Why a trade-in pays less
A dealer who takes your car in trade has to sell it again. Before they can, they usually clean it, service it, fix anything wrong and advertise it, and they need to make a margin when it sells. All of that comes out of the price they offer you.
A private buyer has none of those costs. They pay closer to what the car is worth on the road, which is why a private sale usually puts more money in your pocket.
How big is the gap?
It depends on the car. The gap tends to be bigger on popular, well-kept cars that are easy to sell, because a private buyer will pay a fair price for them. It tends to be smaller on old, high-kilometre or damaged cars, where a dealer may not want the car at all and private buyers are harder to find.
The way to know is to get a real trade-in offer, then look at what similar cars are listed for privately. The guide to pricing your car shows how.
If the gap between the two numbers is more than the hassle is worth to you, sell privately. If it is not, trade in.
What selling privately takes
- Getting the car ready: a clean, tidy car makes a better first impression.
- A listing: photos, a description and a price. See how to write a car ad that sells.
- Talking to buyers: answering messages, showing the car and letting buyers test drive it.
- Getting paid safely: waiting for the money to clear before you hand over the keys. See car selling scams and how to spot them.
- Time: finding the right buyer can take a while, so selling privately suits you best if you are not in a hurry.
When trading in makes sense
- You need the car until the day you buy the next one and cannot be without one in between.
- The car is hard to sell privately: very old, very high kilometres, or with a big fault.
- The dealer gives you a strong offer to win the sale of the new car. It is worth asking.
- You do not want strangers contacting you or coming to your home.
A middle path
You can do both. Get a trade-in offer first, so you know your lowest number. Then list the car privately for a week or two at a fair price. If it sells, you keep the difference. If it does not, the trade-in is still there, though offers can change, so ask how long one is good for.
Common questions
Can I negotiate a trade-in offer?
Yes. Ask for the trade-in price and the price of the new car separately, so a good number on one is not hidden by the other.
Is it safe to sell a car privately?
It is when you take a few simple steps: meet buyers somewhere sensible, go on the test drive with them, and never hand over the keys until the money is in your account.
Does it cost anything to sell privately?
It can cost nothing. On CarListing a Standard listing is free, takes no commission and does not expire.
