SELLING GUIDE · SOUTH AFRICA
Trade-in, private sale or dealer: what is your car really worth?
Ask “what’s my car worth?” and there are really three answers, often far apart. Knowing which one you’re being quoted is the difference between a fair deal and leaving money on the table.
The three prices
- Dealer retail
What a dealer advertises the car for. The highest number, because it includes reconditioning, a warranty or guarantee, finance on the spot and the dealer’s margin.
- Private sale
What another person pays you directly. Usually below dealer retail and above trade-in. You do the selling: the ad, the viewings, the paperwork and checking that the payment has really cleared.
- Trade-in or instant offer
What a dealer or car-buying company pays you on the spot. The lowest number, but the fastest and simplest. The gap is the price of convenience.
Which one are you being quoted?
Asking prices online are mostly dealer-retail and private-sale prices, so a trade-in offer below them is normal. The real question is how far below, and whether the convenience is worth that to you.
How to decide
- Want it done today? Trade in or take an instant offer, but know the retail number first so you can negotiate.
- Can you wait a few weeks? A private sale usually gets more. Price the car at the middle of what the same version and year are advertised for, and have the service history ready.
- Selling a car that still has finance? The settlement has to be paid to the bank before ownership can change, so get the settlement figure first.