Should you sell your car directly or through a dealer?

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If you are looking to sell your car, one of the decisions to make early on in the process is if you are going to sell the car directly to the buyer or if you are going to go through a dealer. Both options have benefits but both also have inherent risks. There are some points you should consider before you put your car on the market starting with determining the approximate value of your car. This information is easily available through online valuation tools. All you have to do is put in the make of your car, the model number and the year it was bought. With this figure in mind, you can move on to determining if you stand to make this amount if you sell the car privately or list it with a dealership.

One of the primary benefits that you have, when you sell your car directly to the buyer, is that you eliminate the middleman’s fee, which in this case is the dealership fee. Thus you stand to make more money through this sale. You may be in the market for a new vehicle yourself and it might seem easier to just sell your old car to the dealership that you are buying the new car from. However, if you sell to a dealer, you get a wholesale value for the vehicle, whereas when you sell directly to a private buyer you are getting close to the retail value of the vehicle.

If you think it’s too much of a hassle to look out for a buyer and it is easier to sell it to a dealership there are certain steps involved. In order to do it right, you will need to take the vehicle to several dealerships, have them appraised and negotiate to get the right price. 

On the other hand, a dealership does have a roster of loyal clients are may seem like a more trustworthy option for a buyer looking to buy a used car. The buyer might want to look for other models as well and this is where the dealership has an upper hand. Rather than reach out to a private seller and visit his home to inspect the vehicle, the buyer may be more comfortable walking into a dealership and taking his pick. 

Most dealerships will take care of the entire process of the sale for you. If for instance, you are in UAE,  all you have to do is list your car for sale in UAE and then wait for the money to come into your bank account. They will have the car inspected by a certified mechanic. They will handle the relevant paperwork with ease, making it a smooth transaction. 

When it comes to selling the car directly, the onus of getting the car inspected by a professional mechanic lies with you. That means looking for a reliable mechanic and you have to bear the additional cost that goes with it. You will also have to take care of the paperwork involved in the sale of the vehicle.

The buyers trust in a dealership brand and its quality may result in them agreeing to whatever price is quoted with little or no negotiation. Whereas when you sell directly to the client, they may not be that comfortable and the whole transaction may just be awkward. 

Dealerships are able to offer their clients certain incentives and discounts to sweeten the deal that an individual seller will not be able to offer to the buyer. Dealerships also offer financing options and extensions on warranties which an individual seller will not be able to offer, hence making the buyer turn to a dealership.

Sometimes it is easier to negotiate face-to-face with the buyer and get a better price. Since you have driven the car, you are fully aware of the condition it has been kept in and hence will be able to give the buyer details that he or she may require. Whereas with a dealership, it’s just another car and another sale so the will not be fully aware of the history of the car, the frequency at which it has been used to drive within the city versus out of the city. If there have been any major repairs or accidents etc.

Selling your car online is also another viable option, you can list it on various sites without having to go to the dealership.

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