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Determining whether to sell your car to a dealership or sell it privately to an individual is a major decision.

Depending on the overall condition of your vehicle and its demand on the market, you could make a substantial amount of money selling your car one way or the other. Here are the facts about selling your car to a dealership.

Evaluate Your Current Situation

Before you get things in order to sell your vehicle, there are different factors you need to consider. Ask yourself these three questions:

  • Do you owe money on your current vehicle?
  • Is your vehicle a desirable model?
  • What is the current condition of your vehicle?

Do You Need to Pay Off You Car Loan

If you have a balance on your current vehicle, you’ll need to call your bank and ask for the car loan payoff amount. The payoff amount is a significant factor in your decision-making process.

How much you owe may determine how you try to sell your car. You have a greater chance of making more money with a private sale than selling your car to a dealership.

When you owe money on your vehicle, and the amount you owe exceeds your determined value, this is what’s known as being “upside down.” If you have extra funds to make up the difference to purchase a different car, you’re in business. If not, you may want to consider selling your vehicle privately. If you’re still interested in making up the difference to purchase a vehicle from a local dealership if you don’t have cash on hand, is to trade your car to the dealership and allow them to add the difference to your next purchase.

How In Demand Is Your Car?

A “desirable” vehicle is one that is in demand in the current vehicle market. For example, when gas prices increase, drivers are looking for fuel-efficient vehicles, such as economical or hybrid cars versus bigger SUV and similar vehicles that are labeled “gas guzzlers.”

Your Car’s Condition

Next, you need to inspect your vehicle. Look for scrapes, dents, chipping paint, and other signs of wear and tear. You also need to look for indications of damage that are not as obvious as others. When you’re selling your vehicle to a dealership, it should at least be in good condition, especially if you’re interested in making a few dollars. Take note of the overall condition of the interior and exterior of your vehicle. The better condition it’s in, the more money you will get. For a good estimate on how much your car is worth, check out Kelley Blue Book.

Advantages of Selling Your Car to a Dealership

If you’re pondering about selling your car to a dealership, there are a few perks you can enjoy.


Are you looking for a quick payday? Selling your vehicle to a dealership is a quick way to have some funds in your pocket. Dealerships are eager to add your vehicle to their lot because over 65 percent of annual of their vehicle sales are used cars.


Selling your vehicle to a local dealership is as easy as going to the dealership and signing some papers. If you want to save time, schedule an appointment, and have the required documents ready.


It doesn’t get any simpler than selling your vehicle to a dealership. Stressing about spending countless hours reading and filling out paperwork go away because the dealership handles everything for you.

Advantages of Selling Your Vehicle to a Private Buyer

Choosing to sell your vehicle to a private buyer has different advantages than if you were to sell your car to your local dealership.

Potentially Higher Payout

Regardless of how good a deal sounds from a dealership, there’s always the chance you could make more money selling your vehicle to a private buyer. Dealerships are like any other business – they maintain daily operations by making money. Dealerships pay wholesale prices when they purchase a pre-owned vehicle, which is often a lower price than you would be paid if you sold your car to a dealership.

More Money for Older Model Vehicles

Older model cars, with less than 100,000 miles on them, may have a better payday than you anticipated. Even if you have an older vehicle that has over 100,000 miles on it, there’s often multiple buyers who are looking for a vehicle like yours, especially if there’s a market for that particular vehicle.

Posting Advertisements is Simple

Posting ads may seem like an unnecessary daunting task, but it’s easier than you may think, especially when you use platforms like Craigslist,, Auto Trader, and similar platforms. Include multiple photos of the interior and exterior of the vehicle and a detailed description, and make sure your post is live by submitting the post, and you’re done!

Should I Sell My Vehicle to a Dealership?

There is no right or wrong answer to this question. If you’re looking for the easiest route, you should consider selling your vehicle to a dealership. If you want the most money for your vehicle, privately selling it is the best option. If your vehicle has extensive damage, and you don’t want to sell it or repair it, you should consider selling your vehicle to a junkyard. Either way, it’s a win-win situation for you!