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Cars are one of the few things in life you can sell yourself or trade in when you decide to upgrade. So what's the best way to get rid of your old car? Should you sell it yourself or settle for a dealer trade-in? It depends on what your vehicle has to offer and the payoff you want. Trade-in is prepackaged food. It's not as good as homemade, but it is convenient. Selling it yourself is like a home-cooked meal. It takes more effort. That extra effort, however, can boost your profit.

The case for selling

Selling your old car takes more time and know-how, but you can potentially get more money than when trading it in. That's because you cut out the middleman, the dealer who must spend money to advertise and spruce up your car before he resells it at a profit. The dealer considers those costs before arriving at the amount he'll give you for your old car. A dealer's cut of the profit is what prompts many car owners to opt for self-selling. But remember, you're then going to face many of the same issues that the car dealer would.

If your vehicle is older or in less-than-pristine shape, you'll probably have to get it detailed to make it attractive to buyers. You may even have to spend money on repairs. You also have to consider your time investment in marketing the vehicle and showing it to prospective buyers, which would most likely be on weekends or evenings.

If you do decide to sell, realistically assess your car's marketability. Selling a Toyota, a popular brand, is a lot easier than trying to market a Daewoo.

When your car does sell, you'll have to orchestrate payment. No personal cheques, please, but what about a cashier's cheque from the buyer? How about monthly payments?

You have to decide what type of payment you'll accept, which adds to what some people might call the hassle part (of selling a car.

Another hassle is the paperwork you'll need to complete to ensure that ownership is transferred correctly. Do you have the title? Do you know what LTA requires when a car is sold to another consumer?