The perks of selling your car to a dealership vs. privately

Amy Bairstow
Amy Bairstow
The perks of selling your car to a dealership vs. privately

What’s the best place to sell a car these days? You can choose to either sell privately, or sell or trade in your car with a dealership.

The two choices can involve pretty different experiences and expectations. But there are a few perks that selling to a dealership can offer that don’t always go hand-in-hand with a private sale – perks like speed, peace of mind and convenience.

Here are the biggest advantages of dealing with a dealer rather than going it alone.

Perk #1: It’s hassle-free

This is perhaps the biggest benefit of selling or trading in your car with a dealer: it’s easy! You won’t need to write your own vehicle description or take photos. You won’t need to field messages from potential buyers only to be ghosted. And you won’t need to invite a mysterious stranger into your front yard only for them to kick the tyres and umm and ahh.

When you sell to a dealership, the paperwork is largely handled for you. And if you’re trading in, you can handle both the purchase and sale all in one transaction. Car finance can be easier to navigate, and the handover can be as simple as driving in with your old car and driving out in your new one.

All of this simplicity means that you’re also saving something precious: your time.

Perk #2: It’s fast

If you need to sell your car by a certain date or you just hate wasting time, then choosing a dealership is a great option over selling privately. Why? Because after a week of dealing with no-shows, could-be scammers and lowball offers on the private market, you start to realise just how precious your time actually is.

Here’s how it can go instead. To get an obligation-free valuation with Carma, you simply add your car rego and state and follow the steps from there. Carma can even pick up the car from your place once you’re ready to sell. That frees up your weekends for more important things, like naps.

Perk #3: It’s reliable

Safety and peace of mind are natural considerations when you’re selling your car.

It can feel a bit stressful to meet a complete stranger and negotiate a price in real time that you won’t later regret. And let’s face it – there’s only so much Facebook research you can do on someone to ensure you won’t end up the victim on a true crime podcast. We jest, of course, but as Carma’s Director of Buying Peter Willis says, “Many people feel vulnerable with a driveway transaction often into the tens of thousands. Which, unless you are familiar with it, can be daunting – as is inviting complete strangers to your property to do the transaction.”

Let’s compare this to the experience with a car dealership. You can easily check their credentials and customer reviews before you sell to them. You can see whether the dealer is registered with Fair Trading as they should be, and you can use secure payment methods to receive your funds. It’s still important to choose the right dealership, of course, but it’s a whole lot easier to do that due diligence beforehand.

Finally, to price. Of course, there’s the assumption with a trade-in that you’re foregoing a potentially higher profit for that quick and hassle-free experience. But you might also be surprised by how reasonable a dealership’s valuation can be.

Perk #4: You’re dealing with fair market valuations

We asked Carma’s car market specialist Peter about the price difference between dealerships and private sales. Peter explained that in reality, what people perceive as the market price doesn’t always reflect the final sale price.

“With the negotiation and urgency changing often the ability for a seller to hold out for their asking price can waver, especially when selling privately. Sellers will often end up accepting much less to satisfy a happy transaction and meet the buyer’s conditions, whether that’s availability or payment methods or timings.”

So in other words – you can sometimes be better off with a fair valuation from a dealership than risking a haggle on the private market.

Car dealerships buy and sell cars regularly and will often have a good idea of a fair price for your car’s make, model, age and condition. In particular, the Carma team believes in offering the best price first to minimise the need for haggling (though there is room for discussion if the details are different to the original valuation). Essentially though, the valuation team will be comparing current market data and previous sales of similar makes and models while considering the car’s mechanical, interior, and exterior condition and service history. Dealerships can also be flexible with a car’s trade-in value if you’re planning to buy a car with them too.

Tips for optimising price when selling or trading in

So - is there anything you can do to improve your sale price? According to Peter, “Presenting the car in its best light is important, without breaking the bank. A simple wash and detail is often enough.” Peter also recommends compiling all documents to show all the maintenance that’s been done, as well as highlighting any major repairs you’ve had done that might be commonly required for that vehicle’s make and model.

What about fixing up minor scratches or dents? Peter says this depends on the repairs. “Having your car in good condition is important, but low quality quick fixes often have a negative effect. Say, painting a bumper is fine if you have the skills and tools, but a quick and rushed backyard touch-up can often be more difficult and expensive to restore to high quality.”

When it comes to investing in your car before its sale, it might be better to focus on mechanical issues instead. According to Pete, “Correcting any negative mechanical repairs is one way of maximising sales value, as an engine light will most often be a sign of expensive issues and will be penalised as the most costly repair when selling or trading.”

Remember: selling is an option you can simply consider

You don’t need to commit to selling your car to get a valuation for your vehicle. Whether you’re looking to sell your car now or you’re simply curious about what kind of trade-in price you could get, you can head to Carma’s sell or trade-in page to get a fair and accurate offer. The great thing about Carma is that you can either sell, buy, or both to suit your needs, and you don’t need to trade in unless you also want to buy a pre-owned car you love.

Wherever and however you choose to sell, just remember: it’s your choice, it’s your asset, and it’s your opportunity for a great outcome.

Want to know how selling with Carma works?