Buying a new car usually means getting rid of your old one. And it’s always wise to get the best value out of your old car when you’re shopping around for a new vehicle. The value of your old car coupled with the car tax break issued until December 31, 2009 can give you significant savings.
The two most common ways of getting value from your old vehicle is either to trade it in to a dealer or to sell it.
But which option offers the best value?
The answer: It really depends
There is no definitive answer since both options have their pros and cons. Either can be advantageous, depending on a person’s specific situation.
The biggest advantage of selling your car on your own is that it gives you the best assurance of receiving top dollar. This is because the trade-in value is usually lower than the selling price of your car.
So why would anyone want to trade their car in? Because trading your car in is more convenient and offers less risk. And should you choose to buy a car the very same day, you will receive a tax advantage.
When selling the car yourself, you must pay for advertising, meet interested buyers and arrange test drives. If a sale pushes through and your car breaks down, you could also be faced with legal battles.
General Car Sale and Car Trade-in Tips
If you know someone you trust who is interested in buying your old vehicle at the price range you want, sell the car to that person so you can bypass the advertising cost and maximize your profit. If not, trading your car in will likely offer less risk and headaches.
In both cases, you must ensure that you present your car in the best possible way. Maximize its value so you can increase your negotiating advantage and make the most out of your old car.
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