Tips on Buying Cars: Trading down


Question
In June I traded my 2002 Toyota Avalon XL and paid cash for  a 2009 Avalon XLS, in anticipation of a situation that did not develop. I find that I don't like the car nearly as well as I did my old one (it's too big, too hard to shift, I don't like leather seats, too many functions that I will never use etc.)

This is what I am thinking about doing: Sell or trade the XLS, with 5000 miles, (My zip is 73013 if that helps.) The KBB trade in value value is Approx $29K. I want a stripped down 2009 Avalon XL, cloth seats and  as few extras as possible. The KBB MSRP is approx $29K. I bought my last two AValons at 75% of the sticker price before trade in. that comes out to around $21,700, target price. (I realize that it will be more because KBB MSRB is always a little low and most cars have a couple of thousand dollars worth of "extras".)

Is this realistic? would I be better off trading the car at the Toyota dealer or selling it outright to a place like carmax or diffee motors which is a local company that has been in business for 50 years, "buying nice clean cars" as they say in their ads.
If I can talk the Toyota dealer into giving me a reasonable trade in, How do I trade down? Do they just hand over the car and a check for the difference? Seems unlikely!

Thanks, Jo

Answer
Jo:Thanks for the question.First,there are advantages to trade a car.There are tax credits based on your tax rate(ie;$10,000 car at 6.25% will be savings of $625.00 off of the new car.)Second,the most important fact: is the Avalon the only car you like?If you read consumer reports,there are several other makes there cheaper and more reliable than Toyota.(Did you know that Toyota has more recalls than GM or Ford?)And most important don't emotions take you away from making a wise decision.With careful research,you will pick the car you really want! Good Luck!