When it comes to buying a new car, one of the biggest decisions-and one of the toughest challenges-is whether to trade in your current vehicle at the dealership or put it up for sale yourself. Both have their advantages (and disadvantages) so it’s a good idea to think this through first before you’re sitting in a room with a salesperson who is asking you for an on-the-spot decision. Here are some pros and cons of each approach, but in the end you need to go in the direction that feels most comfortable to you. Want to know what your car is worth? Just go to your credit union’s website and click "Trade-In Values."

• Trade
  Trading in your vehicle at the dealership may be quick and easy, but it may not be painless. The primary 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. To avoid any surprises, be sure to get the 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. 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.

• ...Or Sell
  The bottom line is this: Selling your car on your own probably means you might make more money...but it requires patience, confidence and knowledge. Keep in mind that you will have to cover the cost of making the car presentable and passing any required state inspections or emissions tests. You will also need to be available to take phone calls at all hours, answer questions about potentially unfamiliar details, make appointments for people to see the vehicle, and take it for test drives (or trust potential buyers). Prepare to meet individuals you don’t know or have any reason to trust. You need to have a good feel for people and have strong negotiation skills. Remember that your buyer will need to cover the entire cost of the car and won’t have the advantage of being able to finance it, which could limit your shoppers. Finally, be sure to put everything in writing and request payment in the form of a cashier’s check. Personal checks can bounce and large quantities of cash are not ideal to accept or carry around. Never, ever permanently hand over the keys to your car without having the money in hand. In the end, decide how much money you have to make (to cover your expenses and retire your debt) and then go down that path.

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