Sell Your Car to a Dealer or Privately: Which Pays Off?

The most common question when you are about to sell a car is simple to ask but hard to answer: should you sell to a car dealer or privately? The short version is that a private sale usually puts a couple of thousand kronor more in your wallet, while selling to a dealer is faster, safer and almost entirely hassle-free. Which one pays off depends on the car's value, how much of a hurry you are in and how much time and risk you are willing to take on.

Selling privately: higher price, more work

When you sell privately you advertise the car yourself, take the calls, show the car and negotiate directly with the buyer. The advantage is the price: you avoid the dealer's margin and get the full market value. On a normal used car the difference compared with a trade-in price can be anything from a few thousand to well over ten thousand kronor.

But that price costs you time. Expect to spend time writing a good ad, photographing the car, answering questions from prospects who often never show up, and booking viewings. You are also responsible for the buyer paying in a safe way and for the change of ownership being done correctly.

Risks to know about with a private sale

• Payment fraud: fake Swish receipts and "bank transfers on the way" are common. Always wait until the money is in your account.
• Hidden faults: as a private seller you can be held liable if the car has faults you did not disclose. Be honest in the ad and keep written documentation.
• Test drives: make sure the buyer has a valid driving licence and that your insurance applies, or go along for the ride.
• The time it takes: a car that is hard to sell can stay listed for weeks or months.

Selling to a dealer: fast and safe

If you sell to a car dealer you usually get paid the same day, the dealer handles the change of ownership and you avoid any aftermath of complaints. The downside is that a single dealer builds in their own margin, which historically has meant a trade-in price lower than what you could have got privately.

This is exactly where bidding between several dealers changes the picture. When you only talk to one dealer, you never know whether the offer is good. When several connected dealers place competing bids on the same car, the price is pushed up: you get the security of a dealer sale with something closer to the price the private market would have given.

How to choose the right route for your car

• Plenty of time and a sought-after car? A private sale will probably give you the most.
• Want to sell fast, avoid the hassle, or have a car with a loan or faults? A dealer is usually best.
• Unsure what the car is worth? Request bids from several dealers first. It is free and gives you a floor to compare a private ad against.

A smart approach many people use is to start by collecting bids from several dealers. The bids cost nothing and do not commit you to anything. With a concrete price in hand you can then decide whether it is worth the effort to advertise privately, or whether the best bid is already good enough.

Frequently asked questions