

I've always had good luck selling cars and motorcycles in local newspaper classifieds. It is a hassle, but is worth the extra effort.

 

Only if you consider getting 2k-4k more than trade in value worth it

( I would! )

 

I would think selling it would be better. I was considering trading in my 02 Kia Rio but I found a buyer for it, I would have gotten maybe 2-3k for it as a trade in but I'm getting 5 as a private party sale.

Yes, it can be a hassle trying to sell a vehicle but a Mini pretty much sells itself. Take a look at the blue book values for the year and options, look at the trade in and private party values and then make your decision.

Hmm...I don't know your options, mileage or zip code but for me here if I used my zip code with the standard options (I went with what kbb.com gave me to start with) and 36000 miles in good condition. The private party value is 20150 and the trade in is 17725.

 

my car has the same mileage, and I got the same figures. I had heard something about a tax break if you trade your car in, and I thought It might close the gap between the kbb trade in value and the private party price. The main reason I'm considering the trade in is because when I tried to sell the car when I lived in San Francisco I just got a lot of people just using me for joyrides and people who had no idea how much the car was worth and offered me WAY lower than blue book. Now I'm back in New Orleans, and I'm not sure how many people around here have a lot of cash to drop on cars (lots of people are still trying to rebuild their houses, don't know if most people in that situation would buy a niche car like the mini). I think I'm going to give myself a month or two to sell it, then I'm going in for a trade.

anyone on here ever sold a car on ebay?

 

Because you only get taxed on the difference. Hypothetically, if the dealer gives you $15k trade in toward a $20k car; the sale was for $5k... not $20k.

 

Some good ideas here but more complicated.

First, forget about the guidelines online. They mean nothing. The only thing that really means anything to a dealer is the going wholesale auction prices for cars in YOUR area. Check galves.com ($5 for a day) to see the real wholesale auction prices for your car. If you go to a dealer to trade-in, you might be in for a rude awakening. Most options are worthless except for leather, nav and sunroof. Aftermarket options worthless to a dealer and may cause the price to be lower.

Second, all states are different. The tax break might not work in your state. If you have to read your state's tax laws.

Upside to trading in:

• Easy to do
• Guaranteed money if you need it to buy the next car

Downside to trading in:

• Most likely less money than private sale

If you sell privately, again it depends upon your state laws

Upside to private sale:

• Probably get more money

Downside to private sale:

• You might be advertising for a long time. NO guaranteed money if you need it. If you really want to sell it quickly, you need to price it reasonably and not just hope to get the best money. Just look at how many cars for sale here that sit for months and the original asking price drops and drops and drops.
• Dealing with the people. Dealing with your time. Dealing with freeloaders that just want a ride. Dealing with all the hassles associated with advertising, talking to people, people who don't show up when they say they will, etc.
• Some states required YOU to get the car inspected before sale (again you have to read your state laws)
• Irritated buyers who find a problem AFTER the sale

Bottom line ... you have to figure out the cost/benefit for what is important to you. If you want quick, easy and guaranteed money, then trade it in. If you want more money and can deal with the hassle/time, try to sell privately.

Best of luck!

 

In Texas, it's as dNeal says - you're taxed on the difference. At 6.25% car taxing, if you use his example of $15k trade vs $20k purchase price, you're taxed on that $5k ($312.5) and save almost $1000. Makes your $15k trade closer to 16k and saves the hassle.

But...some dealers will also run the title on a private sale (or an in-and-out as my dealer is calling it)...ie, I found a private party for my sale, and they're treating it as a trade in at my dealer. So, I'm getting the private party sales price and the tax break. Sweet!!

I'd do what you're doing...give it some time as a private party (until you get beyond frustrated or sell it) and if you can't get a buyer just trade it in. good luck!!

 

You might check http://www.autotrader.com

When I went to sell mine there were 16, 2003 Mini's for sale in my area! Took 2 months to sell at a reduced price.

 

As he said you will save sales tax (8.3% here) on the amount the dealer gives you as a trade ($1250 on a trade of 15K). But what he refers to above is something I never heard of and is worth looking into. You get the best of both worlds. IMO you will lose at least 2-3K trading that car. And the dealer should be able to tell you real quick what they'll give you for it especially if you bought it and had it serviced there.

 

I recently sold my 2005 MINI private party when I ordered a new 2007 MCS. I'm sure it depends on the market where you live, but if you price it right you should move it quickly and should do much better financially than trade-in to a dealer. The dealer is only going to give you wholesale at best. I drove my '05 for 18 months, put 13,000 miles on it and sold it for only $150 less than I paid for it (bought it used with 12,000 miles). The first person who called and looked at it bought it on the spot, so I had a very pleasant experience. I like your plan - if you have time before delivery of your new one try to sell it private party. You can always take the dealer offer when your new car comes in. Best of luck.

 

You are exactly right!


prepare for a slap of reality when you go in for trade if you expect kbb.
Unless the car you are buying is way overpriced. The dealership is going to make a pretty big profit.