CHAPTER 11- GETTING THE MOST FOR YOUR CAR

he Internet is a wonderful tool for helping find a new vehicle; youcan compare features and prices, and even negotiate your

Tpurchase price. But the plot thickens when you have a car or truckto trade in or sell.^

If you haven’t already, I’d encourage you to read the last chapter. In it, Iexplain how to appraise a car, how the Blue Books and reports such as (^)
CARFAX affect values, and give lots of tips on how to get a great vehiclefor a good price. If you’re on the other side of the equation, knowing what (^)
buyers will be thinking will help maximize what you get for your car.
Also, watch the video segments “Getting the most for your trade-in” or“Getting the most when selling your car.” You will also appreciate the videos (^)
on how a dealer appraises a trade-in, as you’ll then be aware of what theyare looking for.
TRADE IN OR SELL RETAIL?
One of the biggest determinates on whether to trade or try to sell outright isthe sales tax law in your particular state. For example, in Colorado, where I
live, buyers pay sales tax on the netthey are buying and the value of what they’re trading in. As a simple difference between the vehicle that
example, let’s imagine your trade is worth $17,500 if sold retail through thepaper, and the most a dealer would offer on trade was $15,500. Yet, at a
7.5 percent sales tax rate (pretty typical nationwide), the sales tax savingswould be $1,162.50. That’s almost half the difference, which can be a