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all about trade-ins

If you plan to trade in a car for a newer one, do your best deal for the new one first. Then, in a completely separate transaction, talk about your trade-in.

Visit www.edmunds.com on the Web to find out what the older car is worth. You will find two prices, the trade-in price and the retail or market price. The trade-in price is what the dealer might offer you for the vehicle. The retail price is what he will try to sell it for off his lot. Usually, if you sell the car yourself, you might get an amount half way between the two numbers. Knowing that, you can decide if it's worth the effort to try to sell it yourself. If you do, you will have to talk to neighbors, buy a classified ad in the local paper, fix the car up so it's ready to show and make yourself available to show the car, answer questions about its condition, the care you have given it, etc. Potential buyers will try to talk you down on your price, so it's good to know the range of numbers in the NADA pricing guide or the Kelly Blue Book. Know how much you still owe on it, if it's not paid off, and what you must have for it. How low are you willing to go? It's your call, but knowing where you stand in that range makes that process a little easier.