Edmunds: Trade or sell your car? What's best might surprise you

abcnews.go.com:

With used car prices dropping, it’s crucial to know the best way to maximize your return when you part ways with your current car

According to a recent Edmunds used vehicle report, demand for used cars is dropping and so are their values as the new-car market rebounds from pandemic-induced shortages. This is especially true for 1- and 2-year-old vehicles. So there’s never been a more critical time to know whether it’s better to sell your car privately or trade it in.

Both options have their advantages and drawbacks, and the best decision largely depends on your circumstances, priorities and preferences. Edmunds’ experts run down what you need to know to make an informed decision.

Selling your vehicle privately will likely yield a higher sales price than trading in at a dealership. By doing so, you’re essentially cutting out the middleman. But you’ll likely pay for that profit in the time and energy you spend marketing your car, negotiating a sale, and managing the transaction itself. Whether a private sale is worth it comes down to time — how much you have and how you want to spend it.

When selling your vehicle, expect to create and maintain ads; respond to inquiries; schedule time for potential buyers to view and drive your vehicle; and negotiate over the final sale price. It may take weeks or months. And you’ll need to be sure you know what paperwork your state requires to legally carry out the transaction.

But there are benefits to selling privately. Besides the likelihood of getting more money for your vehicle, you also get final say on who you sell your vehicle to. If you have a strong attachment to your vehicle, you can screen the potential buyers to make sure it’s going to someone who’s going to treat it