A private sale usually gets a higher price. A trade-in usually costs less time and, in many states, less tax. Here is how to know which one leaves more money in your pocket.
The price gap
Private buyers pay close to retail; a dealer pays wholesale so it can resell. On an everyday car the gap is often 10 to 15 per cent.
The tax credit
In many states you only pay sales tax on the difference between the new car and your trade-in. On an expensive car that credit can close most of the gap.
Your time
Photos, adverts, calls, viewings and paperwork take weeks. Put a price on your weekends before you decide.
The safe middle
Get a written trade-in offer first. If a private buyer beats it by more than the tax credit and your time are worth, sell privately.
On “Trade-in vs private sale: the real numbers”.
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