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If you’re looking to buy a new car or SUV, you’ll probably need to get rid of your old one first. Very few people can afford to buy a new car and continue to make payments on their other car. Even if you own your car outright, it’s still expensive to maintain two cars. Why pay for two cars on your insurance if you don’t have to?
So, once you’ve decided that you’re ready to sell your car, you need to decide how you want to go about doing that. Do you want to do a private sale? Maybe you want to trade your car in when you buy a new car. But, have you ever considered selling your car to a company like Carmax?
Here, we’ll talk about the pros and cons of the different types of sale options. We’ll also take a look at what people have said about selling their car to Carmax.
What’s the Difference Between the Various Sale Options?
When it comes to selling your car, you have a few options. If your car is already paid off, you can sell it privately, trade it in, or sell it to a company like Carmax. If you still have a loan on your car, then selling it privately isn’t really an option.
Regardless of how you sell your car, you’re going to need a few things:
- You need to get an appraisal. Anyone who buys your car is going to want to see how much it’s worth. And, you need to know what it’s worth so you know how much to ask for. The buyer is also going to do their own appraisal so they know you’re charging a fair price.
- You are going to need a clean title. Believe it or not, some people lose their title and when it’s time to sell their car, they can’t find it. If this happens, you’re going to need to go to the DMV and get a duplicate title. Keep in mind – a lot of private buyers won’t be satisfied with a duplicate title. They just don’t trust it.
- You must have your registration. It has to be valid and current. It also has to be in your name only. If anyone else is on the title or registration, they will have to agree to the sale and sign off on any sale papers.
What are the Benefits and Drawbacks of Selling Your Car Privately?
If you’re thinking of selling your car privately, there are pros and cons. When you sell your car this, way you do control the price. If you’re willing to wait for the perfect buyer to come along, you can hold out and wait for a higher price. There isn’t a whole lot of negotiating when you trade your car in. It’s also nice to control the sale of your car. For example, if you have a car with sentimental value, you may only want to sell it to someone you know will take care of it.
While there are good things about selling your car privately, there are also a lot of drawbacks. Some of these include:
- It may take a long time to find a buyer
- You have to post your ad on local sites and respond to a lot of inquiries
- A lot of people express interest but aren’t really serious about buying your car – it can waste a lot of your time
- It's not easy to find people who have cash on hand to buy your car
- You have to deal with meeting people for test drives, etc. It is inconvenient and time-consuming
Why Wouldn’t You Just Trade Your Car In?
If you’re going to buy a new car, it seems like it makes a lot more sense to just trade your car in. But, this isn’t always the best idea. Car dealerships want to get you into a new car – fast. They try to pressure you to buy a car the same day you come into the shop. This means they may offer you a low-ball trade-in offer knowing you want to leave in a shiny, new car.
Dealerships also inflate the trade-in value of your car just to get you into a more expensive new car. For example, they may offer you $1,000 more than your car is worth to get you into a car that's $5,000 more than what you planned to spend. This makes sense for them but not a lot of sense for you.
It May Be Better to Sell Your Car to Carmax
Lately, a lot of people are selling their car to companies like Carmax instead of trading it in or selling it privately. You’ve probably seen commercials for Carmax on television. You may have even heard ads on the radio. They advertise for a reason – they want as many people as possible to sell them their cars. This way, they can raise the price and turn around and sell it to someone else.
Some of the benefits of selling your car to Carmax include:
- You get a written offer – not just a verbal estimate or appraisal
- You leave their shop with payment in hand – there is no waiting period
- They'll arrange to pay off your current loan
- They don’t care so much about how clean your car is – they're not as picky as a private buyer or dealership
- They'll buy your car whether you buy one from them or not
- You'll get a free appraisal within minutes
- If you live in certain regions, you can even get your appraisal online
What Have People Said About Using Carmax?
Before you decide if it’s a good idea to sell your vehicle to Carmax, it’s a good idea to know what people have said about them. For the most part, people have good things to say. They admit that it’s convenient and fast. Some people, however, have complained that they think they could’ve gotten more money if they sold it privately. But, you have to take the good with the bad.
