But what kind of information should you include in your ad? You want to include enough information about your car to help the potential buyer reach a decision about whether or not the car is right for him or her. For example, some drivers are only interested in an automatic transmission – therefore, including the information that your car has a manual transmission in your ad would automatically remove your car from this potential buyer’s consideration. What you don’t want is to put so little information in your ad that buyers either ignore your ad altogether or call you for lots of information – wasting your time and theirs.

On the other hand, most places that run ads charge based on the length of your ad. Obviously, you don’t want to spend more on your ad than you need to, so brevity is important. Abbreviations are fairly standard in ads – look at other ads to get an idea of what the standard abbreviations are. However, don’t use abbreviations at the expense of clarity – a confused buyer isn’t going to call you for clarification.

The following are the three things that are absolutely essential to your classified car ad:
The make, model and year of your car
How many miles the car has on it
The type of transmission your car has

Of course, there’s additional information you can include that’s not strictly essential, but desirable. These are generally things that set your car apart and would entice a buyer to choose your car over a similar one. Include these kinds of things in your ad:
Amenities like a 6-disk CD changer or built in GPS system appeal to buyers.
If the car has had only one owner, include that information. Knowing the car’s entire history can be a big selling point with potential buyers.
If you don’t smoke, be sure to include that. Some people only want cars that have been owned by non-smokers.
If the majority of miles on the car are highway miles rather than city driving, be sure to mention that as well.
If the car has been regularly maintained and you have service records, make sure you include that information. 

Finally, you need to include the price of the car and your contact information. There are those who would argue that if you don’t include the price, interested persons will have to call you, giving you the opportunity to try to persuade them to look at and buy your car. However, this strategy can back-fire for more than one reason. First, you’ll have more phone calls to answer and some buyers simply won’t call, either because they fear a sales pitch or because they expect the price to be high. This will also eliminate buyers who aren’t willing to pay what you’re asking. Most people will expect you to be willing to negotiate somewhat on price, so if that isn’t the case, be sure to include that information. And, in terms of contact information, it’s better to use a cell phone than your home telephone number to help preserve your privacy and safety.

The first thing you should do is look up the “book” value of your car. Kelley’s Blue Book and the NADA Black Book are available for purchase and online, and are the standard tools for determining car value. Be sure to take into consideration the exact condition of your car, including options and mileage. Most books list a base trade-in value and you add or subtract from that amount depending on the condition of your car.

Should you expect that the potential seller will offer you exactly the trade in amount you arrived at using the book value? Of course not – the seller will take other things into consideration as well, most importantly whether or not they think they’ll be able to sell your car for a profit. A lot depends on the type of business they have and the market for your particular car.

For example, if they already have five other cars like yours on the lot and haven’t sold one like it in three months, they’ll be less likely to offer you as much as you expect – or even accept your car in trade at all. On the other hand, if they already know they have a buyer interested in your car and can readily turn it over for a profit, they may offer you more to encourage you to close the deal quickly.

The seller will also consider the sales price of the car you want to buy. Car sellers are in business to make a profit, after all. They’ll be looking at their overall profit on the car purchase, and if they’re making less on one aspect of the sale, they’ll be expecting to make up for it with more profit on another aspect of the sale. Therefore, it’s to your advantage to get the best purchase price for the car you want to buy before you begin negotiating the value for your trade-in.

Another important thing to keep in mind is what the trade-in value of the car means to you. First, it represents a reduction in price on the new car. You must weigh that against the value of continuing to own that car. If you have an older car that has a lower trade-in value, but you know the car to be a reliable source of transportation, the car may be more valuable to you as secondary transportation than as a means for lowering the purchase price of a new car. Or, you may want to sell the car yourself and use the profit you make as part of a down payment on a new car. Only you can determine which of these scenarios is most advantageous to you, so consider your options carefully before heading into the dealership.

First, a word about book value. There are two books – the Kelley Blue Book and the NADA Black Book – that are standard references for determining the value of a car. These books are available for purchase and online, and list a starting trade-in value for the car. From there, you add or subtract to that amount depending on the exact condition of your car. Again, some of these aspects are beyond your control, including options and mileage. You can, of course, affect the cosmetic presentation of the car. Unfortunately, those cosmetic touch-ups affect the value of the car only minimally.

Getting the most money for a trade-in begins before you ever buy the car. There are cars that have better resale value than others, and unless you’re 80 years old and never plan to buy another car, you should definitely consider resale value whenever you purchase a car.

Second, a car that’s well-maintained will bring a better trade-in value than an old, beat-up wreck. Maintain your car according to the manufacturer’s schedule, and keep records of all maintenance and repairs, including oil changes. Keep the car clean and in good condition, which will make it more attractive to future owners.

And, as mentioned before, mileage is something over which you have only limited control. Obviously, if you originally purchased the car to commute to work and you have a lengthy commute, your car will have more miles. If you anticipate putting a lot of miles on your car, you might want to trade it in sooner rather than later, when the mileage is still at an amount that isn’t excessive for the age of the car.

When it comes time to negotiate the value of your car for trade-in, remember that you’re still selling the car – even if you won’t ever see a check for it. Point out all the good features of the car, how well maintained it is, the mileage, and anything else that would make the car attractive to a potential buyer. The dealership will be purchasing your car intending to resell it, and if they feel confident they can make a profit, the more likely they are to offer you good value for your trade-in.

Another thing you should consider is whether you’ll get more value for your car using it as a trade-in or selling it on your own and using any resulting profit as a down payment on a new car. A potential purchaser buying a car from its original owner who can provide maintenance records and personal details about the car may be able to command a better purchase price than a commercial car dealership, which has additional costs to cover.

In short, getting the most money for your trade-in boils down to these essentials – buy a car with a good resale value, maintain it well, trade it in when it still has value, and consider whether it’s worth more as a trade-in or converted into cash.

One of the new incentive programs that’s receiving a considerable amount of press and media attention is the buy-back program, a program which is being offered in several different variations by several manufacturers. These buy-back programs are touted as being the next step in relationship-building between auto manufacturers and buyers – a step that shows that big business cares about you.

Don’t be fooled.

As the old saying goes, if something looks too good to be true, it probably is. These buy-back programs make for good press, but you have to look beyond the press to the actual terms being offered. Don’t let a false sense of “If I can’t make my payment, everything will be just fine” security tempt you into entering into a purchase agreement with ultimately unfavorable terms.

The bottom line is that every business is chiefly concerned about their own bottom lines. When a car manufacturer says they’re willing to “forgive” a certain number of payments if you lose your job, what they’re really saying is that they’ll postpone those payments, adding to the term of your loan – and only in certain cases.

Will this actually help you in the long run? That depends on how long you’re out of work, and what that’s going to do to your interest rate. It also depends on how long you have to be out of work before their “payment forgiveness program” kicks in, and how that will affect the terms of your financing. For example, do you qualify for payment forgiveness if you only receive a cut in pay or hours? And how does receiving unemployment benefits affect the payment forgiveness plan?

In addition, when a car manufacturer says they’re willing to “buy-back” your car if you lose your job, they might actually mean that they’re going to repossess the car they essentially leased to you. Chances are you won’t be keeping the car, and won’t have anything to show for the payments you have made so far. Is this better than having a car repossessed and still owing an amount of money if the car doesn’t sell for what was owed on it? Again, it all depends on the terms of the agreement.

That’s the crucial point – it all depends on the terms of the agreement. There’s no standardization among incentive plans – each one is different and has to be carefully evaluated. It’s up to you – the buyer – to determine whether any incentive is a valuable one for you. You’re the best judge of your financial situation and circumstances, so you’ve got to be sure to read the fine print on any of these offers.

Further, don’t let these incentive plans cloud the other considerations you must make when purchasing a car. For example, don’t be tempted to pay a higher overall price just to get a “buy-back” plan. Getting a lower payment to begin with may mean more to you in the long run in terms of being able to pay for the car than an agreement you may never have to use.

But before you even begin the process, you need to know something about the value of your car. Go to the Blue Book, one of the best known names in car value guides. The Blue Book will give you a target for your price, but you’ll need to know the make, model, year and mileage of your car. It’s important to find out the fair market value of your car so that you don’t under-value it, and so that you can set a price that will be attractive to a potential buyer. Once you’ve determined a fair value for your car, you can move on to the next step.

First, consider whether you’re replacing your car with another one, or if you’re just getting rid of an old one. If you are replacing your car, make any trade-in deal part of your consideration. Different dealers will offer different trade-in rates, so it’s important to check them out as you look at their new car options. Make the trade-in amount a dealer is offering as much a part of your decision as the other factors that go into buying a new car.

If you’re simply trying to get rid of an old car, there’s always the old and venerable method of listing it in the newspaper; but today, look for a newspaper that offers a parallel listing on their online site. Most of the larger news outlets will give you both a print and an online listing for the same price. In either case, be firm on your price and the times you’re available to show the car., as these advertisements can open the door to the public and set you up for calls at all hours of the day and night.

If you want to be a bit more involved, there’s also the auction route. The auction yard is a time-honored way to sell cars, but be warned – you need to know the rules not only of your state, but of the auction house itself. There will be a fee associated with selling this way – usually a percentage of the sale – and you can find that out before you go to the auction. If you’re a novice in these matters, be sure you use a well-known and well-established auction house. If you approach a house that doesn’t want to talk to you and answer your questions, walk away. There are sharks out there that will try to take advantage of you, so if you don’t feel comfortable, go elsewhere.

A big problem with auctions like this is that you have to take the highest bid, even if it’s under the Blue Book Value. Now, it could also be over, but that’s a risk you’ll have to take. One way to lower that risk is try an online auction. There, you can set a minimum price, and if it’s not met, the car isn’t sold. Again, the auction hosting organization or company will take a percentage of the total sale price, but you’ll have much more control over the bidding process. In addition, you’ll find that the customer service on the larger sites is a world away from what you’ll get at a brick and mortar auction house.

Returning your car early

In this approach, you simply take your car back to the dealership ahead of schedule.  And while you can do this, it will probably cost you more then you realize.  You’ll be hit with an early termination fee, along with other penalties, depending on the dealership.  And, because of your lease contract, you’ll still be required to pay all the payments of the lease term on top of the fees and penalties.  Although you won’t have to deal with your car anymore, this could end up costing you thousands!

Trading in your lease

When you talk to your dealership about returning the lease, they might suggest that you trade it in for another one.  If all you need is a lower payment, this option will let you get into a cheaper car without paying the remaining lease payments on your old model.  You’ll probably still be paying all the penalties and fees, although they may just be bundled into the new car’s contract.  If you just need the lower payment, you can also ask the dealership if they can extend the leasing term on your current model, which will make your payments smaller over a longer period of time.

Lease assumption

A more recent option that wasn’t as readily available years ago is lease assumption.  This simply means that another person will be taking on your lease, leaving you free and clear.  But before you get your hopes up, you need to first look at your lease contract and contact the financial agency holding your lease to see if it’s allowed.  There are several dealerships and financial agencies that don’t allow this yet – if that is the case, you’re stuck with one of the first two options.

What you need to know about lease assumptions.

Lease assumptions aren’t totally free – there are still some fees involved, but they’re very low compared to the other options.  They can be charged to either the seller of the lease or the lease assumer, or split between both.  Something else that should be considered is that you, as the original leaseholder, may still hold some liability for the vehicle.  For example, if the lease assumer fails to make a payment, you may be held responsible.  Be sure to check with your dealership and financial agency to see if these terms apply to you.

Finding someone who is willing to buy your lease

Finding a buyer for your lease is much easier then you might think.  Though this area is still new, there are many websites dedicated helping set up lease assumptions.  On these sites, owners of lease contracts will post their lease information – including payment amounts and remaining term length.  Prospective buyers will search these listings for vehicles they’re interested in leasing according to the information posted for the different leases.  Once a buyer and seller have come to an agreement, the employees of the website will begin working on the legal side of the lease assumption.  Just a word of caution – be that lease assumption is for you before you sign up for one of these sites.  Once you sign the papers, it’s final!