A new study from Auto Express can help drivers decide the most profitable way to sell their cars, and it may surprise you.
Using UK Vehicle Data for the latest sale valuation estimates, the study reveals whether sellers should opt for a private sale or a part exchange.
The research has revealed that private sales, which are traditionally seen as more cost-effective, do boast higher returns. Based on a sample of 1,000 car registrations from Carwow, sellers can expect to make £407 more on average by selling privately compared to part-exchange. This represents an average 4% boost on the selling price.
Private sales can also return bigger profits as mileage increases, the study shows. Sellers of cars with 5,000 to 10,000 miles on the clock can expect just a two per cent gain when selling privately over part-exchange. But, for vehicles approaching 50,000 miles, that difference can grow to six per cent, before tapering off to 4% for cars over 100,000 miles.
Despite this, trading in with a dealer can deliver a better price for some high-demand vehicles. Popular models such as the Nissan Micra, Ford Fiesta, Vauxhall Astra, and Mercedes C180, among others, can fetch up to 10% more via part exchange, showing that the most profitable option may depend on the type of car.
Paul Barker, Editor of Auto Express, said, “If you’re looking to sell, consider the type of car you own and its mileage to help you decide on the best sale method. Though private sales typically offer a better return, some popular models can sell at a higher price through part-exchange, likely due to the strong market demand and dealers’ ability to quickly resell them.
“The financial benefits of a private sale can also come at the cost of speed and convenience, requiring extra time and effort to make a sale, as well as frustrations for the seller when dealing with difficult buyers.
“Mileage is also a key factor, as dealers tend to offer better part-exchange prices for low-mileage cars, which are easier to flip. Part-exchange or selling to dealers via online auctions also offers a hassle-free experience, allowing sellers to avoid time-consuming tasks like advertising, answering inquiries, and dealing with potential buyers.”
Recent research by Auto Express found that more than a third (37%) of private sellers have faced an issue during the process, including haggling, time wasters and disputes over vehicle condition.
