auto

7 ways to get bottom dollar for a used car

Sell your car to a dealer
Next
2 of 9
Back
text

It's hard to beat it for convenience, but selling or trading your car at a dealership is a good way to lose out on $1,000 or more, says Melanie Kovach, senior director of private seller sales for AutoTrader.com, a website that hosts used-car classifieds.

"Generally, across all cars, it's about $1,000 to $2,000, but you can get more than that depending on what car you have," Kovach says.

Jack Nerad agrees. He's executive editorial director at Kelley Blue Book, a firm that specializes in setting values for used cars. Nerad says selling or trading to a dealer could net you up to 20 percent less than what you'd get in a private sale.

To get an idea of what the difference between a dealer price and a private sale price would be for your car, Kovach suggests logging on to a vehicle pricing site such as Kelley Blue Book, which lists prices for trade-ins and private sales.

Usually the gap between the two will be significant, because dealers make a big chunk of their profits by buying used cars at a lower wholesale price and reselling them on their lot at a higher retail price, she says.

If you sell your car yourself, "you can keep the profit that a dealer would be making if you traded your car in," says Kovach.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CAR & MONEY NEWSLETTER

Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.

advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Toyota, Land Rover win value awards

Toyota and Land Rover recently received top honors in ALG’s 15th Annual Residual Value Awards.  ... Read more


Connect with us