Are you thinking about passing up the dealership’s trade-in offer and selling your car on your own?
Before you get ready to post that “For Sale” sign in your rear window, there are some things you should know before you opt to sell your car privately. Let’s discuss some warnings and tips to ensure your vehicle sale goes as smoothly as possible!
Gather the Right Paperwork
There are many ways to sell a vehicle. You can sell a car online, you can sell it to a dealership in person, or you can even give a friend a great deal on your used car. But with all of these options, one thing remains the same—you’ve got to have the right paperwork and processes in place if you want to pass off vehicle ownership in compliance with state and federal regulations. This means gathering the right paperwork and information.
Here are some things you’ll need to do before you sell your vehicle:
- Find your vehicle title.
- Ask the DMV what paperwork you need to transfer the vehicle title.
- Request a vehicle history report.
- Square up with your lender to make sure you don’t have any outstanding balances on your vehicle loan.
Check the Car Value, Name Your Price
Once you’ve made sure you can actually sell your vehicle, it’s time to see what your vehicle’s actually worth. You can do this by checking the value of your car online. The value will depend on the vehicle make, model, year, mileage, and overall condition. If your vehicle has cosmetic damage or easy fixes, it might pay off to make these repairs before putting it on the market.
P.S. get a car wash; your potential buyers will thank you!
After you’ve got an idea of what your vehicle’s worth, you can come up with an appropriate price. It’s best to stay close within the range of the fair market price, but you can also consider your financial needs too.
Thanks to the internet, there are plenty of ways to advertise your vehicle that’s for sale. Whether you opt to use Craigslist, Facebook, OfferUp or rely on your trusty “For Sale” sign, you’ll want to make sure your ads are compelling.
Here are some guidelines to help you create a persuasive ad for your vehicle:
- Give details: Buyers will be less likely to call if you don’t include essential information like mileage, price, MPG, and condition. Be a step ahead of your audience and make sure you provide these details for them. If you’re comfortable going lower on price, simply mention in your ad that the price is negotiable.
- Take pictures: You know what they say, “a picture speaks a thousand words.” And it’s true, especially in advertising! Be sure to include high-quality photos in your ad that capture every angle.
- Offer a test-drive: Words really can’t stack up to actually experiencing the look and feel of a car in person. Offer serious buyers the opportunity to test-drive the car before they make a purchase. Just make sure to arrange the test drive in a safe, public place.
Come up with some screening questions
If you’re trying to sell your car quickly, you won’t want to waste your time with unreliable sellers that might not follow through. Avoid wasting time with improbable buyers by having a few screening questions and caveats at the ready.
- What’s your name? Ask for their full name before you set up a test drive. You’ll need this information to make the sale anyway, so it shouldn’t come as a surprise for the buyer. And if it does, you might consider this one a red flag.
- What are you looking for in your next vehicle? This question will help you manage expectations and save time meeting with buyers that are looking for something your car doesn’t have.
- When can you test-drive? If a potential buyer wants to buy your car without looking at it, chances are, this deal is too good to be true.
- What’s your price? If your price is negotiable, be sure that the buyer is able to name a reasonable price, so you’re not faced with an ultra-low offer on the day they test-drive.
Seal the deal
Once you’ve found the right buyer, you’re ready to sign away that clunker in favor of an upgrade! But first, you’ll have to agree on a price, sign off the title, give the buyer a bill of sale, and file a release of liability form. These documents show that the car is no longer in your possession as of the signing date.
What are the other options?
Selling your car privately can be a long process, having to take photos, list your vehicle, and deal with the inevitable time-wasters. You will find in most cases. Buyers will try to knock down your asking price too, meaning you can be left with less money than you initially wanted. There are alternatives to selling your car privately, including:
- Selling your car to a dealership: while you may receive slightly less than selling privately, selling to trade could be a viable option if you want a quick sale.
- Furthermore, if you have a car that is in demand, you could demand a higher price for a car the dealer wants on the forecourt. Before visiting a dealer, you will need to ensure you have a price in mind and be prepared to negotiate. You should also check that the dealer has a good reputation, which you can do by checking their reviews on websites such as TrustPilot and Google.
- Sell to a car buying service: Arguably the most convenient way of selling a car is through an online car buying service, such as WeBuyAnyCare.Com. Most websites allow you to get a valuation online and have locations where you take your vehicle to complete the transaction. You may receive a slightly lower price than selling privately, but you will have the cash in your account quickly, without the hassle.
- Part-exchange: If you are purchasing a new car, you could part-exchange your current vehicle as a deposit. It is seen as an attractive option as you have one transaction to sell your current vehicle and replace it with a new one, but you should be skeptical. Trading in your car can result in getting a low price, and you need to weigh-up the finances to ensure you’re getting a good deal.
Selling a car on your own might require a little more work and learning than heading to your local dealership. But follow these tips, and you’re well on your way to making a great sale!