When it comes to off-loading a car, be sure to weigh the pros and cons of trading vs. selling.

Alright, so you've decided that it's time to part ways with your car and bring in something new (or new to you). There's more than one way to have your wheels taken off your hands, but it often boils down to either trading it in or putting up an ad on Craigslist. Before you choose either option, give this guide a look to see which method is right for you.

Trading in Your Car

This is the easiest option as you just hand over the auto to the dealership - with no more loan or insurance payments. The downside is that you will indeed get less money in return. Many trade-ins receive just the wholesale value of the car, which is going to be far less than what you paid for it. Many car dealerships will cut you a check or let you trade your vehicle in exchange for a store credit applied to the price of a different car. For example, if you trade in your old car and receive an $8,000 credit against the price of a $15,000 car, your out-of-pocket cost is only $7,000. As an added bonus, Colorado has a trade-in tax exemption, which means the taxable price of your new vehicle will be considered to be $7,000, as the value of your trade-in is not subject to sales tax, thereby saving you more money. Another advantage of trading in is that you don't have to worry about being contacted if the vehicle breaks down afterwards - it is completely off your hands.

Selling Your Car

You'll make more money selling your car, but this requires some time-consuming legwork. Expect to spend weekends placing ads, vetting strangers, meeting prospective buyers for test drives, and fielding a lot of phone calls. Then, there's the case of negotiating with a buyer who insists on haggling down your asking price. If you're willing to put in the time and energy while standing your ground on a price, you'll earn more than you would had you traded it in. 

Have any other insights in selling or trading in a car? Let us know in the comments!