Finding a good deal is all about competition. Prices go down when multiple companies sell the same thing. Whether it’s 
Trade-it, Junk-it, or Give it to Charity?
What are you going to do with that old car when you buy a new one?
There are more options and considerations than you might think. You’ll probably get the most money if you can sell it to a private party, but a trade-in could actually net you more because of the tax implications. Donating to charity might give you a warm fuzzy, but you might just need someone to haul it off your front lawn so you can see your neighbor’s trailer again.
Below is a flow-chart to help you figure out how to get rid of your old car. Before you get started, go to Edmunds and find out both the trade-in value and the private party sale value. You may also want to get an online appraisal from a used car dealer or Autotrader.com. The online appraisal number will likely be lower than the Edmunds trade-in number, but it will give you an idea of exactly how much you would get if you had to sell today. Participating car dealers are required to honor Autotrader online appraisals provided you are factual about the condition of your car.
A Flowchart to Determine How to Get Rid of Your Old Car
There are a few generalizations in the above chart, but hopefully it helps with your decision making process. If you’re feeling really generous and want to give a $5,000 car to charity, by all means go ahead! Just be sure to understand the tax law before you try to write-off any large numbers. There are also hundreds of charities that will accept these donations and some are better than others, so do your research. Lastly, if you decide to trade-in, make sure you read these steps to get the most money for your trade-in.
Here are a few more resources to help:
- *How to calculate the tax savings when trading-in your car
- Get estimated trade-in and private party values from Edmunds
- Vehicle donation tips
- Free junk vehicle removal
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Why is it free? Because buying a car is something almost everyone has to do and I strongly believe the process is designed to confuse and take advantage of consumers. I'd like to level the playing field and give everyone a chance at a fair deal.
Awesome chart.
I always buy used cars and by the time I am done with them, there isn’t much left to trade in. Autotrader is a great resource and I have bought a lot of cars using it.
Great post. I wish I had this chart when I was making the decision about what to do with my 1st car.