by Mona Gallagher

Created on: November 06, 2008   Last Updated: November 16, 2008

When it comes time to buy a car, consumers often want to use their cars as trade-ins to offset the cost of the new purchase but does it really matter how and where you sell your old car? For instance if you use your car as a trade-in you will that give you the best return on your hard earned money?

You could face losing upwards of two thousand dollars on its current value as a trade-in, while selling to a private buyer might bring a small profit. Value is the starting point at setting a price and getting the best deal for your car.

Car's selling price

If you're an Internet user, as most of us are, there are several methods to find the selling price of a used car; some are more precise than others for reasons that will be clear if you're trading your car to offset the price of a new car. The Kelley Blue Book is a favorite tool for finding the value of your car. Many consumers are satisfied with this solitary tool.

For a quick start, however, visit the online or newspaper ads for car dealers and find what your model car is selling for in their dealerships. Keep in mind though; the condition of your car is a factor in resale value.

A better resource is a site like Edmunds where you'll find an interactive car valuation for your make, model, year, and the general condition of your car. Find there the selling price for private sales and the approximate trade-in allowance if you decide to use your vehicle as a trade-in. Print the information for further comparison.

If your car is on its last legs, or has a major engine or other power system problem that renders it unfit to drive, you can still sell it to an auto auction. The Black Book is a useful tool when selling to an auto auction and it's the preferred manual for auction sellers and buyers. Their website updates prices on a daily basis.

Once you know the value, you can affix a price tag to your car. You can ask a slightly higher price than you'll accept to give yourself some negotiating room, but keep it within reason or you won't attract many potential buyers.

Should you sell to private party or dealership?

Selling your car to a dealership is the easy way to go and your trade-in offsets the cost of your new car. Many people go this route because they don't have time to see private buyers, don't want the inconvenience of setting appointments or they're not comfortable negotiating a sale.

People who sell to a private party do so for the express purpose of getting more money for their car.
After doing the research to find

• 1
• 2
• Next Page >>