Toronto New Car

The car you currently own probably represents profit. The question is, whose profit will it be? With few exceptions, you’ll get the most money for your used car by selling it privately. That’s because dealers pay wholesale prices — not retail prices — for used cars.

They sell them at retail, and the difference between the two is the only reason they bother. A used car’s profit margin, though based on a lower selling price, is much greater than that of a new car. Don’t underestimate your car’s value to a dealer.

If you don’t want to make the effort or take the time, there’s an in-between option that might add considerable benefit for little more cost: shopping your car to used-car dealers.

For instance, if you have a Volkswagen Passat and you’re considering buying a Nissan Altima, try selling the Passat to a Volkswagen dealer yourself. In most cases, a used Volkswagen is worth more to a VW dealer than a Nissan dealer.

Whether you’re working with one dealer or two, remember that combining the trade-in and new-car purchase is what you’re trying to avoid. Aside from potentially earning you a higher price, this approach simplifies the complicated new-car-buying process. Simply put, keep the trade-in aspect separate from the negotiation for purchase price.

Whoever you’re selling it to, determine your car’s value with our Kelley Blue Book listings. KBB will give you the trade-in and retail values for a range of vehicle conditions. You should also wash and detail the car and remove all personal items. A clean car makes a better impression, even on a professional car dealer.