The market for selling used vehicles is very competitive and getting the best deal can be a challenging, yet rewarding experience. So do your homework and be prepared, because educated sellers are usually the most successful ones.

There are many questions that you may have to ask yourself when time comes to replace your old ride. Do I want to trade it it? Do I want to sell myself or should I just donate it to charity? If you have seen those cars parked in local mall parking lot with a "for sale" sticker in the window, you know that selling a used car is not the easiest thing.

Even though scope of this article is to deal with selling a used vehicle. Let's talk about trade-in for a second. If you're replacing your old car with a new one, trade-in might be one of the option on the table. Trade-in might not get you the best price but it will guarantee that car will be gone. Dealer will have to take old car in order to sell their new cars. Sometimes car dealers run these outrageous advertisements about giving you $3,000 - $5,000 in trade-in allowances for any old car, even a total junk. These advertisements might look very tempting, but there is always a catch. First of all, these car dealers usually sell cars that are not really popular make and models. Second, these cars have a huge bargaining margin from MSRP to actual sale price. For example, GM sells some cars with window stickers over $28,000, but you could easily have one of these for as little as $18,000.

So, if they give you $5,000 in trade in allowance, they usually sell you one of these cars for around $23,000 and you probably wouldn't be able to bargain much further since you already got such a sweet deal on your junk trade-in. So who is the loser in the end? Well, you already know the answer. So piece of advice, be aware of these offers and if something seems too good to be true, it usually is.

Let's say that you're not comfortable with the idea of selling your car yourself and trade-in makes more sense to you. You still need to know couple of things to get best value out of a trade-in.

Negotiate new car first - Most dealers ask up front if you have a trade-in. You'll have to tell them if you do, but remember, don't allow this to have a negative impact on your negotiation on the new car price. Tell them you have a trade-in but you would like to talk about it only after you agree on a purchase price for the new car. If they don't agree, walk away and look elsewhere.

Condition your trade-in - There is no reason to treat a car like junk if you're going to trade it it. Remember, most of the time dealer will quote you a trade-in price by just walking around your old vehicle. these folks do it for living and if your old car doesn't look good, you'll lose big on trade-in. So give it a good wash and fix things that are not expensive. Know in advance how much you should expect to get for it and stand firm.

If you have maintained your old car well, and have all the maintenance records, it probably will fetch you lot more to sell if yourself. Here are couple of important things to remember if you would like to sell it yourself.

Order a carfax report - It will probably cost you $10 but you'll have something very convincing to show to your potential customers. A potential customer is more likely to buy from you if he/she can trust you. Providing carfax and old maintenance records add that element of trust and increase your credibility.

Put a "for sale" sticker in your window and drive it daily - If you use it for commuting to work, you may have a co-worker who might be interested. A co-worker is also a lot easier and reliable customer since you know them and they know you. Go to local car club/car show and make it clear that you're in the market to sell your car.

Use Online tools - Internet is a powerful medium to reach far beyond your local boundaries. It is even more valuable if you have a rare or very popular vehicle for sale. Advertise at online web sites such as autotrader.com, cars.com and potentially ebay. It will cost you money to put it up there but if it can fetch you $1,000 - $2,000 extra, that money is well spent. You can also use free services such as craigslist.com but they usually have a message board format and you'll have to keep posting it every couple of days to keep it visible.

Stay Current on Schedule Maintenance - Too many times people ignore schedule maintenance since car is for sale. Keep the car current on oil change and give it a good cleaning inside and out. Spend some time polishing with a good car wax(Zaino is great) and run through the inside with a vacuum. Clean the armrests, the ashtrays, all the nooks and crannies, and even the trunk. Stale French fries lodged between the seat cushions might not be a fair indicator of the car's condition - but it's quite a turnoff nonetheless.

Get all Your Paperwork in Order - If you have maintained your vehicle well, this could be your best selling point. If you don't provide original, make photocopies and make them available to potential buyers. If someone wants your car to be checked out by a mechanic, don't refuse. If you have maintained it well, there is no reason to be sneaky. Make sure you have a copy of vehicle's title available to show to potential buyers. Take some good quality digital pictures and e-mail them to buyers who might not be from your local area and are unable to inspect the vehicle before actually buying it.

Be Prompt and Punctual - Used car market is very competitive and fast moving so answer e-mails and phone calls promptly. Do not miss out on a sale because of your laziness. If someone set up appointment for test drive, it's your job to make sure you respect and value their schedule and time.

Protect Yourself - If you're meeting someone for test drive, make sure you meet them either at your place or at a public place. Public place should be your first choice since you don't want strangers to show up at your house. Also, It is not a bad idea if you bring along a friend or two. Remember, there is safety in numbers. Make sure you demand drivers license if someone is test driving your car. If they don't have one or don't show you one, there is no reason they should be driving.

Get Paid - If they like the car and agree to a purchase, request cash or cashier's check. Don't accept a payment plan or personal check. Don't agree to accompany the buyer to "get the money." If the buyer is inclined to buy the vehicle an agreement can be struck to return to the same location at another date to make the exchange. If it is a cashier check, make sure you call the bank to verify it. Also, create a bill of sale. Don't just sign over your title and hand over. Bill of sale is a legal document that proves that you sold your vehicle to such and such individual.