Why should I sell my car instead of trading it in?

It's simple—to boost your profit. Sell it yourself, and you get a higher value out of your car.

Depending on the age and condition of your car, you can pocket an extra $1,000 to $2,000 or more. If you have a late-model vehicle, you stand to make much more. Just think of it as cutting the middle man out. If you trade your car in, the dealer has to pay to clean it, advertise it and sell it while making a comfortable profit. Your lower trade-in reflects that.

Besides, with today's online resources, selling your car is easier than ever. Find out all you need to know to put your car up for sale, and then list it at a less expensive price than traditional printed classified listings. Plus, you reach more buyers in your area—and across the country.

What are my first steps?

Selling your car yourself can be rewarding, especially with a little guidance. We've come up with a few tips to make the experience easier and to help you get the best price for your car.

Set a competitive price
A good place to start is determining the market value of your car. Check out Edmunds.com to find out what your car is worth. You'll want to price competitively in your local market-look at our online ads in your area to see what used cars similar to yours are being sold for.

If you're open to negotiation, determine the least amount you will accept. Based on that amount, you may want to create some cushion in your price—$500 is a good minimum.

Remember, buyers are looking at the same online pricing guides, so if your price is close to or lower than the price they found, your car could be that much more appealing.

Once you set your price, consider using the proper ad lingo to make your point:

Inserting "or best offer" (OBO) or "asking price" signals you'll consider an offer lower than the stated price. You may get more responses.

Stating your price is "firm" signals that you're sticking to your price.

Get your car ready
Appearance is everything. That means you should thoroughly clean your car, inside and out. And consider taking care of any minor maintenance issues.

Here's a list of things you can do to improve your car's appearance:

• Wash, wax and vacuum your car.
• Wipe down the dashboard and other surfaces.
• Gloss up the tires and polish the wheels.
• Clean all glass inside and out, including mirrors.
• Clean out any junk from inside your car and the trunk.
• Replace any burnt lights or fuses.
• Top off the fluids.

Gather your car's records
Smart car shoppers want to know how well maintained your vehicle is and will ask for maintenance records. A presentable maintenance log with all of your receipts, especially oil changes, can be a powerful selling tool.

Consider collecting the receipts you have and creating a maintenance log. If you know you had something done but can't find the receipt, log it anyway. Warranty receipts are especially important. If you've recently replaced your tires or battery, present the warranty to the buyer.

Purchase a vehicle history report
You can put buyers at ease by showing a copy of your car's vehicle history report.

One of the biggest fears of used-car buyers is unwittingly buying a car that has been in a wreck. A vehicle history report reveals if a car was ever wrecked, whether the odometer was rolled back and other costly problems.

Presenting your maintenance records and a clean vehicle history report instills confidence in buyers—it could make the sale!

How do I advertise my car?
Your best bet is to place an online ad. Think about it this way: how many newspaper readers are looking to buy a car? Compare that to the number of people visiting auto websites like this one looking to buy a car now.

You'll also get more sophisticated options, like editing tools and more space to show off your car.

Here are some surefire bets to bring you more responses.

Post quality photos
Although photos are not required for listing your car online, they are a key selling tool. You have a far greater chance of buyers clicking on your Search Results Listing if you have photos. In fact, 85% of buyers look for listings with photos in their initial search.

You don't need to have a digital camera to post photos. Just take your traditional film to your local photo-processing lab and ask for a photo CD. You can easily upload photos from the CD to your ad. Or, you can turn your prints into digital pictures with a scanner.

Before you point and shoot, remember these guidelines:

• Photograph your car in daylight.
• Avoid reflections and shadows from the sun and trees.
• Photograph your car at a front-side angle to achieve a good view of the entire car.
• Park your car against a flattering backdrop.
• Make sure your car is clean and neat in appearance.

If you post multiple photos, photograph the interior and any special features about your car, such as specialty tires and wheels.

Give details buyers will respond to
Another benefit of advertising online is providing a complete description of your car. You get to give buyers those extra details that grab their attention.

In your HRAutoNetwork.com ad, you will list your car's basic details and options installed. With that important information already out of the way, you can focus on making your description enticing.

Keep in mind the first 150 characters of your description will show on your Search Results Listing. Put your most important details first, so buyers see them right away.

Consider giving some of the following details:

Appeal to a buyer's lifestyle. Ex. Van—"great family car," economy car—"excellent gas mileage makes it a great commuter car," truck—"a dependable work truck."

Use key phrases that typically signal you've taken care of your car, like "one owner," "kept in garage" and "maintenance records available." But do be honest!

Mention any non-standard modifications and improvements, such as stereo, speakers and specialty wheels.

List any recent replacements, like new tires or battery.

Be prepared to field inquiries
Once you place your ad, be ready to answer questions. Keep a list of basic facts about your car near the phone and computer. Print out the online sources that show your car's market value.

Buyers are making a big decision, so try to answer every question honestly and openly. You'll save yourself time instead of making unnecessary appointments.

Make appointments for a specific time, rather than allowing a buyer to show "sometime after work." It increases the chances of the buyer making it, and it doesn't waste your time. If you feel uncomfortable with a buyer coming to your house, arrange to meet in a populated, well-lit area.

How do I close the deal?

You've done your homework. Now it's time to sell your car. With a little preparation and patience, you should do just fine.

Show your car to interested buyers

• Once you make an appointment, a buyer will most likely want to take your car for a spin.
• Before the test-drive, remember to:
• Ask to see a valid driver's license and proof of insurance.
• Let the buyer drive, but you navigate.
• Have a planned route in mind that allows the buyer to experience different driving conditions.

If a buyer is very interested and wants you to hold the car, ask for a deposit and specify that it's only for a certain amount of time. Also, some buyers may want to have the car inspected by their mechanic. This is a reasonable request, but it's up to you how you want to handle it.

Negotiate a fair price
By now, you know what your car is worth, and you know what you're willing to accept. Prepare yourself with possible responses when a buyer begins to negotiate. For example:

If a buyer mentions a scratch or ding, say it's normal wear and tear and that it's accounted for in the depreciated market value.

If a buyer makes an offer lower than your asking price, counter offer. Never seem too eager to lower your price. And don't budge beyond your minimum.

If a buyer shows you a mechanic's receipt for repairs needed on your car, take a look at the repairs. If they're warranted, consider reducing the price based on the amount needed for the repairs. If you advertised that your car is being sold "as is," then simply refer to your ad.

Finalize the sale
Once you settle on a price, accept only cash or a cashier's check before you sign over the title. And make sure the check has cleared at the issuing bank. Be suspicious of any buyers who offer a complicated payment arrangement that involves overpayment with a refund. In general, be aware of the different signs of fraud.

You should have a bill of sale ready for both parties. A bill of sale is a sales receipt that shows transfer of ownership to the buyer and contains both parties' contact information, details about the car, the agreed upon sell price and the odometer reading. To find a bill of sale, your state motor vehicle website should offer a detailed form. If not, try an office supply store for a generic form that you can add to if needed.

Also, check with your state motor vehicle website to find out what the requirements are to transfer the title to the new owner. Generally, you will have to sign and date the title before turning it over to the buyer. Notifying your local motor vehicle office of the transaction and ensuring the title is correctly transferred will prevent you from being liable for any accidents.

If you still owe money on the car and a lending institution is holding the title, you can finish the sale with the buyer at the offices of the lender. Once you have the money and the loan has been paid off, sign the title to the buyer.

If the bank is out of state, you can go with the buyer to the motor vehicle office and get a temporary operating permit based on the bill of sale. Once you pay off the balance of the loan with the money from your car sale, you'll receive the title. Sign it over to the new owner and the transaction is complete.

One last thing—don't forget to cancel or transfer your insurance policy to your new car.