Why Trading In Your Car Can Save You Money (Even If You Could Sell It for More)
"Don’t let this deal drive away—unless you’re behind the wheel!"
- Chase | Car deal dad joke writer | Not very good at it...
Why Trading In Your Car Can Save You Money (Even If You Could Sell It for More)
Welcome Deal Guard Nation!
Today we’re answering a question almost every car buyer asks:
"Should I trade in my car to the dealership—or sell it myself for more cash?"
And what about those instant-buy places like CarMax, Carvana, or Vroom? Are they better?
It’s a fair question. Because yes, selling your car privately or to an instant-buyer platform can get you a higher price... BUT that’s not the whole story.
We’re breaking down the pros and cons of traditional trade-ins, CarMax-type offers, and private sales—with real industry data and smart strategies that help you get the most money with the least stress.
Tactic #35: Trading In Could Be Smarter Than You Think
The Big Reason Trade-Ins Save You Money: Tax Credits
In many states, when you trade in your car at a dealership, the value of your trade is deducted from the amount you pay sales tax on.
Example:
New car price: $30,000
Trade-in value: $10,000
Taxable amount: $20,000
At 7% tax, you save: $700
So even if a private buyer or CarMax offers $1,000 more, it might not be a better deal after taxes and hassle.
According to Edmunds, the average private sale brings in $1,000–$1,500 more than a trade-in—but trade-in tax credits and convenience often balance that out. I totally agree!
3 Ways to Sell Your Car: Pros and Cons
✅ Option 1: Trading In to a Dealership
Pros:
Instant credit toward your next purchase if you have equity
May qualify for sales tax credit
Simple transaction (especially if you still owe money)
No strangers, no showings, no back-and-forth, no creepy business
Cons:
Often the lowest offer (dealers want profit room)
Dealers may lowball unless you negotiate - Use Deal Guard and avoid the discomfort
✅ Option 2: Instant Cash Offers (CarMax, Carvana, etc.)
Pros:
Fast quotes online or in person
Usually higher than a dealer trade-in
No need to buy a car—just sell
Straightforward process
Cons:
No tax savings unless you apply the offer as a trade (depends on your state & dealer policy)
You may get a low offer if the car isn’t in great condition
Doesn’t always beat private sale prices
Hot tip: Some dealerships will match or beat your CarMax/Carvana offer if you show proof. Always ask and get proof in writing!
Never use KBB (Kelly Blue Book) instant offers. All they do is sell your info to dealers. RUNNNNNN!!!
✅ Option 3: Selling Privately
Pros:
Highest sale price (if you find the right buyer)
You control the process
Cons:
Time-consuming (ads, calls, tire kickers, lowballers, test drives)
No sales tax credit
You handle all the paperwork, title transfer, and potential loan payoff
Risk of scams or unreliable buyers
Step-by-Step: How to Maximize What You Get
1. Get Multiple Offers
Before you decide, collect quotes from:
Your dealership (trade-in value)
Instant-buy platforms (CarMax, Carvana, Vroom, etc.)
Private market (Facebook, Craigslist, Autotrader)
2. Know the Tax Rules in Your State
Not every state gives you a sales tax credit for trading in.
Check here: NADA Tax Credit Chart
If your state does? That tax savings can make a big difference.
3. Clean the Car and Gather Paperwork
Clean inside and out (basic wash + vacuum)
Find your title (or check your loan balance)
Bring service records if you have them
Deal Guard Concierge Tip: Deal Guard Shops Your Car for You
At Deal Guard, we:
Get trade-in and instant-buy quotes for you
Run the numbers (with tax savings factored in)
Help you compare your best options side-by-side
You pick the easiest, most profitable one—we handle the busy work.
What to Avoid:
Don’t take the first offer without checking others
Don’t forget to ask if a dealer will match a CarMax-type quote
Don’t forget the tax impact—it could swing the deal
Recap: Trade vs. Instant Offer vs. Private Sale
Check trade-in, CarMax-style, and private sale values
Know if your state gives you a trade-in tax credit
Clean the car and gather your documents
Use multiple quotes to negotiate the best deal
Let Deal Guard help you sort it all out
Next week we’re rolling out the First-Time Car Buyer Survival Guide—what no one tells you before your first car deal.
—
Want top dollar without wasting time?
Deal Guard compares dealer trade, CarMax offers, and private sale math—so you don’t leave money on the table.
Go to GETDEALGUARD.COM TO LEARN MORE
Let us deal with them for you.
Our car buying concierge service confirms every detail and protects your time, money, and sanity.
Our concierge car buying service saves you hours of stress and thousands in bad deals. Your time is valuable—let’s protect it together.
Go to GETDEALGUARD.COM TO LEARN MORE
See you soon,
Chase Jordan
#cardealconcierge #dealguard #cartradeinvalue #carmaxvsdealer #howtosellyourcar #week35
