My understanding is that CarMax offers some of the best prices for a used car. I think the only way that you’ll do better is if you list it privately. You’ll have to decide if the difference in price is worth the hassle of listing it, showing it, and going through a private sale.

That said, if you’re buying a new car and don’t want to sell the old one privately, trading it in at the dealership where you’re buying the new car might work out best mathematically. That’s because the sale price, which the car is taxed at, is reduced by the trade-in value of the car that you’re trading in.

So if you buy a car for $30,000, trade in at CarMax for $5000, you’ll pay $30k x 7% ($2100) in taxes. But if the dealership gives you a comparable trade in value for the new car, you’ll pay $25k x 7% ($1750) in taxes. So unless carmax offers $350 more in this hypothetical example, you’ll ultimately end up better rolling in the trade value of the old car into the new car’s purchase.