Is it better to sell your car privately or through a dealership?

When it comes time to trade in your vehicle for a new set of wheels—or if you are just looking to sell your car—you have a big decision to make: should I sell privately or through a dealership?

The answer depends on a number of variables that really come down to your comfort levels in selling your own vehicle, how involved you want to be in the selling process, how much money you're hoping to get from the vehicle and what your timeline is like.

It also depends on what type of car you own, what shape the vehicle is in, how in-demand or desirable the car is and if you still owe any money on the vehicle.

Private vs. Dealer

Both options have pros and cons that are worth considering. We've put together the following chart to give you some insight into the selling process so you can be better informed as to what is the right option for you.

	Pros	Cons
Selling privately	Can get a substantially higher value for your vehicle Have a say in who owns your vehicle after you Can take advantage of online listings services like autotrader to make things easier Gives you more time to explore your buying options, even taking the time to get quotes from a couple dealers Buyers will likely negotiate, though this could also be seen as a con	More labour intensive and hands on. You have to meet with potential buyers and handle the paperwork yourself Can be difficult and time consuming, especially if the vehicle isn't in the best condition Especially tricky if there is still money owing on your vehicle Takes time to make a solid and enticing listing Can be dangerous and risky, especially when selling online Can delay the purchasing of a new vehicle if it depends on selling the current one first
Selling through a dealership	Trade-in value can be applied to the value of a new vehicle, and the trade-in value is usually a bit higher when you are also purchasing a new vehicle Many dealerships will buy a vehicle that's in decent condition even if you're not purchasing a new one Options to sell to manufacturer dealerships or used car dealerships Easy and hands off – the dealer will help take care of everything Convenient	Trade-in value may be significantly less than what you could get selling it privately. Dealers always buy at less than they will sell it for Some dealerships are not interested in buying older vehicles at all Little room for price negotiation Probably won't get the value you're asking for

Before you sell:

Find out the value of your car using a service like Canadian Black Book
Read the Province's guide to selling a used vehicle to make sure you're covering your legal ground
If you are trading your car in, research the vehicle you're interested in purchasing thoroughly so you can be prepared when you take your old car to the dealership. Check out our tips for negotiating a good deal when purchasing a new car.
Run a few auto insurance quotes on the vehicles you're interested in purchasing to find out if there are any major insurance differences between the makes and models. A notable difference might make your selling decision easier.

There is no right or wrong method when it comes to selling a used vehicle, as there are pros and cons to both private selling and selling to a dealership. The right choice is the one that's right for you. Take the time to thoroughly consider your options and find out which variables are most important to you.