Buying a car often means figuring out what to do with the one you currently have. Some people, when buying from a dealer, choose to trade in their old vehicle. Others, like my streetsmart pennypinching dad, would never do that in a million years. What you choose really depends on the type of person you are and what’s important to you.
If you trade in, you get everything done in one transaction. You don’t have to worry about looking for someone to buy your old car. Another positive to trading in: it lowers sales tax because you’re paying less for the vehicle you’re buying.
The alternative to trading in, is selling a car on your own. That’s definitely an investment of time, since you need to do all the legwork in getting the car shipshape, setting up appointments, and talking with potential buyers. Many folks are uncomfortable with or unwilling to engage in this process, so if you’re one of them then you’ll probably trade in.
Keep in mind that the dealer will try to lowball you, so if you’re comfortable doing a little haggling, make sure you’re aware of the blue book value of the car (check www.kbb.com). Quote that value to the dealer and ask for a higher trade-in credit. It’s only fair to do so, since the blue book value is widely accepted as correct and reasonable.
However, if a few thousand bucks is a significant amount of money for you, consider selling your old car to a private buyer. It’s widely known that dealers credit trade-ins at $3,000 to $4,000 lower than blue book value. These days, with the internet as your friend, you can get your car-selling message to thousands of potential buyers. If you want, you can even target your ad to people looking to buy from a private seller – you – as opposed to a dealer. BestCarFinder.com has a special section where only private owners post, so buyers looking for you can find you easily.
My dad – a regular guy with an engineering job – has been buying and selling used cars for fun since the early 80s. Back then it was a little more challenging to broadcast the message that your car is for sale. These days, you can use BestCarFinder.com, Craigslist.org or other websites to announce your message instantly. For more information on what you need to do when selling your used car, click here (link to article about first-time car selling).