Trade or Sell Your Vehicle to a Dealership — The Benefits

If you're considering replacing your vehicle, you've probably wondered: is it better to deal with a private individual to resell your vehicle or to sell or trade it directly to a dealership, even if the latter might offer you a price below its market value?

Don't be fooled, there are a multitude of benefits to going through a dealership to sell or trade your vehicle; we tell you why!

Advantages of Selling Your Vehicle to a Dealership

As mentioned earlier, dealing with a private individual may allow you to potentially obtain a better price for your vehicle at first glance. Why? Simply because you would have sold your car at its market value, whereas the dealership offers you the book value, which is lower than the market value, as the dealer will have to account for any potential repair and aesthetic costs…

This may seem appealing, but here's a detail not to forget:

All these costs, you will have to engage yourself if you choose to present your vehicle in its best light in classified ads, not to mention the time you will need to dedicate to it. This brings us to the next point.

Time and Effort Savings

Trading in your car at your dealership has numerous positive aspects; indeed, they will take care of the repairs and resale of your vehicle, the change in registration, etc.

On the other hand, if you choose to sell your vehicle on your own, you will have to:

• Gather all the documents related to your vehicle: owner's manual, maintenance bills, recalls made, warranty documents (if applicable), etc.
• Set the selling price;
• Find a buyer;
• Establish a sales contract
• Go to the SAAQ to make the registration transfer (where the buyer will have to pay the QST on their new vehicle)
• Etc.

Selling your car at the dealership thus represents a significant saving of time and hassle!

Greater Negotiation Possibility

Various online tools, like Kelley Blue Book Canada or the Canadian Black Book, can give you an approximate idea of the value of your vehicle based on its mileage, general condition, and equipment list. By already knowing how much your vehicle is worth, you will be better positioned to negotiate the value of your exchange.

Benefits of Trading Your Vehicle to a Dealership

Trading your car in at a dealership also offers you much more flexibility than if you were doing business with a private individual.

Financial Flexibility

If you intend to buy another vehicle, selling your car at the dealership will enable you to benefit from a significantly more attractive price for the new one. Not only will the amount the dealer gives you for your vehicle be deducted from the base price of the model you desire, but by doing so, as this price will have been reduced, the amount of applicable taxes will also be lower; you will therefore make a double saving!

Of course, this scenario is possible and more advantageous if your vehicle is fully paid; however, it is possible to sell your vehicle to the dealership even if you have not finished paying for it. The dealer will then take care of paying off your lender and, if there is money left, it will be applied to the sales price of your next vehicle.

As you can see, it is possible to proceed with the trade of a financed vehicle by going through a dealership, which will take care of all the necessary formalities!

Tips for Maximizing the Resale Value

Whether you're dealing with a private individual or a dealership, it's in your best interest to present your vehicle in its best light.

Maintenance and Prior Repairs

In order for your vehicle to present the best value possible, make sure you are up to date on your maintenance schedule; also ensure that all minor damages have been repaired, whether mechanical or aesthetic.

Presenting Complete Documentation

Moreover, having the complete history of your vehicle is a must, especially if it's a brand different from the one you plan to buy at the dealership; if you're already doing business with the dealer, they have the full maintenance history of your vehicle, if you bought it new from them.

If your buyer is a private individual, they will be reassured to know the history of the vehicle they are about to buy.

Highlighting Special Features of the Vehicle

Focus on the features that represent good selling arguments, like the presence of heated/ventilated seats at the front and/or rear, air conditioning, the high-end audio system if applicable, its energy efficiency (and even more so if it's a hybrid, plug-in, or electric model), its cargo space, etc.

How Do Dealerships Determine the Value of Your Car?

Dealers will consider several criteria to evaluate the value of your vehicle:

• The make, model, and year;
• The mileage;
• The location;
• Its general condition;
• The popularity or rarity of equipment or version;
• Etc.

This inspection may seem basic, but the dealer knows they will have to carry out some "refurbishing" on used vehicles; this could be, for example, replacing brakes or windshield wipers or, in other cases, aesthetic repairs (seat recoveries, painting, etc.) or even major repairs (replacing the engine, for example).

Understanding the Trade Process with a Dealership

Car dealerships handle the entire contractual and legal process during the sale or trade of the vehicle, which greatly eases your life and allows you to concentrate on the purchase of your new vehicle.

However, there are a few points to consider for the transaction to be as smooth and harmonious as possible.

Mistakes to Avoid When Negotiating with a Dealership

Just like when selling with a private individual, it is important to be well prepared before going to the dealership for the sale or trade of your vehicle, and certain pitfalls must be avoided.

Lack of Knowledge of the Real Value of Your Vehicle

As you probably know, a new vehicle loses on average, depending on the brand and model, about 20% of its value in the first year, and up to 50% in 3 years! So, if you paid $45,000 for your vehicle 3 years ago, don't expect to receive $40,000 as trade-in value, even if it spent most of its time nice and warm in your garage!

Take the time to learn about the real value of your vehicle as well as its list price; this way, you'll avoid bad surprises and arrive better prepared at the dealership.

Lack of Preparation before Negotiation

Yes, it is possible to negotiate at the dealership! By having a good knowledge of the market, what the competition has to offer, and the value of your vehicle, you could easily save on the purchase of your vehicle!

Conclusion

If you wish to replace your vehicle and trade yours in or learn about our current promotions, contact us at Volkswagen Lauzon in Boisbriand today!