The process of buying a car requires research. In addition to getting a CARFAX History report, there's the research for the best car price, research for the car's reliability and also research to make sure the car is safe. The amount of pre-work increases just a little if a consumer has to trade in an old car to buy the new. Fortunately, there are several free online tools to help determine the value of a trade in. Edmunds and Kelley Blue Book are well known and well respected in the automobile industry. They provide top notch consumer information when it comes to buying and selling cars. NADA (National Automobile Dealers Association), not as well known to consumers as Edmunds or Kelley Blue Book, is another trusted organization used by car buyers and auto dealerships alike. These three organizations can prove invaluable when it comes to determining a car's trade in value. It makes sense to spend a few minutes on each site to calculate and compare car trade in values. Doing so will help when it comes to negotiating the car's value with the dealership.Read more at Suite101: Free Auto Trade In Value Calculators: How to Get the Best Value for Trading In a Used Car. To use Edmunds, go to their website (Edmunds.com) and click on the "Use Car" link. Once there, choose the make, year model and trim (aka style) for the car that's been traded in. At this point Edmunds will provide a vehicle trade-in value, but don't stop there. The value displayed at this point in the process is the average trade in value for all vehicles matching the year, make, model and trim. It does not provide a trade in value for the specific car in a specific area of the country. That type of information requires more input from the consumer. To get vehicle specific trade in value consumers must provide information such as car color, mileage and special equipment options. After providing detailed information, tell Edmunds about the condition of the car and zip code location. At this point, Edmunds has enough information to provide the trade in value for the car in the area requested.Read more at Suite101: Free Auto Trade In Value Calculators: How to Get the Best Value for Trading In a Used Car. To calculate the trade in value using the Kelley Blue Book, navigate to their website (Kbb.com) and select the vehicle's make, year and model. Unlike the Edmunds tool, Kelley Blue Book forces its users to decide beforehand what type of value they want. The choices are Trade-In (the option to select in this case), Private Party Value, Suggested Retail Value and Certified Pre-Owned Value. After selecting Trade-In value the remainder of the process is similar to Edmunds. Choose the vehicle trim, the mileage, special equipment options and vehicle condition. Once all of the information is entered, it's time to get the trade in value report.Read more at Suite101: Free Auto Trade In Value Calculators: How to Get the Best Value for Trading In a Used Car.
Trade-in value is generally lower than the amount you could sell the car for yourself in a private-party sale, but by trading in you avoid significant pitfalls. You save time, effort and potential post-sale headaches. As Donna Reichle, spokeswoman for the National Automobile Dealers Association, explained, "If you sell your car yourself you are basically making yourself available to the buyer. When you trade in your car to a dealer you absolve yourself of liability."
Trading in is about convenience—there are no advertisements to place, no test drives to arrange, and no legal battles to fight if your recently-sold car breaks down. For those people without the time or inclination to sell a car on their own, trading in makes sense. Once a car is in the dealer's hands, it's the dealer's responsibility to prepare it and handle the resale.
Of course, for those efforts and responsibilities a dealer is justified in setting a suggested retail value on the vehicle that is higher than the trade-in value. The higher price covers refurbishing, marketing costs, "and, frankly, dealer profit," said Reichle. "The next person buying the car gets the advantages the dealer has put into it," she added.
Trading-in may also offer a tax advantage if you are buying a vehicle at the same time. In most states, according to dealers and regional authorities contacted by MSN Autos, when your car is taken in trade you only pay sales tax on the difference in cost between its trade-in value and the price of the new car. For example, if a dealer gives you $10,000 on your trade-in and the purchase price of the car you are buying is $25,000, you'll only be required to pay sales tax on the $15,000 difference between the two amounts. In states with a high sales tax, this benefit can help narrow the difference between trade-in value and private party price.
Selling Your Car Yourself
Selling a car on your own is good insurance that you'll obtain top dollar, and it may be your only option if you are buying your next vehicle through a private-party sale. But be aware of the work involved. Prepping your vehicle for sale will take time, and depending on its condition may also cost you some money. Honestly assess the car's condition, and then decide how much you want to spend on minor repairs, always remembering the liability involved with a private-party sale. Be sure to fix things well enough to avoid running into possible legal troubles farther down the road.
Once the vehicle has been cleaned and repaired, you'll need to determine what it's worth. All of the dealers interviewed by MSN Autos suggested using Kelley Blue Book values as a starting point. By looking at both the trade-in and suggested retail values listed by Kelley for your car, you can determine an asking price somewhere between them. Also check your local newspaper's classifieds, and newsstand publications containing used-car ads in order to determine local market pricing. Look for listings of vehicles similar to yours and compare their asking prices. Using multiple sources helps assure that you arrive at a fair and realistic asking price.
The next step is to advertise and field phone calls. Since most private party vehicles are sold through local classifieds or used-car publications, start by placing ads in those but be prepared to advertise in multiple sources. Remember to calculate the costs involved. If the car doesn't sell right away, make sure you can afford to run ads for an extended period of time if necessary.
After the ads have been placed, remember to set aside time to answer phone calls and meet interested parties for test drives. Prepare yourself for possible scheduling hassles like multiple buyers wanting to see the car at the same time, and for negotiating in general. How low a price will you really accept? How will you handle competing offers and other dilemmas?
When you finally find a buyer and have the money in hand, the last step is to transfer the title and registration, and cancel your insurance on the vehicle.
Selling Your Car on ConsignmentA third, relatively trouble-free way to sell your car is through dealer consignment. In this scenario, the dealer typically handles the sale of your car in exchange for a service fee and/or a 6-10 percent commission on the eventual sale of the vehicle. It's then their responsibility to detail, display, and sell your vehicle for a price you determine. This arrangement frees you from the day to day hassles of selling the car on your own and almost always nets a higher value than simply trading it in.
However, consignment is not for everyone. Only select dealerships even accept vehicles for sale on consignment. Most prefer to take cars in on trade. Those that do are usually specialty dealerships targeting buyers of specialty vehicles such as sports cars, luxury cars and classics. So if you've got an aging Taurus, consider trading or selling on your own. If on the other hand, you've got a classic Ferrari or Porsche, consignment could save you from the ordeal of selling it yourself.
Donating Your Car to CharityAnother way to get rid of your used car is to donate it to charity. An attractive alternative to many people just on principle, some also find the greatest advantage of donating a car is the ease with which it takes off their hands a low-value, hard-to-sell vehicle.
In the market for a new car? MSN Autos is pleased to provide you with information and services designed to save you time, money and hassle. Click to research prices and specifications on any new car on the market or click to get a free price quote through MSN Autos' New-Car Buying Service.
Trade-in value is generally lower than the amount you could sell the car for yourself in a private-party sale, but by trading in you avoid significant pitfalls. You save time, effort and potential post-sale headaches. As Donna Reichle, spokeswoman for the National Automobile Dealers Association, explained, "If you sell your car yourself you are basically making yourself available to the buyer. When you trade in your car to a dealer you absolve yourself of liability."
Trading in is about convenience—there are no advertisements to place, no test drives to arrange, and no legal battles to fight if your recently-sold car breaks down. For those people without the time or inclination to sell a car on their own, trading in makes sense. Once a car is in the dealer's hands, it's the dealer's responsibility to prepare it and handle the resale.
Of course, for those efforts and responsibilities a dealer is justified in setting a suggested retail value on the vehicle that is higher than the trade-in value. The higher price covers refurbishing, marketing costs, "and, frankly, dealer profit," said Reichle. "The next person buying the car gets the advantages the dealer has put into it," she added.
Trading-in may also offer a tax advantage if you are buying a vehicle at the same time. In most states, according to dealers and regional authorities contacted by MSN Autos, when your car is taken in trade you only pay sales tax on the difference in cost between its trade-in value and the price of the new car. For example, if a dealer gives you $10,000 on your trade-in and the purchase price of the car you are buying is $25,000, you'll only be required to pay sales tax on the $15,000 difference between the two amounts. In states with a high sales tax, this benefit can help narrow the difference between trade-in value and private party price.
Selling Your Car Yourself
Selling a car on your own is good insurance that you'll obtain top dollar, and it may be your only option if you are buying your next vehicle through a private-party sale. But be aware of the work involved. Prepping your vehicle for sale will take time, and depending on its condition may also cost you some money. Honestly assess the car's condition, and then decide how much you want to spend on minor repairs, always remembering the liability involved with a private-party sale. Be sure to fix things well enough to avoid running into possible legal troubles farther down the road.
Once the vehicle has been cleaned and repaired, you'll need to determine what it's worth. All of the dealers interviewed by MSN Autos suggested using Kelley Blue Book values as a starting point. By looking at both the trade-in and suggested retail values listed by Kelley for your car, you can determine an asking price somewhere between them. Also check your local newspaper's classifieds, and newsstand publications containing used-car ads in order to determine local market pricing. Look for listings of vehicles similar to yours and compare their asking prices. Using multiple sources helps assure that you arrive at a fair and realistic asking price.
The next step is to advertise and field phone calls. Since most private party vehicles are sold through local classifieds or used-car publications, start by placing ads in those but be prepared to advertise in multiple sources. Remember to calculate the costs involved. If the car doesn't sell right away, make sure you can afford to run ads for an extended period of time if necessary.
After the ads have been placed, remember to set aside time to answer phone calls and meet interested parties for test drives. Prepare yourself for possible scheduling hassles like multiple buyers wanting to see the car at the same time, and for negotiating in general. How low a price will you really accept? How will you handle competing offers and other dilemmas?
When you finally find a buyer and have the money in hand, the last step is to transfer the title and registration, and cancel your insurance on the vehicle.
Selling Your Car on ConsignmentA third, relatively trouble-free way to sell your car is through dealer consignment. In this scenario, the dealer typically handles the sale of your car in exchange for a service fee and/or a 6-10 percent commission on the eventual sale of the vehicle. It's then their responsibility to detail, display, and sell your vehicle for a price you determine. This arrangement frees you from the day to day hassles of selling the car on your own and almost always nets a higher value than simply trading it in.
However, consignment is not for everyone. Only select dealerships even accept vehicles for sale on consignment. Most prefer to take cars in on trade. Those that do are usually specialty dealerships targeting buyers of specialty vehicles such as sports cars, luxury cars and classics. So if you've got an aging Taurus, consider trading or selling on your own. If on the other hand, you've got a classic Ferrari or Porsche, consignment could save you from the ordeal of selling it yourself.
Donating Your Car to CharityAnother way to get rid of your used car is to donate it to charity. An attractive alternative to many people just on principle, some also find the greatest advantage of donating a car is the ease with which it takes off their hands a low-value, hard-to-sell vehicle.
In the market for a new car? MSN Autos is pleased to provide you with information and services designed to save you time, money and hassle. Click to research prices and specifications on any new car on the market or click to get a free price quote through MSN Autos' New-Car Buying Service.
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