Upgrading? Get a real offer before you sign the trade-in.

If you’re buying a new car, you don’t have to trade your old one in. You can sell it separately and put the money towards the new one. Get a real offer for your car on its own before you sign the new-car contract. Once the contract lists your car as a trade-in, changing course gets harder.

Here’s what changes when you sell separately, how to time the sale around your delivery date, and how finance and GST work. For why trade-in figures sit where they do, see why your trade-in value is so low.

What changes when you sell separately

A trade-in is one deal. The dealer takes your car as part payment and you drive away in the new one. Selling separately splits that into two deals: you sell your car to one buyer and pay the new-car dealer a price with no trade-in.

Consumer Affairs Victoria tells people trading in to ask for the total amount they will pay to leave their car and drive away in another one. That changeover figure hides how the deal is split, so ask for the drive-away price with no trade-in as well. The no-trade price minus the changeover is your real trade figure, and that’s the number an outright offer has to beat.

The same agency notes that trading in is simpler and quicker than selling privately, but you may get less money.

A checklist before you sign the new-car contract

1. Ask for the new car’s drive-away price with no trade-in, in writing.
2. Ask for the changeover with your car traded in, also in writing.
3. Subtract the changeover from the no-trade price. That’s your real trade figure.
4. Get a genuine offer for your car on its own in the same week, so the market hasn’t moved between quotes.
5. If there’s finance owing, ask your lender for a payout figure.
6. Check the contract gives a delivery date. Consumer Affairs Victoria warns that without one you may have a long wait, and suggests including a cut-off date if the timing can’t be confirmed.
7. If you have an ABN, ask whether each figure includes GST.

If the outright offer beats the real trade figure by enough to justify a second transaction, sign without a trade-in. If not, trade in and enjoy the simpler handover.

Timing the sale with your delivery date

The usual worry with selling separately is being left without a car. A trade-in avoids that: you drive the old car in and leave in the new one.

New cars can take weeks or months to arrive, and delivery dates can move, so work back from the date in your contract. Most people take one of three approaches:

• Sell close to delivery. Get your number before you sign, then confirm the sale once the delivery date is firm, so collection lands near the day you pick up the new car.
• Sell first and bridge the gap. If you can manage a few days without a car, you settle your car’s price now.
• Keep both cars for a short time. Sell once the new one is home. Both need rego and insurance in the meantime.

When you sell to us, the order never changes. You get a genuine offer by phone, then a deposit (often the same day), then an inspection at a time and place that suits you. The balance goes into your bank account, and the car is collected only after you confirm the funds have cleared. Tell us your delivery date on the valuation call and we’ll confirm what timing works for your car before you accept.

Used car prices move from week to week. Industry data firm Datium Insights reported used prices down 3.1% in the single week to 12 October 2026. If your new car is months away, ask how long the offer stands and confirm it once the delivery date is firm.

Finance on the car you’re replacing

Owing money on your current car doesn’t stop you selling it separately. It changes who pays the lender.

In a trade-in, the dealer usually pays your lender out of the trade figure. If you owe more than that figure, the shortfall doesn’t disappear. It’s usually added to what you pay on delivery day. If a dealer offers to add it to your new loan instead, you’d be paying interest on money owed for a car you no longer have.

When you sell to us, we deal with your lender directly to pay out the loan, then pay any equity into your bank account. Cars under finance usually take 2 to 3 business days to settle, so allow for that when you plan around your delivery date. If you owe more than our offer, that negative equity has to be covered before settlement, and we show you the numbers before you decide.

Start with a payout figure from your lender. It can differ from the balance in your banking app, because it can include interest up to the payout date and any break fees, and it’s only valid until a set date. Our guide to car loan payout letters explains what to ask for, and our page on selling a car under finance walks through the payout. Once the loan is paid out, the lender’s security interest on the PPSR can be cleared.

GST if you’re trading up through a business

If the car is privately owned, GST doesn’t come into it. The ATO says GST is not payable on the disposal of privately owned assets. That includes a sole trader’s car that wasn’t used in the business and had no GST credit claimed on it.

If you’re registered for GST and the car was used solely or partly in your business, it’s different. The ATO says disposing of it is generally a taxable sale, including when you trade it in. GST is one-eleventh of the price, and on a trade-in the dealer may ask you for a tax invoice showing the trade-in value and the GST. Luxury car tax can also apply when a GST-registered seller sells a luxury car.

Because GST applies whichever way you sell, it doesn’t tip the decision. Ask whether the trade figure and any outright offer include GST, so you compare like with like, and tell us on the call if the car is owned by a business. These are general rules, not advice, so check with your accountant. Our guide to tax when you sell your car has more detail.

When trading in is the better choice

Selling separately isn’t always worth it. Trading in may suit you better when:

• The dealer’s real trade figure is close to, or matches, the outright offer.
• The new car is ready now and you want one handover and one set of paperwork.
• You’d rather not have any gap between selling one car and collecting the next.

Whichever you choose, the outright offer has done its job: it has shown you what your car is worth on its own.

Selling to us when you buy your next car

Sell Your Car Australia is run by Autohaus Australia Pty Ltd, a NSW licensed motor dealer (MD 077404). We buy cars, utes, SUVs and 4WDs 2021 or newer with 100,000 km or less. The offer comes by phone from a valuer who has priced cars since 1992 and supplies dealerships nationwide. It’s a genuine offer, not an online estimate, and it’s for your car alone, with no new-car discount mixed in.

We prepare the sale paperwork and help with the transfer of ownership. Usually no roadworthy or safety certificate is needed when you sell to us. Rules differ by state, so we confirm what applies on the call. We arrange collection anywhere in Australia. The valuation is free, with no obligation and no fees taken out of the offer. Rahul A, who sold us his Mercedes-AMG GLC 43, wrote that the price was “better than any dealer could offer”.

Get your second number before you sign. Start with a free valuation or call 1800 73 55 73. If your car is older or has more kilometres, send it through anyway and we’ll tell you straight away if we can help.