Everyone talks about selling their car like it is an easy thing to do, but is it really? It can be confusing when you are trying to sell your car as to what the best way to do it really is. Should you trade it in? Sell it private party? And if you sell it private party, how do you do it? Let’s explore all these questions and more.

1. To trade it in or not trade it in?

There are pros and cons to trading your car in at a dealership that you will want to be aware of when weighing out this option. When you trade your car in for another purchase, the dealer will simply “value” your car and keep it when you drive your new car home, crediting your new purchase with the value of your old car. However, if you still owe on your old car, this could present a problem. Dealers will usually pay off your current loan, but roll the amount owed still into your new loan, helping you to get “upside down” on the value of your new car. If you wanted to sell your new car, you would not only take a loss on the value driving off the lot but also with the amount from your old vehicle that got rolled into your loan. On top of this, dealerships will pay you less than the private party value you may get selling it outside. While there is a possible double financial hit to consider, for some people, the ease of trading your car in and not having to deal with uncomfortable situations selling your car privately is worth the loss. If you can manage to pay off your car before buying a new one and trading it in, it will help keep your loan lower and your payments lower as well.

2. Sell your car to a large dealership.

There are many dealerships (CarMax comes to mind) that will buy your car outright without requiring that you buy a car from their inventory. While they may not give you the best deal and could shortchange your car’s value, there is still more ease and convenience to this option. You essentially walk into a participating dealership, they value your car, cut you a check, and you walk away. You don’t have to market your car or wait for it to sell. The downside is again, you don’t make what you potentially could on a private party sale.

3. Finally, you can sell “private party”, meaning you find a buyer outside of a dealership to sell your car to.

Many people utilize sites like offerup, letgo, facebook marketplace and craigslist to market their car to potential buyers for free. There are also car specific sites that you can list your vehicle on, most times for a small fee. You can also check community options (some cities have private car sales meetups and groups) as an option. Make sure to write an honest ad, take great pictures that show imperfections as well as additional value, and price your car appropriately. Checkwww.kellybluebook.com for a good general idea of the value of your car in the private marketplace. Also, be sure to clean your car thoroughly- a professional detail will likely net you more money than it costs you. Be available to meet and always answer inquiries promptly. Don’t give a good buyer a reason to move on to someone else. If you still have a loan on your car it can be trickier, call your lender and see what process they have for releasing the title. In some cases, you may need to take out a loan to cover the difference in what you sell it for vs. what you owe, but depending on the situation, this could still save you money in the end.

Whatever option you choose, remember to keep your safety paramount. Always meet in public places, during daylight hours if possible. If you have to meet at night, meet somewhere with a lot of people around that is well lit. You can try to transact at a bank during business hours where you can check to make sure the cash is legitimate- and don’t accept personal checks. If a deal sounds too good to be true, it probably is. Use common sense and protect yourself at all times. With smart advertising and a plan in place, you can have your car sold in no time!