Can You Trade In A Car That Is Not Registered

You may have heard that selling your car, truck, or SUV yourself might result in more money in your pocket than from trading it into a dealer. That might appear to be the case when you look at it on only a transactional basis and don't consider the additional cost and hassle of selling your vehicle to a private party.

There are a lot more time-consuming steps you'll have to take to sell your car yourself than you may realize. The money you earn from your sale might not even offset the extra costs of doing business with a private party.

Here are 7 reasons why it pays to trade your vehicle in to a dealership, rather than selling it yourself.

1. Get a tax break with your trade-in.

There's a tax advantage to trading in your existing car, rather than selling it yourself and then applying the cash as your down payment. In Washington state, tax laws allow the value of your trade-in to be deducted from the total purchase price.

Here's how it could look:

If you own a car worth $5,000 and you sell it in a private party transition and then use the $5,000 as a cash down payment toward a $10,000 car or truck, your tax liability will be around $1,000 .

If you trade your $5000 car in on that $10,000 car or truck, you reduce the taxes by the value of your vehicle. In this case, your tax liability would be $500 .

Of course, this goes up when you're dealing with higher price vehicles – so trading in a $10,000 car against a $20,000 car will save you $1,000. A $15,000 car or truck against a $30,000 vehicle purchase will save you $1,500. This is all on top of the trade-in value.

2. Save on detailing and reconditioning costs.

To get the most out of a private transaction you'll need to have your vehicle detailed. People buying cars privately will expect them to look fresh and clean, like vehicles they see on a dealer lot. That can cost you hundreds of dollars.

When you trade in your vehicle, the dealer is already expecting to detail and recondition the car before it goes on the lot – and that's included in your trade-in value. Trading in your vehicle to purchase a newer model can avoid you paying reconditioning costs upfront, allowing you to make a larger down payment.

3. Let the dealership handle the advertising for you.

When selling your vehicle privately, you'll need to invest in advertising. Even free advertising avenues like Facebook Marketplace or Craigslist involve the time spent crafting the perfect pitch and taking quality photos. You'll find many who respond won't turn out to be purchasers ready to come and see the vehicle. Some will make appointments and never show. That's all wasted time on your part.

Avoid the extra time and stress trying to find the right buyer for your vehicle by trading it in, and let the dealership advertise it.

4. Avoid the wait time to purchase a different vehicle.

When trading in your vehicle, you receive the value of your vehicle immediately as part of the transaction. Many dealerships move inventory very quickly – so If you see something you like, you'll need to move on it fast.

But If you're determined to sell your vehicle through a private party sale, be ready to wait. It can take up to four to six weeks to sell through a private party sale. If you see the new vehicle of your dreams on the lot, you can't afford to wait that long to sell your vehicle for the down payment.

5. No need to pay off your existing loan in full.

If you still have outstanding payments left on your loan, this will discourage prospective buyers as well. If you still owe on your loan, you won't have the title in hand. The lender holds onto the title as long as there are still payments due. For many buyers, it's a red flag, reducing the number of potential buyers which is likely to increase the time it takes to sell.

A dealer, on the other hand, has no problem with working with you to pay down your existing loan. At Legend Auto Sales, we'll work with you no matter what your current credit situation is – and we have years of experience working with buyers at all stages of their loan repayment.

6. You'll get a fair price, no matter what time of year it is.

Timing is important when selling privately. You'll always get the best price on your vehicle at peak season. On the other hand, the price you'll be offered by a dealer is set by industry pricing that doesn't fluctuate by time of year.

Selling your vehicle yourself during a high-demand time of year will result in many other vehicles similar to yours on the market at the same time. If your car doesn't stand out, it's less likely to get many interested buyers. But selling your car when there's less competition means there are fewer buyers as well. You'll probably have to accept less for your vehicle in the offseason. Timing the market is important to get the top value for your car, but it's not always easy to predict market trends.

Trading into a dealership means you'll receive a fair price no matter the season – and more money in your pocket.

7. Your transaction is safer at a trustworthy dealership.

If you are still determined to sell your car, truck, or SUV on your own, you have to deal with strangers coming to your house. This is something you may or may not be comfortable with. You could also meet them in a neutral, safe place like the parking lot of a bank or store, but then you're away from the safety of your home.

At a trustworthy dealership, you won't need to worry about your personal safety. How do you know a dealer is trustworthy? You can read what previous customers had to say about them on review sites like Google, Facebook, or Yelp.

A private sale transaction also leaves you at risk of getting ripped off. There are a number of ways that bad guys can take your car from you without paying for it. Counterfeit bills have been used in car payments, while checks have been forged (even cashier's checks). Your vehicle can also be stolen through a wire transfer or PayPal transaction simply by them canceling the payment once they have your vehicle in their hands.

In a private party sale there's always the risk that if you sell a vehicle that breaks down soon after the transaction, you could be dealing with some big headaches. Although they may not have a strong case, that doesn't stop some frustrated buyers from taking legal action.

When trading your car, truck, or SUV into a dealership you'll never have these concerns. Separating a vehicle from its owner in an illegal fashion would be highly detrimental to the dealer's business. Dealers are licensed by the state and are required to have a permanent facility and be bonded.

Legend Auto Sales is a proud member of the WSADA (Washington State Auto Dealers Association), we have an A+ Rating from the Better Business Bureau, and we strive to maintain the highest standards of conduct.

So what now?

If you've read down to this point you'll have realized that there's much more involved in selling a car through a private party sale than you might have thought. You'll also have learned that trading in your vehicle to a dealer is a far more advantageous option.

Legend Auto Sales wants to work with you to trade in your vehicle, and put you in the right car, truck, or SUV that best meets your needs. We pay top dollar for trade-ins, and will offer 110% of your vehicle's Kelley Blue Book (KBB) value!

Just complete our trade-in form to learn what your current ride is worth as a trade-in at Legend Auto Sales.

Are you still looking for the right vehicle? We have a wide range of used sedans, coupes, pickups, and SUVs in all price ranges from which you can choose. Just take a look at our extensive inventory of pre-owned used vehicles.

Need more information or help in selecting your next vehicle? Reach out to us at any time, and one of our sales team will be in touch with you.

See you (and your trade-in) soon!

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