Should I trade in my car or sell it?
If you’re ready to move on from your current vehicle, you may be wondering: Should I trade in my car or sell it?
The good news is that you don’t necessarily have to choose between trading your vehicle at a dealership and going through the hassle of selling it privately.
At Mercedes-Benz of Austin, you have two straightforward options: sell your vehicle directly to us or trade it toward your next vehicle.
Which one makes more sense depends primarily on what you plan to do next.
If you’re already shopping for another vehicle, a trade-in can make the transition from your current car to your next one simple. If you just want to sell your vehicle and aren’t ready to buy something else, you can sell it directly to us.
Here’s what to consider before deciding.
What’s the Difference Between Selling and Trading In a Car?
The biggest difference is what happens after you hand over the keys.
Selling Your Car
When you sell your vehicle directly to Mercedes-Benz of Austin, you’re simply selling us the vehicle.
You don’t have to purchase another car from us. You don’t have to trade it toward a Mercedes-Benz. And your current vehicle doesn’t have to be a Mercedes-Benz.
We’ll evaluate your vehicle, provide an offer, and you can decide whether you want to sell.
Trading In Your Car
When you trade in your vehicle, you’re selling your current car to the dealership as part of purchasing your next one.
Your vehicle is appraised, its trade-in value is determined, and that value can then be applied toward your next vehicle purchase.
So the simplest way to think about it is:
Want another vehicle? Consider trading in.
Just want to sell the vehicle you have? Sell it directly to us.
When Does It Make Sense to Trade In Your Car?
Trading in your car may make sense when you’re already planning to replace it.
Instead of selling your current vehicle separately and then beginning the process of buying another one, a trade-in allows you to handle both transactions through the dealership.
You might consider trading in if:
- You’re ready to purchase your next vehicle
- You want to apply your current vehicle’s value toward your next purchase
- Your family needs a larger or smaller vehicle
- You’re ready to upgrade to a newer model
- You want to move from a sedan into an SUV
- You’re downsizing from a truck or large SUV
- You’re interested in moving into a luxury vehicle
- You’re considering a hybrid or electric vehicle
- Your current vehicle no longer fits your lifestyle
For example, maybe your family has grown and your sedan isn’t giving you enough space anymore. Or perhaps the kids are older and you no longer need a large three-row SUV.
Maybe you’ve spent years commuting around Austin and are simply ready for something newer.
Whatever the reason, trading in can make the transition from one vehicle to another more straightforward.
When Does It Make Sense to Sell Your Car?
Selling your vehicle directly may make more sense when you don’t need another vehicle right now.
Maybe your household has an extra car. Perhaps you’ve started working remotely and don’t commute nearly as often. Maybe you’re moving, downsizing, or simply realizing that a vehicle spends most of its time parked.
You might consider selling if:
- You have an extra vehicle
- You aren’t planning to replace your current car
- Your household no longer needs multiple vehicles
- Your commute has changed
- You’re working remotely more often
- You’re moving somewhere you won’t need the vehicle
- You inherited a vehicle you don’t plan to keep
- You no longer need a truck or large SUV
- You simply want to turn the value of your vehicle into money you can use elsewhere
And selling doesn’t have to mean listing the car yourself.
Mercedes-Benz of Austin purchases vehicles directly from Austin-area owners, even if they aren’t purchasing another vehicle from us.
Do I Have to Sell My Car Privately?
No.
This is an important distinction when comparing selling a car vs. trading it in.
Selling your car doesn’t necessarily mean photographing it, creating an online listing, answering messages, negotiating with strangers, or arranging test drives.
You can sell your vehicle directly to a dealership instead.
Selling privately can require you to:
- Research an asking price
- Clean and photograph the vehicle
- Create and manage listings
- Respond to calls, texts, and messages
- Meet with prospective buyers
- Coordinate test drives
- Deal with low offers or negotiations
- Handle buyers who don’t show up
- Determine how to accept payment
- Complete the necessary paperwork yourself
If you don’t want to manage those steps, you can have Mercedes-Benz of Austin appraise your vehicle and make you an offer instead.
Is It Better to Trade In or Sell to a Dealership?
That depends less on which option is “better” and more on what you need from the transaction.
If you’re buying another vehicle, trading in can be a natural fit because you’re already completing a vehicle purchase.
If you’re not buying another vehicle, selling directly to the dealership allows you to walk away from your current vehicle without having to replace it.
Either way, you can start at the same place: find out what your current vehicle is worth.
Once you know its appraised value, you can decide whether you want to sell it or apply that value toward your next vehicle.
Should I Trade In My Car If I Still Owe Money on It?
Having an auto loan doesn’t necessarily mean you have to wait until your vehicle is completely paid off before exploring a trade-in or sale.
The important numbers are your vehicle’s value and your current loan payoff amount.
If Your Car Is Worth More Than You Owe
If your vehicle’s appraised value is greater than your payoff amount, you may have positive equity.
For example, if your vehicle is worth $25,000 and your loan payoff is $19,000, the difference is $6,000 in positive equity.
If You Owe More Than Your Car Is Worth
If your payoff is higher than the vehicle’s value, you have negative equity.
For example, if your vehicle is worth $20,000 but you still owe $24,000, there is a $4,000 difference.
Negative equity doesn’t necessarily prevent a vehicle transaction, but it does affect your options and should be considered carefully before moving forward.
If you still owe money on your vehicle, knowing both your payoff and its current appraised value is an important first step.
Should I Trade In a Paid-Off Car?
You can.
If your vehicle is paid off, there is no remaining auto loan payoff to account for when determining your equity.
You can have the vehicle appraised and then decide whether you want to sell it directly or trade it toward another vehicle.
A paid-off vehicle may also give you more flexibility. If you don’t need another car, you can simply sell it. If you’re ready to upgrade, its trade-in value can be applied toward your next purchase.
The right choice comes back to what you want to do next.
Does My Car Have to Be a Mercedes-Benz?
No.
You can sell or trade vehicles from a wide variety of manufacturers at Mercedes-Benz of Austin.
That includes brands such as:
- Toyota
- Honda
- Ford
- Chevrolet
- GMC
- Ram
- Jeep
- Subaru
- Nissan
- Mazda
- Hyundai
- Kia
- Volkswagen
- Tesla
- Lexus
- BMW
- Audi
- Volvo
- Acura
- INFINITI
- Cadillac
- Land Rover
- Porsche
- And more
We consider cars, trucks, SUVs, luxury vehicles, hybrids, and EVs.
Frequently Asked Questions About Selling vs. Trading In a Car
Should I trade in my car or sell it?
If you’re planning to purchase another vehicle, trading in can allow you to apply your current vehicle’s value toward your next purchase. If you aren’t replacing your vehicle, selling it directly to a dealership may make more sense. Mercedes-Benz of Austin offers both options.
Is it easier to trade in a car than sell it?
Trading in allows your current vehicle and next vehicle purchase to be handled as part of the same process. Selling directly to a dealership can also be straightforward if you aren’t buying another vehicle.
Can I sell my car to Mercedes-Benz of Austin without buying anything?
Yes. You don’t have to purchase another vehicle from Mercedes-Benz of Austin to sell us your current vehicle.
Can I trade in a car that isn’t a Mercedes-Benz?
Yes. Mercedes-Benz of Austin considers trade-ins from a wide variety of manufacturers.
Can I sell my car instead of trading it in?
Yes. If you don’t want another vehicle, you can have your car appraised and consider selling it directly to Mercedes-Benz of Austin.
Can I sell or trade a car with a loan?
Potentially. Your current payoff amount and the vehicle’s appraised value will help determine what is involved in the transaction.
What if I have positive equity in my car?
Positive equity means your vehicle is worth more than your remaining loan payoff. How that equity is handled depends on whether you’re selling or trading the vehicle and the specifics of your transaction.
What if I owe more than my car is worth?
That is known as negative equity. It doesn’t necessarily prevent you from selling or trading, but the difference between the vehicle’s value and loan payoff will need to be addressed.
How do I know how much my trade-in is worth?
Your vehicle’s year, make, model, mileage, condition, history, equipment, and current market demand can all affect its value. A vehicle appraisal can give you a more specific assessment.
Should You Sell Your Car or Trade It In?
Ultimately, the decision can be simple.
If you’re ready for another vehicle, consider trading in your current one.
If you don’t need another vehicle, consider selling your current one directly to Mercedes-Benz of Austin.
Both options allow you to avoid the work that comes with finding a private buyer yourself.
And both start with the same question:
What is my car worth?
Get your vehicle appraised at Mercedes-Benz of Austin, review your options, and decide whether selling or trading makes the most sense for you.
You don’t have to own a Mercedes-Benz.
You don’t have to purchase another vehicle if you simply want to sell.
And you don’t have to deal with a private sale to move on from your current car.