Current market conditions have private buyers and dealers paying a premium for used cars; here’s what you need to know about selling a car yourself or trading it in at a dealer.

For most of us, getting a new car means getting rid of an old one—either by selling it to a private party or trading it in at a dealership. Today, we look at the advantages of each and provide tips for getting top dollar for your car.

Selling a used car to a private party

If saving money is your top priority, you’ll get the most cash by selling the car yourself. You’ll also have to do the legwork of your car sale, like listing the car, arranging to meet with buyers, and handling the sales transaction.

If selling the car to a private party is your preference, here are some resources to help guide you:

• Car values from NADA Guides and Kelley Blue Book
• Selling and listing tips from com and BestRide.com
• State Farm’s safety tips, including how to avoid fraud
• Seller’s responsibilities from the Michigan Secretary of State
• What to do if you can’t find the vehicle title

Trading in your car

For ease of transaction, a trade-in is sometimes the way to go. A trade-in is safe and easy, with the dealer handling all the documentation.

Historically, trading in a car at a dealer meant getting a lower price than you’d get with a private sale. With the COVID-19 pandemic, however, dealers have been paying higher prices for used cars.

David Gould, general sales manager at Ziegler Ford Plainwell, said, “We’re paying up to $3,000 more on trade-in values right now.”

Trade-in and private sale prices are closer than ever before because of multiple factors. One reason is an increase in demand for used cars as people avoid public transportation. Another is the shortage of semiconductor chips used in new vehicles, which has slowed production of new cars. High demand and low supply have resulted in higher trade-in values as dealers seek to keep their inventory replenished.

“If you’re thinking of selling, it’s worth having a conversation with us before posting your car,” David said.

Clean it up

“The cleaner the car, the better it’s maintained, the higher the value,” David also said.

Whether you decide to sell a car yourself or trade it in, clean it up or have it detailed inside and out so it’s more attractive to buyers.

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