Consumer Reports' tips for trading in or selling your car

Whether you're looking to trade in or make a straight sale, Consumer Reports has tips to optimize the price

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Trading-in has long been standard practice for new car buyers. But it's not always the best move.

By swapping your car for a new one at a dealership, "you could be leaving thousands of dollars on the table," said Michael Crossen, manager of auto testing at Consumer Reports. But how can you make sure you're getting the most for your car?

Luckily, Crossen and other experts at CR created a list of tips for sellers looking to offload a used vehicle.

Continue reading to see what they recommend:

Consider time v. money

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If your goal is to get the most money possible, CR said you most likely want to try to sell it privately. Without a middleman, you'll probably come away with most cash.

"It will cost you time and aggravation," though, CR warned.

You'll be responsible for fielding requests, scheduling visits and test drives, and still paying for insurance while you wait to sell.

One more point to consider: "Some states reduce the taxable amount of a new-car purchase by the amount of your trade-in’s value, a benefit that private sellers can’t access," CR said.

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Whether you opt to sell privately or at a dealership, you'll still want to be prepared. That means understanding how to transfer the title — which could require paying off your remaining balance if you still owe money on the car.

One convenience of trading in: dealerships will often handle the logistics for you.

While you're at it, use tools like CR's trade-in estimator and see what online car buyers like Carvana will pay for your vehicle, CR noted. That will inform your discussions with a dealership.

Don't make unnecessary fixes

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It's probably worth deep-cleaning your car before you try to sell it, but CR warns against fixing cosmetic issues or other major problems — in part because dealerships often prefer to do the work themselves.

In the long run, the cost of repairs might not be recouped in the car's sale value.

"Most trade-ins that need work or have high mileage go straight to auction," Crossen said. "The dealers that buy those cars know they’ll have to recondition or repair them, and factor that into the price no matter what work you’ve done."

Be a little coy at the dealership

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If you plan to trade in an old car and buy a new one, CR warned against mentioning that at the dealership from the outset.

"Salespeople can use your trade-in to hide a bad overall deal," it explained. "They might give you top dollar for your vehicle, only to jack up the price of your new car, or vice versa."

Crossen said: "If the dealer won’t match those numbers, take the better offer from CarMax, Carvana, or another retailer."

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