Once you've finished all the steps in this planning and preparation process, then you will actually move on the section entitled, "Sell/Trade Your Vehicle" noted above in the menu. For the purposes of this step right now, you simply want to get an idea of what your vehicle might be worth. For example, your vehicle might be worth a lot less than you think, and this could significantly impact the amount of your loan. Or, you might find yourself upside-down in your loan (meaning you owe more than your vehicle is worth) which will add to the price of your new loan, or should caution you to reconsider whether it's wise to even purchase a new vehicle.

Here are a couple of methods that can help you determine your present vehicle's value:

• Take it to some local dealers and ask what they'd pay for it. This will take a little time, but you'll have the upper hand when you're ready to buy. If you don't like the trade-in offers, simply sell the car to the highest bidder and use the proceeds for your purchase. One of the best dealers for seeing what your car might be worth is CarMax. They will give you a quote in writing, and will buy your car within a certain amount of time at the stated price. At least this gives you negotiating room if you then go to a dealer.
• Look for similar cars online or in the classifieds. Web sites such as Cars.com, Autobytel, and Edmunds will let you search by make, model and year. But keep in mind that these are typically retail prices. If you sell your current vehicle to a dealer you'll be selling at wholesale, so check the resources that many dealers use -- Kelly's Blue Book or NADA guides. Remember, though, that much of a used vehicle's value is based on its condition and mileage, so make sure you account for these items when reviewing comparable prices.