Welcome to the best free guide for selling and buying new cars, used cars and avoiding scams. You'll laugh, you'll cry, then go sell and buy a car. This 100% FREE site is about the truth, but few people want you to know the truth on selling and buying vehicles. What people Have to Say About Sellmyauto4free.com: "I LOVE this service, LOVE IT! and It's free-– what’s the catch… I still can’t find one. - Carl D.    Sacramento, CA

Just registered yesterday and had three e-mails and two phone calls from buyers near my area.-Barb F.    Dallas, TX "I'm so impressed with you guys, I can't thank you enough for all the tips"-Joseph C.    Albany, NY "Everything about this website was fantastic. I would definitely recommend sellmyauto4free to anyone I know!" - Not every website is out to make a quick buck off those trying to trade a car. - Katherine H.    Miami, FL %USERNAME%

Car Buying Tips Auto Financing On The Web New Car Price Quotes Shopping Around How Much Should I Offer Negotiating Tips Dealer Tricks To Watch Out For Close The Deal Avoid Dealer Extra's Sell Your Used Car Yourself Your Used Car's Values Getting The Most Money Used Car Seller's Check Preparing Your Used Cars Used Car Selling Tip's Showing Your Used Car Mechanic Checks Negotiating the Sale Finalize The Sale Getting Paid

How much should I offer the dealer? To calculate how much to offer the dealer, you must determine how much they paid for the car and offer them a fair profit. The road to saving cash on your car is paved not by chiseling off MSRP, it's by making an informed offer over dealer's cost based on the car's value. You must be patient and research first, don't rush to buy without a game plan. Ask to see the factory invoice for the car. DEALER COST IS NOT THE FACTORY INVOICE PRICE! The dealer's net cost of the car is usually much less. How To Read A Factory Invoice The factory invoice lists the base model of the car, and all option packages, floor mats, body trims, etc. It also lists destination charge, holdback and dealer flooring assistance. But the dealer gets the holdback and floor plan back from the factory after they sell the car, so have them remove it. Destination charge is not refundable, we pay the dealer, the dealer pays the factory. I have 2 examples below to get you familiar with reading invoices. One is for a cow, the other is an actual invoice I have for a 1998 Mitsubishi Eclipse. Note how the fees add up, and Mitsubishi loves to charge YOU for holdback and flooring assistance, double collecting. Don't believe the "invoice" the dealer tears off the printer it's no invoice. The invoice is a copy of the actual invoice with the car maker's logo on it and the dealer's address for delivery. Don't confuse the "invoice" with the white MSRP window sticker! How much did the dealer really pay for that car? This is a well guarded secret. They'll pull out the "factory invoice" and offer "$1 over invoice". They are not required to show you the invoice. There are hidden factory incentives built into this "invoice price" that reduce their cost. If they are quick to show you the invoice, you know they are making money, and can settle for even less. This info is your most powerful ammo in negotiating with the dealer. They'll convince you that you can afford the car at MSRP, diverting attention away from "is it worth this price". Do the same to them. Tell them how much profit they'll make with your offer. You've just turned the tables on them. Factory to Dealer Incentives: From the factory to the dealer to stimulate sales. Incentives are common at the end of a model year to allow the dealer to reduce the price of the car to sell it, and still make a profit. Many dealers don't lower the price, more icing on their cake. Your Offer: 5% Over Dealer's Actual Cost That's 5% over dealer's cost, not over invoice price. They'll gladly take 5% profit, dealers survive on 3%. I've verified this with salesmen. Grocery stores earn 1-3% profit. This 5% profit pays dealer overhead and sales commissions. Dealer expenses include rent, utilities, salaries, loan interest, etc. If they use cost controls, and low rent, their cost of sales is less. Many dealers charge ad and dealer prep fees to make up for costs. They get incentives if they meet sales goals, which offsets expenses. They make a killing on buyers not as informed as you and I. Tell them they'll make up for it on the suckers. Explain the big picture, that they'll also profit by servicing your car. It's important to know what happens on the dealer's end. One dealer told me they averaged $198 PRE-tax profit on new cars, after $140,000 in monthly expenses from selling 50-100 cars a month. I'm not saying don't give them profit. They have a right to profit and be wealthy. Just don't give them too much. While you are feeling sorry for them, paying MSRP, being broke from car payments, the dealer moves into a $4 million house on the beach. They'll profit plenty from you, especially if you trade in a car. They make profits from trade-ins, credit insurance, finance, parts, extended warranties, rust proofing, body work. Once they accept your offer, add destination charge, taxes, and other fees on top. DO NOT include destination charges in your calculation of 5% over dealer cost offer. You don't want to give them 5% profit of a fee! Add the destination charge after you calculate 5% over the dealer's cost. Dealer's Actual Cost = ( Invoice Price - Factory To Dealer Incentives - Factory Holdback) Don't Forget Options! Expect to pay $3000-$10000 for "option packages". Don't just price the base model, that's a big oversight. No car on a dealer lot is a base car. This is why you shop dealers first to see what typical option configurations are out there. Bring pricing info and check off all the options to study later at home. Dealers usually have the same cars, because the factory turns on the machine and cookie cuts batches of the same configuration, usually loaded with options to maximize their profit, then moves on to the next model. Your Offer = ( Dealer's Actual Cost + 5% ) Don't forget to subtract the consumer rebate if there is one. It's possible that your 5% offer of fair dealer profit could be less than invoice price. This can happen with huge factory to dealer incentives. These incentives could be thousands, and most buyers are unaware of them. A dealer could show you an invoice of $15000 for a car with an MSRP of $17000. But supposing there's a factory incentive to the dealer of $3000 to unload it. Now the dealer's actual cost is $12000. If you were foolish enough to pay $17000 for the car, the dealer just made a profit of $5000. Examples Of Calculating An Offer To The Dealer: Example #1: You want to buy a 2001 Toyota Camry LE V6. You surf on-line and find the base invoice price is $19,922. Base MSRP is $22,385. The dealer offers to sell you the Camry $22,000 and shows you the invoice. But you discovered a $500 factory to dealer incentive exists, and a 2% holdback of the MSRP ($447). Invoice = $19,922 MSRP is $22,385 Destination= $455 Now using my formula above, the dealer's actual cost is: Dealer's Actual Cost: $19,922 (invoice price) - $500 (incentive) - $447 (holdback) = $18,975, far from invoice. Now figure 5% profit for your offer. 5% of $18,975 = $949. Now your offer is $18,975 + $949 + $455 Destination Charge = $20,379. This is much less than the price they offered you, and cried on your shoulder you're stealing food from his kids. Had you accepted it, he would have made $3410 profit! Example #2: You want a 1997 Toyota Corolla CE. the invoice price is $13853, and MSRP is $15143. The dealer offers $13853 invoice if you're lucky. He probably gave you this price "including the rebate" to make it appear you are getting the car for $900 off. Most dealers ads say "price includes rebate", or "dealer retains all rebates". No $900 rebate. also shows a $900 dealer incentive and a 2% holdback of $302. And lucky you, there's also a $900 customer rebate from the factory. Now using my formula above, the dealer's actual cost is: Dealer's Actual Cost: $13853 (invoice price) - $900 (incentive) - $302 (holdback) = $12651. A far cry from his invoice offer . Now add 5% profit for your offer. 5% of $12651 = $632. Now your offer is $12651 + $632 = $13283. Have the $900 rebate mailed factory to you in 6 weeks, to make sure you are credited and the dealer can't steal it. The car is actually costing you $12383 once you get the rebate check. Remember, this is only an illustration. The actual Corolla you buy will have factory option packages that increase the dealer's profit. Your offer is less than the dealer's "invoice price" that they cried on your shoulder that your are stealing food from his kids. Had you accepted his $13853 offer, he would have made $1470 profit (don't forget, he's stealing your rebate). If you were foolish enough to pay MSRP, he would have profited $2760!! So who was stealing food from whose kids?

Think twice about trading in your used car at the dealer!
Dealer's never give you fair market value for your car. They offer wholesale value, which is much less. This is so they can sell your trade-in and make a profit. The wholesale value is quoted in Edmunds, Kelly Blue Book, or most of the other internet car pricing sites. The problem is, many dealers like to low ball the wholesale figure too.

Used car pricing sites list "Market Value" and "Wholesale" or "Trade-In" values, which are much less. Dealers make it appear they are giving you a lot for your trade-in, but don't be fooled. They are shuffling dollars around, charging you MSRP, or higher interest, or piling on wasted extras like rust proofing, paint sealant, and extended warranties. They cry on your shoulder telling you they won't get much for your trade-in. They'll offer you $1500- $4500 less than market value. They sell your trade-in for $1500-$2500 over their cost. This includes labor to repair the car, and profit. If they don't repair the car, it's all profit.

As you cry over their "loss", here's how they profit from you and the next owner of your trade-in: They put your trade-in on the used lot a week later for $1500 more than fair market value, and stick a "No Haggle" price tag on the windshield. Now, they'll profit $3000 on your trade-in (less their cost to repair it) thanks to the $1500 contribution made by both you and the future buyer.

Always treat your purchase of a car and trade-in as 2 separate deals. A trade-in gives the dealer 2 variables to play with. By paying cash with no trade-in, everything is on the table, the dealer has no where to run, nowhere to hide. He can't play cash flow shell games, giving you "A good deal" on your trade-in, but fleecing you in the back end of the deal with extras, or meaningless fees. Tell them you are not trading in your car then negotiate a selling price for the new car. Now they have no "shells" to use in the cash flow shell game. After they agree on the new car selling price, tell them you want to trade in and how much you want. They will either accept it or not, but at least you'll know how low they will really go on the selling price of the new car.

Your Trade-in is worth a fixed amount no matter what you buy, whether you finance through them, whether you buy any extended warranties or optional extras, or anything. Don't let them condition you into thinking otherwise.

Even with "book" prices, it's difficult to determine the value of your trade-in, as each car is different. Mileage, AC, paint, and wear and tear are the biggest issues. But usually you think you got a great deal and the dealer is the one who got a great deal. You "squeezed" another $500 out of the dealer for your trade in. "Trade in buyers" concentrate on the trade in, and fall asleep during the rest of the deal blinded by the cash flow shell game the dealer played on them. The dealer just got their money on the back end, not the front. People brag about getting more than what they asked for their trade in, chuckling that they screwed the dealer. Poor saps. By selling the car yourself, you have eliminated method #1 for the dealer to coax money from you. Even if it's more trouble, it may be better to sell on your own. Most decent dealers will even tell you that you'll get much more selling it yourself. Combine a trade-in with a purchase, and you'll lose every time. Just give them your trade-in and say "here you go, have another $1500 of my money". Besides, don't you want to keep as much money as possible out of their pockets and in yours? Don't feel guilty either, they are trying to keep money out of your pocket . Now you saved 33% of the money you could have lost. You can use that money toward a down payment if you can get transportation until you buy a car. Or, sell the car after you buy the new car and send in the cash as a large "principal" payment. Verify your bank allows you to make extra principal payments.

Trade-in Tax Analysis
Don't nix the idea of a trade-in without analyzing your situation. There is a tax advantage to trade-ins. You pay sales tax on the difference between the cost of the new car and the trade-in. If you are buying a $25,000 car and your trade-in is worth $10,000, in Florida you'll pay 6% tax on the difference. Total cash outlay is ($25,000 - $10,000) + tax on difference = $15,000 + $900 in tax = $15,900. But supposing you got $12000 for your trade-in selling it yourself through the newspaper. Now the total cash outlay is $25,000 + tax = $25,000 + $1500 in tax = $26,500. When you sell your old car and receive the $12000, your effective cash outlay will now be $26,500 - $12,000 = $14,500. You can see in this case that you saved $1500 selling the old car yourself. This was only possible because you were able to sell the car for $2000 more than the dealer would give you for it. If you can't get more than the dealer will offer you, then you are better off trading in the car, because you'll benefit by the savings in sales tax.

"Appraising" your car at the dealership
And I do use the term loosely. They put on a show when evaluating your car. The "appraiser" will rub his fingers over every dent and dimple like he's having foreplay with your trade-in. They try to tell you that your car has too many miles when it does not. People who do not know they are all right on their mileage are fooled by this. They do this to panic you, setting you up for a low ball quote. So why does he want the trade-in so bad then? Tell them it's a used car, with normal wear for a car of that age. That's why you're not asking $20000 for it. But they'll offer you what they want and that's it. Tell them you are not trading in and watch them try to convince you to trade in. Why would they work so hard to convince you to trade in a car "they'll lose money on"? Car dealers go to auctions to sell acquired trade-ins and hunt for fresh used cars. They use auctions as a reference to figure out how much to offer you, based on market conditions. One other weapon the dealer has is your maintenance history. If you are trading in a GM at a GM dealership, they can get on the network and pull up your maintenance records. Remember that brake job and transmission motor mount they suggested you get when you brought it in 2 months ago? All those remarks are entered into the network. Any dealer can get that data and use it against you: "Sorry, I noticed your car is in need of a transmission motor mount and brakes. That's going to reduce what we can give you for your trade-in."

Beware of TV commercials from dealers claiming they'll pay you "Top Dollar" for your trade-in. They won't pay you any more than any other dealer will. They use psychology to let your brain trick you into thinking you'll strike it rich with your trade-in. Your definition of top dollar is different from theirs. Your definition of top dollar is fair market value, but their definition is wholesale value. You'll never get fair market it's the laws of physics, they deserve to profit. You can't get blood from a stone, and you'll never make money on a trade-in selling it to a dealer. They may offer more than market value, and you're celebrating in the end zone so you failed to see they charged you full MSRP for the car, or added wasted extras. Those who do not know the rules of this game are in for a shock when the dealer makes their offer. You'll complain it's too low, and that their ad said "Top Dollar", but they'll say "This is top dollar. This is as high as we can go. We have to resell it too, you know. I don't think we'll even make a cent on it". Do you really think these dealers are spending thousands of dollars on TV commercials to give you their money for your used car? No, the only reason they advertise is because buying and reselling decent used cars is very profitable. They reel you in with their ads and then offer you "Top Dollar".

Are You Upside down On Your Loan?
Here is another reason I don't like the thought of people trading in cars at a dealer. Too many people are upside down on their current loans. If you are upside down on your current car loan you are at a financial disadvantage, and you should not be buying a new car. A person who is upside-down on a loan and looking for a new car is a victim.

Put down 20% when you buy a new car. You should payoff your current loan until the car is worth more than what you owe on it. Payoff your balance BEFORE you trade in your car. Any loan balance due on a trade-in is must be paid by you. The dealer finances the amount you still owe into the new loan, even though their ads say "We'll pay off your current loan, no matter how much you owe". How the dealer hides these dollars will not relieve you of your obligation to that balance. Don't finance it into your new purchase/lease as this increases your payment. Leasing is supposed to conserve initial cash outlay, so negotiate no down payment. Put your money in a decent mutual fund instead. You want to enter a lease with little or no cash outlay, and just hop right into low monthly payments.

Buying & selling vehicles on Sellmyauto4free.com is as simple as 1,2,3. Here's how it works:

Select a Category Below! you can also: Search by Keywords. Search by your zip code Enter the maximum amount of miles you want to search from.   Buy It Now You won't have to wait for the auction to end - purchase your item instantly.   Place a Bid Enter the maximum amount you want to spend; sellmyauto4free bids for you, up to the limit set by you.   Sell your Vehicle Your Own Customized ad Nationwide Advertising Ad Runs UNTIL SOLD! 4 Full Color Photos Unlimited Ad Text Description It's easy and fast and free! Register today and get started...