Looking to get top dollar for your car trade? Do not trade it to a car dealer! The best financial advisers in the US will tell you that you are losing money the instant you trade in your used car for a shiny new car. The sales people know it, and they will do nearly anything to convince you that your trade in helps you make money on your trade. Its an absolute fallacy and they know it! If you have five minutes to burn, this will save you hundreds, maybe thousands of dollars on your next car purchase. Please follow along with me to show you how you are being duped.

Lets take a hypothetical scenario of Ms. XYZ cruising up to an auto dealer in her five year old Honda Accord. It has average mileage and in relatively good condition. It has a few paint chips marks on the hood from her commute to work, and a slight ding on the passenger side door. Mechanically, the car is perfect but could use four new tires and replacing the brakes. Sounds like a good trade in right?

Wrong! Not only did the salesperson think of overcharging Ms. XYZ if she happened to buy a new car, but also looked at her used Honda as a 10% or more profit by fixing it up in the dealer's garage for much less than she would pay, then selling it at auction. Even better, the salesperson might decide the car is to nice to sell at auction, and is capable of making a better profit by fixing it up, adding a new price tag 25% higher than was paid to her, and later laughing all the way to the bank.

Still don't believe me? Check out the National Automobile Dealers Association's website (http://www.nadaguides.com) for the latest rates on your car's estimated value. Take note that this is an estimate based on mileage, mechanical features/problems, and curb appeal. Then take it to your local auto dealer for an estimate. Better yet, if you have time take it to several auto dealers. Chances are that your car's NADA or Kelley Blue Book estimated value will be greater than the trade in values you received from the auto dealer(s).

Now that you are asking, why do people trade their used car at a car dealership? One word: convenience! Its simply more convenient for the average consumer to sell their car at the dealership than attempt to sell it themselves. A dealer typically has two tactics when making an offer on a used car. First, the dealer could offer you a bare minimum on your trade and possibly leave the sticker price of the new car you want relatively untouched. The second

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