

                       Sell or Trade - A Tough Decision


               How much will  a car dealer allow you  when you trade
           in your old car? It depends  on a lot of things: Make and
           model, age, condition, mileage, and whether or not it has
           the popular  options, such as  automatic transmission and
           power  steering. It  also depends  to some  extent on the
           price of the  car you are buying. Dealers  have more room
           to deal on expensive late model used cars.

               The  way  cars  are  sold,  it  is often difficult to
           determine just how much  the trade-in allowance is really
           worth.  This is  because used  cars really  have no fixed
           price. Some dealers set  their price high, expecting that
           they may have to bring it  down in order to sell the car.
           If they are aware of your  desire to trade in a car, they
           will bring the price down less, or not at all, then offer
           you a pretty  good allowance on your old  car. If you are
           making a clean  deal, without a trade, they  will be more
           willing to  bring down the advertised  price. In the case
           of dealers who need used  cars, the opposite may be true.
           They may offer  you a better deal with a  trade than on a
           clean deal.

               If  you make  a clean  deal, then  at the last minute
           decide to  trade, you will  probably be surprised  at how
           little the trade-in allowance is.

               Theoretically, the  trade-in value of  a used car  is
           the wholesale value or average  trade-in price set by the
           NADA  Official  Used  Car   Guide  or  some  other  trade
           publication. If you plan to buy  a car from a dealer, and
           trade in  your old one,  it is a  good idea to  call your
           bank or credit union and ask them to tell you the average
           trade-in or wholesale value of your present car. Then you
           will have  some idea what  your trade is  worth. However,
           this  price is  for a  car in  average condition, and the
           judgement  as to  whether a  car is  average, better than
           average, or  worse than average,  is often in  the eye of
           the beholder. The owner often overestimates the condition
           of the car to be traded,  and the dealer, thinking of the
           cost  of  cleaning,  repairing  and  reconditioning, will
           usually form a lower opinion.

               There  are some  advantages to  trading in  your car,
           rather than  trying to sell  it yourself. The  old car is
           taken off  your hands immediately. Within  a few days you
           are driving your new car,  or newer used car, without any
           worry about the old. Another plus for trading is that you
           do not have to turn your  car over to strangers for trial
           drives or, even more disturbing,  go along. That can be a
           major consideration in these lawless times.

               If, however,  you decide to  sell your old  car, here
           are a few suggestions:

               Do  not use  the prices  in dealer  ads to price your
           car. If you  set the price too high, no  one will come to
           look  at it.  Many dealers  repair and  recondition their
           used  cars, and  offer a  warranty. This  increases their
           value. They  may also overstate  the price, as  indicated
           earlier, anticipating  the need to bargain.  But the main
           thing that allows the dealer to get a higher price is his
           car lot.  People pass through  his lot every  day looking
           for  a  car  to  buy,  whereas  you  will  not  have that
           advantage. And consider that the  dealer may need to keep
           a car  on his  lot a  few months  before someone buys it.
           Will you have that much patience?

               In view  of all this,  it is advisable  to price your
           car somewhat below dealer prices for a comparable
           car in  your area.

               Certain  things make  a car  very saleable.  Features
           such  as  automatic  transmission,  power steering, power
           brakes,   air   conditioning,   rear   window   defogger,
           stereo-cassette and  cruise control are  popular and will
           help to sell a car. Other things being equal, low mileage
           is a big plus.

               Manual  transmissions  are  popular  with  some young
           people. As  people grow older they  usually look for more
           conveniences. If  your car has a  manual transmission, or
           is a highly styled model, your market may be limited.

               Generally  speaking,  an  attractive  car  under  two
           thousand dollars  is relatively easy for  a private owner
           to sell. As the price goes  up from there, expect to wait
           a while  for  a  buyer,  unless  your  car is an absolute
           bargain. This fact may help you decide whether to sell or
           trade.

               Cars  in good  condition, priced  under one  thousand
           dollars,  sell very  quickly in  most metropolitan areas.
           Remember  that you  do not  necessarily have  to get more
           than  the dealer  said he  would give  you. You can often
           come out ahead selling your  car for less than the dealer
           offered on a trade. The  real value of the dealer's offer
           is the difference between the  price of the new car after
           deducting the  trade-in, and the price  the new car would
           have  sold  for  on  a  clean  deal.  This  figure may be
           difficult for you to determine, because dealers are quite
           expert  at concealing  it, but   give it  a try.  You can
           probably sell your under-$1000 car for more than the cash
           value of the dealer's offer.

               If your  state requires periodic  safety inspections,
           have the latest inspection sticker on the car. Thoroughly
           clean the car inside and out.  Get a lube and oil change.
           If it's running rough, give it  a tuneup. Have at least a
           quarter tank of gas.

               Now you  are ready to sell  the car. The best  way to
           advertise  is  in  the  classified  pages  of  your local
           newspaper. Keep the ad simple and don't try to be clever.
           State the year, make and model, best features, the price,
           and your  telephone number. If it's  an asking price, say
           so. If it's a firm price, likewise.

               If  you like,  you can  also type  up little  ads and
           place  them on  bulletin boards  in super  markets and at
           work (if it's permitted.)

               Some  people like  to place  a For  Sale sign  in the
           window of the car and park it in the driveway or in front
           of the house. If you  do this be prepared for prospective
           customers knocking on your door at inconvenient times.

               Most prospects will want to  test drive the car. This
           is  to  be  expected.  Test  drives  should  be  taken in
           daylight and limited to within a few blocks of your home.
           Whether  or not  you go  with the  prospect is a personal
           choice.  Some  people  prefer  to  hold  the  prospective
           buyer's drivers license and let  them take the car alone.
           If you do this, be sure  to note down all the information
           from  the driver's  license in  case you  later discover
           that  the car  was returned  with a  different battery or
           tires.

               When you find someone who is willing to buy your car,
           do  not accept  a personal   check. Insist  on cash  or a
           certified check. Give them a receipt, on which you should
           note that the car is sold  As Is. It will be necessary to
           go before a notary public  to have the title transferred.
           Wait until  you get before the  notary before signing the
           title.  It is  customary for  the buyer  to pay all costs
           involved in transferring the title and licensing the car,
           including the notary fee and state tax, if any.

               After reading  the above and seeing  what is involved
           in  selling your  car, you  may decide  to trade  it. But
           whichever you decide to do,  trade or sell, good luck and
           happy dealing.

                                 End




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