Selling
5 min read
There are three common ways to sell a car: trade it in at a dealer, sell it yourself, or sell it to a company that buys cars, like us. None is best for everyone. Each one trades price against time and effort in a different way. Here is how they compare, including where we are not the best choice.
At a glance
| Dealer trade-in | Private sale | A buyer like Auto Exit |
|---|---|---|---|
Price | Often below a private sale | Often the highest | Often below a private sale |
Time | Same visit as buying your next car | As long as it takes to find a buyer | Offer in about two minutes, sale at pickup |
Sales tax | Can lower the tax on your next car in some states | No effect | No effect |
Effort | Low, but tied to buying a car | High: listing, calls, test drives, paperwork | Low: questions, photos, pickup |
Loan payoff | Dealer pays it off | You arrange it with the buyer and lender | Buyer pays the lender directly |
Leases | Same-brand dealers can buy most leases | Hard: you usually buy the car out first | Depends on the leasing company |
Dealer trade-in
Where it wins
One visit. You hand over the old car and drive away in the new one.
Sales tax, in some states. Texas lets the buyer deduct the value of the traded vehicle from the selling price of the new one, as long as the trade is part of the same sale. That can be worth a lot on an expensive car. Not every state does this. In California, the trade-in allowance can’t be deducted.
Leases. Some leasing companies let only the lessee or a dealer of their own brand buy a leased car. Honda, Acura and BMW work this way, so a same-brand dealer may be the only buyer who can take the lease directly.
Where it falls short
A blurred price. The trade-in is folded into a bigger deal, which makes it harder to see what you were really paid for the old car.
Negative equity can follow you. The FTC warns that some dealers say you won’t be responsible for the rest of your old loan, then roll it into the new loan, so you still pay it.
Private sale
Where it wins
Price. Selling it yourself often brings the most money. The FTC notes you might get more for your car than what a dealer says it’s worth.
Where it falls short
Time and effort. Photos, a listing, messages, test drives and no-shows, all on your schedule.
Strangers and payment risk. A common scam is a check for more than the price, with a request to send the difference back. Banks have to make deposited funds available quickly, so money showing in your account doesn’t mean the check is good. If it bounces, you repay the bank.
Paperwork. You handle the title, the bill of sale and your state’s notice of sale. In California, that notice is due within 5 days of the sale.
Loans. If you owe money on the car, the buyer can’t get a clean title until your lender is paid and releases the lien. Many private buyers would rather avoid that step.
Selling to a company that buys cars
Where it wins
Speed and a number you can act on. You get an offer without listing the car.
No strangers and no test drives.
Loan payoff and paperwork handled by the buyer.
Where it falls short
Price. A company that buys cars resells them, so its offer has to leave room for reconditioning, transport and its margin. That usually puts it below what a patient private seller could get.
Offers can change. Read the terms on how long the offer is held and what can change it after inspection.
Leases. Some leasing companies don’t let outside buyers pay off a lease, so you may need to buy the car out first.
Six questions to ask any buyer
How long is the offer held?
What can change it after inspection, and will any change be itemized?
When and how am I paid, and is it before the car leaves?
Who pays off my loan, and how will I know it’s done?
Are there fees for pickup, paperwork or anything else?
If the price changes at pickup, can I walk away without a charge?
Where Auto Exit stands
Here are our answers to those six questions:
Your offer arrives in about two minutes and is held for 7 days.
Once your photos are approved, the offer changes only for things you didn’t disclose, itemized.
You’re paid at pickup by bank transfer, before the car leaves.
We pay your lender directly.
There are $0 fees, and pickup is anywhere in the US.
If the price changes for something you didn’t disclose, you can walk away free.
Which one should you choose?
You want the most money and have time: sell it privately.
You are buying another car in a state with a trade-in tax deduction, or your lease can only go to a same-brand dealer: trade it in.
You want a price today, no strangers and the paperwork handled: sell to a buyer like us.
The cheapest way to decide is to get more than one number. Get our offer, ask a dealer for a trade-in figure, and look at what similar cars are listed for privately. Then pick the trade-off that suits you.
