Selling a vehicle privately typically yields higher net proceeds than trading it in to a dealer, because private buyers will often pay closer to retail value while dealers need room to resell at a profit. However, private sales require more effort: creating a listing, handling inquiries, showing the car, arranging test drives, and managing the paperwork of transferring title and payment. Private sales also expose you to time risk — it may take days or weeks to find a buyer, and you may need to negotiate. If you value speed, convenience, and minimal hassle, a trade-in may be attractive even at a lower net price; dealerships handle paperwork and may apply the trade-in value directly to your new purchase, which can also reduce sales tax in some jurisdictions.

When preparing to sell privately, document maintenance records, clean and photograph the vehicle, set a fair asking price by researching comparable listings, and be mindful of safe meeting practices when showing the car. Factor in transaction costs and time value: sometimes the convenience premium of a trade-in is worth a few hundred dollars to someone who needs quick vehicle replacement or doesn’t want to manage the sale. Also check local rules for sales tax treatment with trade-ins — in certain areas the trade-in reduces taxable purchase price, providing an indirect benefit to trading in.