The key to selling your car is pricing
it wisely. A common problem among private-party sellers is overpricing.
Avoid that mistake by doing some initial research:
Determine your car's value with our Kelley Blue Book pricing tool. The "Private
Party Value" will be the most accurate for pricing your vehicle.
Provide an honest evaluation of your car's condition
to get a true idea of
its worth. Remember: A potential buyer will tend to be more critical
of the car's condition.
Search used-car listings for the pricing of similar models in your area.
Research dealer pricing but don't expect to get the same amount in your sale.
Dealer sales provide some benefits that private-party sales do not, such
as return/exchange policies, limited warranties, etc.
Factor in likely repair work. If your car is worth $10,000 but needs a new
clutch, then don't expect to receive full value. Reduce the price in accordance
with necessary repairs.
When creating your ad, you'll have the option to add "Or best offer" language
to your asking price. Including OBO could result in more leads, but it
may also result in lower initial offers.
Be realistic: Is your used car still a popular and viable model, or are you
driving a relic of an earlier age? Price it accordingly.
When selling your car privately, take
a cue from dealers: Make the car as attractive as possible. Use these guidelines:
Start by cleaning your car thoroughly.
Wash and wax the exterior, remove all interior and trunk clutter, vacuum
and wipe down all interior surfaces, and clean all the windows. Alternately,
you can have it detailed by a professional to save time. This service ranges
from $20 - $50 for a simple clean and wash to $100 - $200 for full detailing
(shampoo, wax, etc.).
Replace burnt out lights or fuses and top off all fluid levels.
Get a vehicle history report that you can present to the buyer; this provides
credibility and builds trust. Reports from Carfax are available
on CarBaaz.com.
If you have detailed inspection records, prepare itemized copies (with
service receipts) for the prospective buyer. This suggests
you're selling a reliable vehicle.
Many buyers will want to have your car inspected by a mechanic. You may
decide it's better to have your own mechanic inspect the car prior to placing
the ad, thus avoiding potential surprises closer to sale.
Alternately, have your car inspected by a third-party service.
These companies inspect your car at your home or office and independently
verify its description and general status. These services cost about
$100. You can find service
providers online or in your local phone book.
Make a copy of your vehicle title in preparation for the sale. If you don't
have the title, call your lending institution and request they send it
to you with a lien release. If you paid off the loan years ago and the
lending institution no longer exists, the Federal Deposit Insurance Corporation
(at 888-206-4662) can help you obtain your title.
You've prepared your car and have
an asking price - now you need to sell it. An effectively merchandised
ad will draw buyers' attention and can help sell the car quickly.
Photos, photos, photos. Use as many photos of your
clean, well-maintained car as possible. Include a variety of shots, such
as exterior front, rear
and side angles; interior front/rear seats; the dashboard; trunk/cargo
space; wheels and tires; engine block; and other special features (e.g.,
If the stick shift is a key selling point in your sports car, show pictures
of it.) If you were buying a car, wouldn't you want to see as many pictures
as possible?
Mention amenities that you enjoyed most: a V-8 engine, all-wheel drive,
a sunroof or moonroof, an electronic stability system, other safety features,
creature comforts, etc. What features were attractive to you when
you purchased the car?
Are you the car's only owner/driver? Has it been stored indoors
during all seasons? These items may also be worth mentioning.
Avoid generalities such as "Loaded!" or "Like new!" Instead,
be specific: loaded with what? And how is it "like new"? Does
it have relatively low mileage for its age? Is the interior immaculate?
You can include several forms of contact
information for potential buyers when you place your ad. Provide both daytime
and evening phone numbers and an email address. If you've followed the
steps listed above, you should begin receiving inquiries quickly.
If you receive a voice mail or email message, return the message promptly.
The buyer was interested enough to contact you, but the caller may cool off - or
find a better car - if you don't reply within 24 to 48
hours.
During the initial exchange, get the prospective buyer's full name, email
address and phone number; this will help you verify their identity
after the call.
Treat your initial contact as a marketing opportunity. Resell the car over
the phone or via email. Emphasize its key selling points without
exaggerating.
Be honest and direct if the buyer asks tough questions about your car. This
will ultimately save you time by narrowing down leads to the most interested
buyers. In addition, honesty builds credibility - nobody expects a
used car to be perfect, but they do want to know about problem
areas.
Encourage the potential buyer to see and test-drive the vehicle. Arrange
a meeting point or test drive for the near future and make yourself available
at the buyer's convenience, if possible. For more information on test drives,
click here.
After the discussion, use directory listings or a follow-up email to confirm
the buyer's identity. Be wary if the information provided doesn't
check out.
It's possible to sell a car even if
you still have an outstanding loan balance on the vehicle. This merely
adds a step to the sales transaction: closing the loan with your lender.
Call your lending institution to determine
the best way to close out the loan. At the same time, ask about obtaining
a lien release, which states that there are no outstanding
loan obligations on your car.
If you owe more on your loan than you can readily pay prior to a sale,
it's possible to close the loan and transfer ownership at the same time.
For instance, Escrow.com can facilitate payment to the lien holder during
a normal escrow transaction. For more information on using escrow
services, click here.
If neither of these options is satisfactory, conduct the sale at the lien-holding
institution. The seller can pay off the loan balance with the sale proceeds
and immediately sign over the title to the new owner. Call the lending
institution beforehand to facilitate this transaction. If the lien holder
is out of state, obtain a temporary operating permit from your state's
Department of Motor Vehicles. Once the loan is paid off, you can then send
the signed title to the new owner. While this option may involve more faith
by the buyer, remind that person that it's also in your best interest to
transfer the title as soon as possible to eliminate personal
liability.
Leased cars represent a different situation. If you want to transfer your
current lease to a new owner, we recommend using a lease-transfer
service.
