Sell or Trade - A Tough Decision How much will a car dealer allow you when you trade in your old car? It depends on a lot of things: Make and model, age, condition, mileage, and whether or not it has the popular options, such as automatic transmission and power steering. It also depends to some extent on the price of the car you are buying. Dealers have more room to deal on expensive late model used cars. The way cars are sold, it is often difficult to determine just how much the trade-in allowance is really worth. This is because used cars really have no fixed price. Some dealers set their price high, expecting that they may have to bring it down in order to sell the car. If they are aware of your desire to trade in a car, they will bring the price down less, or not at all, then offer you a pretty good allowance on your old car. If you are making a clean deal, without a trade, they will be more willing to bring down the advertised price. In the case of dealers who need used cars, the opposite may be true. They may offer you a better deal with a trade than on a clean deal. If you make a clean deal, then at the last minute decide to trade, you will probably be surprised at how little the trade-in allowance is. Theoretically, the trade-in value of a used car is the wholesale value or average trade-in price set by the NADA Official Used Car Guide or some other trade publication. If you plan to buy a car from a dealer, and trade in your old one, it is a good idea to call your bank or credit union and ask them to tell you the average trade-in or wholesale value of your present car. Then you will have some idea what your trade is worth. However, this price is for a car in average condition, and the judgement as to whether a car is average, better than average, or worse than average, is often in the eye of the beholder. The owner often overestimates the condition of the car to be traded, and the dealer, thinking of the cost of cleaning, repairing and reconditioning, will usually form a lower opinion. There are some advantages to trading in your car, rather than trying to sell it yourself. The old car is taken off your hands immediately. Within a few days you are driving your new car, or newer used car, without any worry about the old. Another plus for trading is that you do not have to turn your car over to strangers for trial drives or, even more disturbing, go along. That can be a major consideration in these lawless times. If, however, you decide to sell your old car, here are a few suggestions: Do not use the prices in dealer ads to price your car. If you set the price too high, no one will come to look at it. Many dealers repair and recondition their used cars, and offer a warranty. This increases their value. They may also overstate the price, as indicated earlier, anticipating the need to bargain. But the main thing that allows the dealer to get a higher price is his car lot. People pass through his lot every day looking for a car to buy, whereas you will not have that advantage. And consider that the dealer may need to keep a car on his lot a few months before someone buys it. Will you have that much patience? In view of all this, it is advisable to price your car somewhat below dealer prices for a comparable car in your area. Certain things make a car very saleable. Features such as automatic transmission, power steering, power brakes, air conditioning, rear window defogger, stereo-cassette and cruise control are popular and will help to sell a car. Other things being equal, low mileage is a big plus. Manual transmissions are popular with some young people. As people grow older they usually look for more conveniences. If your car has a manual transmission, or is a highly styled model, your market may be limited. Generally speaking, an attractive car under two thousand dollars is relatively easy for a private owner to sell. As the price goes up from there, expect to wait a while for a buyer, unless your car is an absolute bargain. This fact may help you decide whether to sell or trade. Cars in good condition, priced under one thousand dollars, sell very quickly in most metropolitan areas. Remember that you do not necessarily have to get more than the dealer said he would give you. You can often come out ahead selling your car for less than the dealer offered on a trade. The real value of the dealer's offer is the difference between the price of the new car after deducting the trade-in, and the price the new car would have sold for on a clean deal. This figure may be difficult for you to determine, because dealers are quite expert at concealing it, but give it a try. You can probably sell your under-$1000 car for more than the cash value of the dealer's offer. If your state requires periodic safety inspections, have the latest inspection sticker on the car. Thoroughly clean the car inside and out. Get a lube and oil change. If it's running rough, give it a tuneup. Have at least a quarter tank of gas. Now you are ready to sell the car. The best way to advertise is in the classified pages of your local newspaper. Keep the ad simple and don't try to be clever. State the year, make and model, best features, the price, and your telephone number. If it's an asking price, say so. If it's a firm price, likewise. If you like, you can also type up little ads and place them on bulletin boards in super markets and at work (if it's permitted.) Some people like to place a For Sale sign in the window of the car and park it in the driveway or in front of the house. If you do this be prepared for prospective customers knocking on your door at inconvenient times. Most prospects will want to test drive the car. This is to be expected. Test drives should be taken in daylight and limited to within a few blocks of your home. Whether or not you go with the prospect is a personal choice. Some people prefer to hold the prospective buyer's drivers license and let them take the car alone. If you do this, be sure to note down all the information from the driver's license in case you later discover that the car was returned with a different battery or tires. When you find someone who is willing to buy your car, do not accept a personal check. Insist on cash or a certified check. Give them a receipt, on which you should note that the car is sold As Is. It will be necessary to go before a notary public to have the title transferred. Wait until you get before the notary before signing the title. It is customary for the buyer to pay all costs involved in transferring the title and licensing the car, including the notary fee and state tax, if any. After reading the above and seeing what is involved in selling your car, you may decide to trade it. But whichever you decide to do, trade or sell, good luck and happy dealing. End