Trading your vehicle at the dealership may be quick and easy but it may not always be painless. The upside of trading is that the dealer does all the paperwork. After settling on an acceptable price, all you have to do is sign the vehicle over and be done with it. The price you pay for the convenience of being relieved of your vehicle may be less cash in your pocket than if you sold it yourself. Many people expect the dealer to give them the Retail value of their vehicle and are often disappointed by the offer presented to them. Unless the vehicle you are trading is in high demand or of special interest to the dealer, its appraised value is likely to be closer to the Blue Book Trade-In value.

To avoid any surprises, be sure to get the Blue Book Trade-In value for your vehicle before you go the dealership. This number-based on the condition of your vehicle-is a more accurate representation of what you may expect to be offered. Keep in mind, the dealer must assume the responsibility for preparing your trade for resale. This process may include mechanical and smog inspections, repairs to make the car ready for sale and warranting the vehicle for the new owner. Of course, he may also sell the car to a wholesaler, in which case he makes little or no profit on the car.

Trading can also help if you are upside down on your old vehicle's loan. The dealer can roll the remaining balance of your current vehicle's loan into the new loan, thus allowing you to trade in your vehicle without having to shell-out additional cash. While this is not advisable-because it inflates the loan beyond the new vehicle's actual value-it is an option for those who must get out of their current vehicle.

Selling - Pros & Cons

Selling your car on your own can be profitable, but requires patience and good judgment. You will have to absorb the cost of making the car presentable and passing any required state inspections or emissions tests. You must also figure what your time is worth, because you will need to be available to answer questions and make appointments for people to see the vehicle and take it for test drives.

Another downside to selling your car yourself is that you may be put in contact with unsavory individuals, or people with whom you just don't feel comfortable. You need to have a good feel for people and have strong negotiation skills. If you do decide to sell your car yourself, be sure to put everything in writing and request payment in the form of a cashier's check. Personal checks can bounce and cash in large quantities is not wise to carry on your person.

TradeAway TradeCredits

If you are selling your current vehicle to buy another vehicle, asset or service, TradeAway TradeCredits may be the method you should consider. You can sell your vehicle now and spend the proceeds if and when you find the right replacement vehicle or asset. This method also gives you the added protection of making sure the transaction is paid pursuant to the agreement since the title will not pass until the credits have been transferred to your account.

Points to Consider When Selling Your Car

* Make your car presentable. At the very least, a good wash and wax of the exterior and complete vacuuming of the interior is in order. If you really want to impress potential buyers, take the car to a professional detailer and have them clean the interior, exterior and engine.

* Sell your car AS IS, you are not a dealer and there is no warranty or return policy in effect.

* Try to have all records complete and neatly arranged for your prospective buyer. This will instill confidence that the car has been well cared for.

* Be honest. Disclose any serious problems or repairs the new owner will have to pay to make the car tip top.

* Set your asking price about a few hundred above what you really want. This allows some room to negotiate.

* Many people like to print out the Kelley Blue Book Suggested Retail value report and tape it to the window. They tell us this helps legitimize their asking price.

Quick Glance Trade vs. Sell

So, if you are the type of person who is comfortable dealing with people and are not in a hurry to get rid of your car, then selling it yourself will probably be a more profitable avenue. On the other hand, if you still owe on your car and cannot afford to be saddled with two car payments or simply do not relish the prospect of having to sell your own car, the dealership offers a hassle-free solution.