I want to buy a new car. I have a car now. Should I trade it in or sell it myself?
If you trade-in your old car, the dealership will re-sell it either on a used car lot, to another dealer or at an auction. Whoever buys it from there likely has the intent of selling it for a profit. They will sell it for the retail value. The value you received was a trade-in value and is less. The decision is one of convenience and whether you want to take the time to clean it up, advertise it, talk to potential buyers and possibly owner finance it if your buyer can't borrow the money from a lender. By accepting a lower trade-in value, you get less and transfer these responsibilities to someone else. Also, in states where a sales tax will be paid on your new purchase, the trade-in value is typically deducted from the amount to be taxed. This is a savings to you equal to the tax rate. If you do not need the trade-in value to facilitate your new purchase, you have the time to sell it yourself if you want to maximize your income with the additional work.
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If you trade-in your old car, the dealership will re-sell it either on a used car lot, to another dealer or at an auction. Whoever buys it from there likely has the intent of selling it for a profit. They will sell it for the retail value. The value you received was a trade-in value and is less. The decision is one of convenience and whether you want to take the time to clean it up, advertise it, talk to potential buyers and possibly owner finance it if your buyer can't borrow the money from a lender. By accepting a lower trade-in value, you get less and transfer these responsibilities to someone else. Also, in states where a sales tax will be paid on your new purchase, the trade-in value is typically deducted from the amount to be taxed. This is a savings to you equal to the tax rate. If you do not need the trade-in value to facilitate your new purchase, you have the time to sell it yourself if you want to maximize your income with the additional work.
