Car Selling Tips

How to Sell Your Car

1. Test the Market
   
   Is your car going to be easy to sell? Will you have multiple offers? Is it a hot commodity? Or will you have to drop your price and search out additional avenues to sell it?
   
   Here are a few general rules to answer these questions:
   
   
   • Family sedans, while unexciting to many, are in constant demand by people needing basic, inexpensive transportation.
     
     
   • Four-wheel-drive vehicles are popular with younger people and often move quickly, even older models.
     
     
   • The sale of convertibles and sports cars are seasonal. The sunny weather will bring out eager buyers for your ragtop. Fall and winter months will be slow.
     
     
   • Trucks and vans, used for work, are steady sellers and command competitive prices. Don't underestimate their value.
     
     
   • Collector cars will take longer to sell and are often difficult to price. However, these cars can have unexpected value to the right person.
     
     
   Your first step is to check car ads online. Most sites, such as Edmunds.com or AutoTrader.com, allow you to search with specific criteria. For example, you can select the year and trim level of your car and see how many similar cars are currently on the market. Take note of their condition, mileage, geographic location and selling price.
   
   
2. Price Your Car Competitively
   
   Edmunds.com has a special feature to help you set the asking price of your car. If you go to the used car pages and look up your car, you will see a bar labeled "Appraise This Vehicle." Click on this bar and follow the prompts. This will give you an Edmunds.com True Market Value® price that is adjusted for mileage, condition and options. It also takes into consideration the region in which the car is being sold. And when you are done configuring the car, you can print out a "For Sale" sign to put in your car window.
   
   There are always variations to the rules about pricing, so you should follow your intuition when setting a price. And be sure to leave a little wiggle room in your asking price. Your beginning price should be higher than the price for which you really want to sell the car. In other words, if you want to actually get $12,000 for the car, you might start at about $12,500. That way, if you get $12,500 -- great! But if you have to go lower, you won't take a terrible loss.
   
   You may have noticed how creative used car dealers get in assigning a price. Their prices usually seem to end in the number 995, as in: $12,995. Are we not supposed to notice that the car basically costs $13,000? There is a lot of psychology in setting prices. A product that doesn't sell well at $21.00 might jump off the shelf at $19.95.
   
   On the other hand, if you are a private party, you don't want to look like a dealer. Therefore, you might want to take a simple approach and set your price at a round figure such as $12,750 or $12,500.
   
   
3. Use the Proper Ad Lingo
   
   When creating your "For Sale" signs or putting an ad in the paper, you have an opportunity to communicate how eager you are to sell the car. This can be done by inserting the following abbreviations and phrases:
   
   OBO: This stands for "or best offer" and it indicates that you are willing to entertain offers below the stated price.
   
   Asking price: This also communicates the feeling that you will negotiate, but it is one rung above OBO. It means you are asking a certain price, but might accept a lower price.
   
   Firm: This is less common, but it can be used to rebuff attempts to negotiate. It indicates that you aren't in a hurry to sell the car -- you are most interested in getting your price.
   
   Think about what you are telling people by the way you phrase your ad. These little words convey a lot.
   
   
4. Get Your Car Ready
   
   Before you advertise your car for sale, make sure it looks good enough to attract buyers. This goes beyond just taking it to the car wash. Here is a to-do list that will help you turn your heap into a creampuff:
   • Make sure it is washed, waxed and detailed. "Curb appeal" is probably the most important element of selling a car.
     
     
   • Inspect the car and make sure it is both mechanically sound and free from dents, dings and scrapes.
     
     
   • Consider making all repairs yourself rather than selling it "as is." If you can save money while still making it look good and making it run well, you won't have to charge a higher selling price just to recoup any last-minute expenditures.
     
     
   • Shovel out all the junk from the inside of the car. When prospects go for a test drive, you don't want them to feel like they've walked into your bedroom or some intimate place. Let them visualize the car as theirs.
     
     
   • Wipe the brake dust off the front wheels and clean the tires with a product such as Armor All.
     
     
   • Thoroughly clean the windows (inside and out) and all the mirrored surfaces.
     
     
   • Wipe down the dashboard and empty the ashtrays.
     
     
   • Dig out all your maintenance records and have them ready to show interested parties.
     
     
   • If the car needs servicing or just a routine oil change, have that taken care of.
     
     
   • Have your mechanic check out your car and issue a report about its condition. You can use this to motivate a buyer who is on the fence about buying because you have overcome one more objection they can present.
   
   
5. Advertise Your Car
   
   Now that your car is looking great and running well, it's time to advertise it for sale. Traditionally, people advertise in newspaper classified ads. These ads can be expensive, but they get results. However, online ads are becoming more of an option, particularly with hard-to-find or collector cars.
   
   Here are the main markets for advertising used cars:
   • Online classified ads such as those on Edmunds.com and AutoTrader.com
   • Daily newspaper classified ads
   • Weekly shoppers and giveaway papers
   • Business bulletin boards at your job, a local supermarket or college
   • Word of mouth -- tell your friends and family you have a car for sale
   • Put a "For Sale" sign in the car window
   
   Creativity is required when it comes to advertising. Think of unusual places to put ads (skywriting is probably too expensive), and you will get results.
   
   
6. Show the Car to Interested Parties
   
   Bear in mind that when you sell your car, people will also be evaluating you. They will be thinking something like, "Here is the person who has taken care of this car for the past few years. Do I trust him/her? Would I feel comfortable negotiating with this person?" With this in mind, you should make a good impression. Make buyers feel as comfortable as possible. They will probably be nervous in anticipation of making a big decision and spending a lot of money. Put them at ease and answer their questions openly.
   
   Potential buyers will want to test-drive the car. It's not a bad idea to make sure they have a driver license. It's also a good idea to go with them so you can answer any questions they have about the car's history and performance. Furthermore, they may not know the area, so you might have to guide them along the test-drive route.
   
   Some buyers will want to take the car to a mechanic to have it inspected. If you have a report from your mechanic evaluating the car, this might put their doubts to rest. However, if they still want to take the car to their mechanic, this is a reasonable request. By now, you should have a feeling for the person's trustworthiness. If you feel uncomfortable or have reason to think they will steal the car, decline the offer or go along with them.
   
   
7. Negotiate With the Buyer
   
   If a person comes to look at the car, they test-drive it and it passes their approval, you can expect them to make an offer. Most people are uncomfortable negotiating, so this might take several forms. "I like the car, but..." This is the softest way to negotiate on the price. They may not even state that the price seems too high. However, if they say, "I like the car, but..." and then lapse into uncomfortable silence, you might consider an appropriate response. If you really want to move the car, you could say, "How much would you be willing to pay?"
   
   "What's your best price?" This is a more direct way to probe the seller to find how much he or she would come down. If you get this from a prospective buyer, don't seem too eager to reduce your price.
   
   "Would you accept?" Now we're getting somewhere. This buyer has thought it over and is making an offer. But the offer is being presented in a polite manner designed to allow for a counter offer.
   
   "Take it or leave it." This buyer is making an offer that supposedly leaves no room for a counter offer. In reality, this buyer might be bluffing. Still, they are sending a message that they are close to their final price. The only way to know for sure whether it really is a "take it or leave it offer" is to leave it. They may be back tomorrow ready to pay your price.
   
   The above are just a few of the openers you might encounter. Give your response some thought ahead of time so you won't be caught unprepared when the time comes.
   
   
8. Handling Complications
   
   In some cases, you might reach an agreement with a buyer that is contingent on performing repair work. This can lead to misunderstandings down the line, so avoid this, if you can. The best thing to do is have your car in good running order and know in detail about any repairs necessary. If you state clearly in your ads that the car is being sold "as is," you can refer to this statement when it's time to close the deal.
   
   Still, a trip to the prospective buyer's mechanic might turn up a new question about the car's condition. What to do?
   
   This must be handled on a case-by-case basis. If the repair is warranted, and you trust the mechanic's assessment, you could propose reducing the agreed upon price by the amount needed for the repair. If the repair is questionable, but the buyer is insistent, split the difference, or have the car taken to your mechanic for further evaluation.
   
   Remember, the older the car, the more a mechanic is likely to find. At some point, you have to draw the line. You may have to say to the buyer, "True, this work could be done. But the car drives well as it is. And the proposed repair isn't addressing a safety concern." After all, a used car -- particularly an elderly one -- isn't expected to be perfect. But it still might be useful.
   
   
9. Finalize the Sale
   
   The laws governing the sale of motor vehicles are regulated by the state's department of motor vehicles. These rules will vary somewhat from state to state. Make sure you check with the DMV in your state, and keep in mind that much of the information is now available on DMV Web sites.
   
   When selling your car, it's important to limit your liability. If someone drives away in the car you just sold, and they get in an accident, can you be held responsible? There are two ways to deal with this concern.
   
   Once you have the money from the sale (it's customary to request a cashier's check or cash) sign the title over to the buyer. In some states, the license plates go along with the car. A new title will be issued and mailed to the new ower.
   
   But what if you still owe money on the car, and the bank is holding the title? One way to deal with this is to conclude the sale at the bank where the title is held. Call ahead and have the title ready. Then, once money has changed hands and the bank has been paid the balance of the loan, sign the title to the buyer.
   
   In some cases, however, an out-of-state bank might hold the title. In this instance, it is recommended that you go with the buyer to the DMV and get a temporary operating permit based on a bill of sale. Then, after you pay off the balance of the loan with the proceeds from the car sale, you will have the title mailed to you. Sign it over to the new owner and the transaction is complete.
   
   Finally, remember to contact your insurance agent to cancel your policy on the vehicle you have sold (or transfer the coverage to your new car).
   
   Before your car drives away for the final time, take a last look through the glove compartment, the trunk and under the seats. You might find some long forgotten treasures you misplaced years ago.
   
   
10. Final Thoughts
    
    There are many unexpected bumps in the road that can arise while selling a used car. These will be handled easily if you are dealing with a reasonable person. So, as you are contacted by prospective buyers, use your intuition to evaluate them. If they seem difficult, pushy or even shady, wait for another buyer. With the right person, selling a used car should be simple and easy.