Originally Posted by aypanthony
You should try and sell it privately. Both you and the potential buyer will get a better deal than what you would get through a dealer. Both sides win. Besides, with the cash you have from the sale, you will have a lot more bargaining power with your 2014 purchase.
It sounds good... but rarely the case. And when you add the hassle-factor of a private sale, it turns against you in a hurry. It works best for vehicles at the lower end of the price point, but even then it's not the greatest.
Indiana has a sales tax of 7%. So right off the bat, you have to sell your vehicle privately for at least 7% more than the trade offer just to BREAK EVEN. If you're lucky and find a cash buyer willing to give you full price for your vehicle, by the time to calculate the actual profits, it's not more than a couple of hundred dollars on the average $20K vehicle. Factor in the time involved placing ads, answering phone calls, getting your title, filling out the bill of sale...etc. and waiting for days/weeks or more. It just gets to thin for the effort involved. Oh, and after the sale maybe you don't have a means of transportation until your next purchase...
And then!... and this is very true, the smokin' deal that the dealer had on the vehicle you wanted vanished overnight, which again will eat up the profits.
Like many things, everybody has an opinion but when I'm in the notion of getting a new car... I want it NOW. And when I find the deal I'm looking for, I make it right then. Delays will usually cost me.