When it is time to get a new car, you may find yourself stumped as to what to do with your old one. You have more options than you may think, and in some cases, you may end up in a better situation than you would by hanging onto the car. Explore your options before you make a decision, and make sure you understand how each option works.
Trade the Car In
One of the easiest ways to dispose of your old car is during the process of purchasing a new one. By trading in your vehicle to the dealership from whom you are purchasing your new vehicle, the dealership adds to its inventory of used cars and you receive a specified amount off the purchase price of the new vehicle. The dealership’s mechanics assess your vehicle while you wait and offer you a trade-in value based on the condition of the vehicle. This amount is typically lower than the amount the car would be worth in a private sale. Trading in your car is the best option if you simply want to get the process over and done with quickly.
Donate the Car
You may not be aware of this, but your favorite charity probably accepts used or new vehicles as a form of donation. The charity sells the vehicle at an auto auction and then uses the amount received from the sale of the vehicle toward its charitable activities. As the owner of the vehicle, you receive a tax break for the auction sale price of the vehicle. According to Bankrate, the tax rules regarding donated vehicles are very clear. Since you will not know the amount of your tax donation in advance, you should assume a low value until you hear otherwise about the sale.
Sell the Car on Consignment
Dealerships sometimes offer a service whereby they sell vehicles on a consignment basis. This means that the dealer handles all the aspects of the sale in exchange for a percentage of the selling price. The dealership is responsible for preparing the car for sale, from detailing to advertising the sale. Going down this route gets you more than trading the vehicle in, or donating it, but not as much as selling the car yourself.
Sell the Car Outright
If you opt to sell your car yourself, you ensure that you will see a better return for your vehicle. You must prepare the vehicle for sale, which may involve detailing, mechanical repairs, or cosmetic repairs. Before listing the vehicle for private sale, look up the value information in the Kelley Blue Book. Another option when selling the car outright is to look for companies that buy used cars in your area. These companies offer appropriate amounts for your vehicle, even if it is no longer functional.
When you need to dispose of a vehicle, you have quite a few options. Depending on your circumstances, each option has its own merits. In fact, sometimes a combination of these choices may end up being the best for you.
Image Credits: FreeDigitalPhotos.net /Arvind Balaraman