There are many different ways to sell your car these days as compared to olden times. You can get great value for your car. Part exchange and classified ads are two ways to sell your car. Read the differences between them to decide which one is best for you.

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What is Part Exchange?

A Part Exchange is the future sale of one’s vehicle in return for another new vehicle.

A part exchange saves the seller from having to pay for advertisements as they are usually included as part of the price and also has very different tax implications compared to buying another new car with a loan.

In part exchange, you’re always going to remain the owner of one of the two vehicles. You usually have to pay more depending on what car you want to buy.

What are Classified Ads?

A classified ad is a means of advertising a vehicle for sale by placing an advertisement in a newspaper or online.

It is more common for people to sell their cars by placing classified ads as they are free of charge.

However, in such ways of selling you’ve to interact with many different possible buyers and find the best value for your car.

Which one should you opt for?

Comparing part Exchange and Classified advertisement can be difficult as there are so many factors to take into account. Factors such as comparing the costs of both including VAT will give us an idea of how much each would cost, however, we must also consider road tax, insurance, and for a dealer, more importantly, the bottom line.

Difference between Part Exchange and Classified Ads

Part exchange is where the buyer takes the old car back with them. The company then pays for a temporary replacement that has been given to the buyer. The company then sorts out the details of the trade-in. This type of transaction can be beneficial for both parties as it does not involve any down payments or loan payments.

Classified ads are online advertisements where companies offer their used cars and advertise them on sites. This type of transaction is beneficial for the seller because they can set their own prices. The buyer is not bound to buy your car hence, takes longer to find the right one.

The best part about the part exchange is that it can be done very fast especially if you’re in desperate need to change your car. In terms of time, classified ads take much longer as you will upload the ad on different sites then wait for people to reach out to you, shortlist potential buyers, meet up with them and then make a final deal.

However, in part exchange the dealer has an upper hand usually doesn’t budge on the price for the car. In classified ads, you’re in total control of how much you want to sell your car. Through good searching, you can find a good buyer for your car.

As mentioned above, both have their pros and cons but it just depends on which pros you want and cons you’re ready to accept. Give more time to decide how you want to sell your car instead of rushing into it so that you dont lose the value of your car.

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