When it's time to sell your car, you have two main options: sell it privately or trade it in at a dealership. The difference in outcome can be thousands of dollars — here's how to decide which is right for you.
The Trade-In
Trading in is fast and convenient. You drive in with your car, the dealer assesses it, and you walk out with the value applied to your next purchase. But convenience has a price.
A dealer buying your car as a trade-in is looking to resell it at a profit. They'll typically offer you 10–20% below what they'd sell it for — and often 20–30% below what a private buyer would pay.
That said, trade-ins have a genuine advantage: in most Australian states, you only pay stamp duty on the difference between the price of your new car and your trade-in value. On a $40,000 car with a $20,000 trade-in, you're only paying stamp duty on $20,000. That's a real saving that narrows the gap.
The Private Sale
Selling privately typically nets you 15–25% more than a trade-in offer. On a $20,000 car, that's an extra $3,000–$5,000 in your pocket. But it takes time — typically 2–6 weeks — and comes with costs: photography, listing fees, time spent fielding inquiries, test drives with strangers, and the risk of time-wasters.
The Hybrid Approach
Get a trade-in offer first. Then list privately with a reserve at or just above the trade-in price. If you get a better offer privately, great — take it. If not, fall back to the trade-in. You lose nothing by knowing your floor.
When to Trade In
- The car has high kilometres or mechanical issues a private buyer would discount heavily.
- You're buying a new car and the stamp duty saving is significant.
- Time is more valuable to you than money right now.
When to Sell Privately
- The car is in excellent condition and will photograph well.
- You have time to manage inquiries and test drives.
- You're not buying simultaneously and won't benefit from the stamp duty offset.
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