If you are in the market for a new car, you are probably
wondering what to do with your old one. Whether the car you
drive now is an old clunker or of a relatively new vintage,
you have a number of choices when deciding how to get rid
of it.
Each of the options has its own set of benefits and
potential drawbacks, so it is important to weigh the pros
and cons carefully when trying to get the most for your old
set of wheels. Here are some of the options you have when
selling your old car.
Sell It Yourself
Selling your car on your own is likely to yield you the best price, but it can sometimes be a hassle. You will need
to advertise your vehicle, decide how much to ask for it
and deal with buyers that can sometimes be demanding or
unreasonable.
You will also need to keep your old car insured to allow
for test drives and other use, and those insurance costs
can really add up if it takes several months to sell your
car. It is important to weigh the potential for greater
gain against the cost and hassle of selling the car on your
own.
Trade It In
Trading your old car in on a new one is probably the
easiest way to go, but there are some drawbacks to this
approach. For one thing the dealer is unlikely to offer you
the same price you could get on your own. After all, the
dealer needs to make a profit on the resale.
If the car dealer does offer you a great price for your
trade-in, they may make up for it by inflating the price of
the new car you are buying. You will need to be on guard
for this tactic and do your homework when negotiating a
price.
If you plan to trade in your old car, be sure to negotiate
the price of the new car before discussing your trade-in.
Drive your best bargain on the car you are buying and talk
about the trade in afterwards.
Put It on Consignment
A consignment lot offers an interesting com promise between
selling the car on your own and trading it in at the dealer.
Consignment lots tend to be located in high traffic areas,
allowing them to attract more buyers That can mean
a quicker sale, and more money than you could get from a
dealer trade.
The owner of the consignment lot will take a cut of the
purchase price, so you probably will not get as much as you
would from a private sale. Even so, the ease of selling
your car on consignment may be worth the slight reduction
in the sale price.
Donate It to Charity
If you have a cause you believe in, you may be able to turn
your old car into cash for your favorite charity. Many
charities accept donations of used cars, so you can do
something good for someone else and get rid of your old set
of wheels at the same time.
Donating your car to charity makes sense of you itemize
your deductions, since you will be able to take a tax
deduction for its value. Keep in mind that the value of
that deduction will be less than what you could get for the
car through a private sale, but you will be helping a cause
you believe in.
Buying a new car is exciting but dealing with your old set
of wheels can be a frustrating experience. Knowing your
options can make selling your old car a lot easier and less
stressful, and the choices listed above can help you get
started.
