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The decision to sell or to trade-in is a common speed bump amongst Malaysians looking to transact their car. To help you get the best returns, we'll take a look at the pros and cons of these two options.
There isn’t a one-size-fits-all solution when it comes to selling cars as the process involves a multitude of variables and circumstances.
Only by looking at the pros and cons when it comes to transacting your car will you be able to better understand which option would suit you best. We'll discuss what exactly you should be taking into consideration when making this decision.
Advantages of Trading-In
Paperwork is a chore and the entire selling process is an arduous and time-consuming task which would normally include entertaining test drives from potential buyers, fixing the car's minor defects and advertising the car, to name a few.
Trading in your vehicle would help alleviate your pains and save you from the hassle of these time-consuming processes.
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As mentioned, trade-ins would involve only one dealership in the transaction. If all goes well, you can drive home with a newer, better car than the one you were with and avoid worrying about time periods deprived of a car. This is especially beneficial for those of you reliant on a car for travel or those with families to consider.
Trade-ins do, however, come with a series of drawbacks.
Disadvantages of Trade-in Deals
The convenience of trade-ins comes at the price of high dealer fees. It is to be expected of course, as this is their main revenue stream.
These fees can include invoice fees, PUSPAKOM inspection fees and processing fees. Another point of worry is that these costs are initially hidden from you, only revealed as hidden fees later on in the process after a lot of time and energy has been invested in the deal.
Having to transact with one dealership is also a double-edged sword. The speed and immediacy it brings come with the risk that your choice of a new car might not be available at that particular dealership.
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Different car dealers may offer you different valuations and they all have varying catalogues of cars to choose from.
This gives rise to the unfortunate situation of having to decide between getting the best price for your old vehicle and the availability of the car you are hoping to buy.
For example, Dealership X might have better trade-in valuations than Dealership Y but that Proton X50 you've been eyeing might not be available at Dealership X, resulting in even more difficult decisions.
Alternatively, you can opt to sell your car directly to a buyer without going through a dealer. This process is known as direct selling.
Advantages of Direct Selling
One of its advantages would be the greater degree of control you would have with regard to its selling price.
The absence of dealer fees in this process allows for a higher ceiling when negotiating prices, increasing the likelihood of getting the valuation that you’re looking for.
Direct selling will also give you control over the time of sale, letting you deal in accordance with your needs. You can accept an offer now if you need the cash quickly, or wait to receive more offers if you're trying to get the best price instead.
Disadvantages of Direct Selling
Selling your car without a dealer would require quite a bit of effort as you will have to source for potential buyers on your own. Sure, with the internet you can get your intent of sale around, but without a proper network of connections, it will still take some time before offers start to trickle in.
You will also have to learn how to fill out the necessary paperwork to sell your car such as transfer of ownership forms and send the car for inspections to get the required JPJ inspection certificate.
Negotiation is also key in getting the best value out of your car if you're selling directly to a buyer. If you are unable to negotiate, it will lead to lower returns for your car.
As mentioned, how you choose to move on from your old car will largely depend on your needs and priorities.
Is the convenience of a trade-in deal enough of an incentive for you over the flexibility and higher valuations if you were to sell your car? It’s really up to you to decide as you know your own situation best.
That being said, there is an alternative that may give you the best of both worlds.
A Smarter Alternative?
Listing your car up for sale on third-party platforms is a smart option considering they are normally not attributed with the exorbitant fees dealerships charge. You will also be able to sell your car for the highest price possible and connect with interested buyers across Malaysia.
Motorist Malaysia greatly simplifies the processes and paperwork while connecting you to a vast audience of potential car buyers, mitigating the immense effort you would need to exhaust while flying solo.
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