To Trade(-in) or Not to Trade

Let’s say you decide to upgrade your 2004 Honda Accord or any brand. You, being a knowledgeable shopper, gather brochures, get prices, determine manufacturer’s programs for leasing, financing and cash rebates and then narrow down the possibilities by test driving. When it comes to your trade-in, rumor has it that you will always get a higher price by selling it yourself. So, let’s examine the difference.
Your Accord has average kilometers on it and is in fairly good condition bodywise (windshield unmarked, no accident history, tires, exhaust and brakes will pass a safety).
You check the internet Auto Trader and find that 04 Accords with similar features, kilometers and engine size are retailing for between $15,000.00 and 16,500.00. After the dealership checks out your trade they offer you $13,800.00 against the price of the new car.
Do you take it or sell it privately yourself?
If you decide to sell it yourself, and advertise the price at $16,500.00, if you get a buyer that offers you $16,000.00 cash, you would probably take it (we all leave a little wiggle room in the price).The safety check, clean-up, placing an ad ($40/week-2 weeks), and purchasing a sellers pkg from the MTO (your responsibility) may have a dollar value of $380.00 (usually it will need something for the safety).
Sitting at home waiting, taking people for test drives, taking a deposit, and doing the paperwork does not have a dollar value but your time is worth something.
Once everything washes out you have $15,620.00 in your pocket which you use as a downpayment (this is deducted after the total price).
If you took the trade-in price of $13,800.00 it will come off before taxes, which means that after taxes (13% Ontario) it’s value equals a total of $15,594.00.
This is where we get back to the dollar value of your time, as you saved yourself $26.00 by selling it yourself.
To some, that is worthwhile-you decide.