Sell privately or Trade-In?

[MadmansVoid]

I've ordered a '22 Telluride. I've been told it's 6-8 months out. Should I privately sell my '16 Sorento or trade it in on the Telluride when the time comes?

 

[hoppyjr]

I've ordered a '22 Telluride. I've been told it's 6-8 months out. Should I privately sell my '16 Sorento or trade it in on the Telluride when the time comes?

Depends.

If you are in a state that allows a sales tax credit for the amount of trade in, then that is a factor. I know a California does not have this.

Do you need the Sorento as a daily driver until the Telluride arrives? If so, you’ll need to consider value offered at trade in time versus what you could get privately.

If you don’t need the Sorento as a daily driver for the next 6-8 months - and if there is no sales tax credit for trading it in - then selling is a viable option now. With the used car market as crazy as it is today, you’ll surely get more for the Sorento that you normally would.

 

[MadmansVoid]

Thanks, hoppyjr. If I understand what I'm finding on Indiana sales tax credit for trade-ins, I believe there is no sales tax credit for trading in the Sorento here, but I'm not sure if I understand it. I do need the Sorento as a 'daily driver,' but I really don't put many miles on it. I'm just not sure if the hassle of selling the Sorento privately is worth whatever I might get above a trade-in value.

Another factor is that the Sorento has its engine replaced, by Kia, when it was around 40,000 miles. The odometer is now approaching 60,000 miles. I wonder if there should be some extra value there since the engine only has about 20,000 miles on it. Thoughts?

 

[hoppyjr]

Thanks, hoppyjr. If I understand what I'm finding on Indiana sales tax credit for trade-ins, I believe there is no sales tax credit for trading in the Sorento here, but I'm not sure if I understand it. I do need the Sorento as a 'daily driver,' but I really don't put many miles on it. I'm just not sure if the hassle of selling the Sorento privately is worth whatever I might get above a trade-in value.

Another factor is that the Sorento has its engine replaced, by Kia, when it was around 40,000 miles. The odometer is now approaching 60,000 miles. I wonder if there should be some extra value there since the engine only has about 20,000 miles on it. Thoughts?

Likely any “perceived value” in the newer engine is offset (in the mind of perspective private buyers) by the fact that it had to be replaced in the first place.

I don’t see it dropping in value appreciably in the next few months, so I’d say hang tight - especially since you need the vehicle. When you hear from your dealer that the Telluride is a couple weeks out, shop your vehicle and compare sale prices to ensure your dealer is giving a decent trade price.

That’s what I’d do.

 

[eeldude]

I've ordered a '22 Telluride. I've been told it's 6-8 months out. Should I privately sell my '16 Sorento or trade it in on the Telluride when the time comes?

Privately selling can be a pain. If you are willing to forego a bit of value, once you get a solid delivery date on your Telly, I would recommend shopping the Sorento to a few online buyers that service your area. The process is quick and painless. With the best online offer in hand, you can then see if the dealer will offer more.
Given the used car market, your late model Sorento should get good money.

I recently sold my Odyssey and got offers from Carvana, Vroom, and CarMax. Vroom offered the most so I took their deal. I accepted their offer on Jan 15, sent images of my ID, Title, Bank EFT info and photo of the odometer. They sent a Fed Ex label for me to send the Title. They received it on Jan 19 and gave me some dates for pick up and their truck arrived on time Jan 22 to pick it up. Money was direct deposited on 1/25.

 

[MadmansVoid]

Privately selling can be a pain. If you are willing to forego a bit of value, once you get a solid delivery date on your Telly, I would recommend shopping the Sorento to a few online buyers that service your area. The process is quick and painless. With the best online offer in hand, you can then see if the dealer will offer more.
Given the used car market, your late model Sorento should get good money.

I recently sold my Odyssey and got offers from Carvana, Vroom, and CarMax. Vroom offered the most so I took their deal. I accepted their offer on Jan 15, sent images of my ID, Title, Bank EFT info and photo of the odometer. They sent a Fed Ex label for me to send the Title. They received it on Jan 19 and gave me some dates for pick up and their truck arrived on time Jan 22 to pick it up. Money was direct deposited on 1/25.

Thanks, eeldude. That sounds like a solid alternative. I'll most likely follow your advice. I really don't want the hassle of privately selling it myself.

 

[Dznyfan4778]

I sold my 2020 Telluride to CarGurus in December 2021. I got more than I paid for it in 2019. Tax benefit or not, getting full price for a 2 year old vehicle with 36k miles was great. Not going to see this kind of market in the future once supply lines start to normalize.

 

[dhznga]

I've traded in many times in Indiana, your sales tax is absolutely reduced by the trade-in amount so make sure you add that benefit on top of any private sale since will pay full sales tax on the new car with not trade-on.