How to Sell Your Car (Part 3)

Now it's time to see all your prep work through. The final steps of selling your car are to show the car to prospective buyers and complete the sale.

6. Show the Car

Be prepared to answer the same questions over and over. Often times the answers will be clearly stated in your ad. People just don't read. Normally this is annoying. But in this case it reveals what is important to prospective buyers. Listen carefully to how they respond to your answers.

If you start seeing a pattern of disinterest in one or two aspects of your car, you might do well to make a change either to the car itself or how you present your response to that particular question (but never lie).

When prospects evaluate your car they will need to drive it. Make sure each one has a valid driver's license and proof of insurance. Go with them. Remember, these people are strangers. A degree of trust is required from both parties, but the seller is the one with more at stake in this situation. Do not let the vehicle out of your sight as there's no telling what could happen. It's also best to let a friend or family member know who you're meeting with and when.

7. Make A Deal

Your pricing should be in line with a price guide (e.g. Kelley Blue Book or Edmunds). Be prepared to receive lower offers by some margin, generally between 10% and 20%. However, less experienced people will often not bargain or negotiate.

On the other hand you should also expect low ball offers far below your asking price. Don't waste your time with those. Low ballers are tire kickers who are not serious prospects. Even if they do buy your car the effort you will expend will likely be excessive and the price will be much lower than you want.

So price your car according to book or thereabout and then be prepared to entertain somewhat lower offers. Obviously the lower you go the sooner you'll sell. But a good car that's well presented will help ensure you sell faster and much closer to book value than a car that's not as well prepared.

Once a price has been agreed upon with a buyer they are to present you with valid payment (cashiers check or cash) and you sign the title over to them. It's usually a good idea to also use a Bill of Sale to further document the transfer. Beware of scams involving cashiers checks or ANY deviation from “cash for car”. The best way to prevent fraud is to deal in cash and/or conduct the actual transaction at the buyer's bank.

If you have a lien on the car (i.e. the loan isn't yet paid off) then arrangements must be made with your lender to pay off the loan and release the title to the buyer. Call them and ask what they require to do so.

Lastly, the buyer needs to have auto insurance and tags upon taking delivery of the car. While it is common practice to let the buyer use your license plates until they get theirs, you're better off taking the tags back and turning them in to your state's department of motor vehicles (DMV) yourself as soon as ownership changes hands.

One easy way to do this is to go with the buyer to the DMV office after the sale. The other alternative is for the buyer to purchase a temporary trip permit that's valid for several days. This can be done online and printed out. Check with your state's DMV for details.

Once sold, be sure to inform your insurance company of the sale, cancel your registration with the DMV, turn in your license plates and cancel any parking permits you may have for that car. You may also need to report the sale to your town or locality for property tax purposes.

Summary

In a nutshell that's how to sell your car privately. Make sure you have your paperwork in order, the car's maintenance is up-to-date, it's clean, you have a clear, compelling ad to sell the it, and your price is within the ballpark for similar cars in your area.

Then show the car, close the sale, and report the transaction to the appropriate parties to close out your obligations involving that vehicle.

How to Sell Your Car (Part 2)

Continuing on from yesterday's article on how to sell your car, the next steps are:

4.  Determine Your Price

How much is the car's book value and how much are you willing to accept?  Check the car's value on Kelly Blue Book (kbb.com) for a "Private Party Sale" in your zipcode.  Edmunds.com is also another site to check. Those values are the most buyer's would likely be willing to pay.

However, you should expect as a matter of course that they will negotiate with you.  How much are you willing to really sell the car for?  Pick that number and keep it to yourself for negotiating purposes.  Five to 10 percent is generally a reasonable figure.

Another alternative is to go to a dealer for a quote. You'll likely get the highest bid from a new car dealer who sells that brand of car (e.g. if you're selling a Honda, go to Honda dealers).

5.  Draft a For Sale Ad

Write down facts and good things about the car and about your ownership of it as a basis for your ad.  Important facts about the car include the vehicle's year, make, model, mileage, transmission time (auto or manual), air conditioning, how many airbags, anti-lock brakes, engine size/type, color, number of doors, whether it's 2 wheel drive or 4 wheel drive, what options it has (navigation system, DVD player, CD, MP3, etc).

Facts about your ownership of the vehicle include whether you're the original owner or how long you have owned it, other states you have lived with this car, if there are complete maintenance records, if it's been in any accidents, if it is still under warranty and so forth.

Other good things to include are if you're a non-smoker, don't drive your pets around in it (dog hair is hard to remove from upholstery). You might also want to include your opinions on what the vehicle is good for.

For example, in the case of an SUV it could be useful for hauling things, going places in snow, or off-roading and so on. Mention things you have used it for that a potential buyer would also likely find useful.

Once you've done these steps I'd suggest advertising it on CraigsList with the photos you took, possibly in the local newspaper and other places online (Facebook marketplace is growing). Don't put your phone number in the ad.  Let online prospects contact you by email before proceeding in a way that you're comfortable with (though if you advertise in the paper you'll need to list your number). That way you'll also have an easier time managing the information.

Tomorrow we'll cover the final steps to closing the deal.

How to Sell Your Car (Part 1)

If you want to sell your vehicle, you need to present it well and back that up with solid evidence that it's a good vehicle.  Here are a few things I would suggest:

1.  Clean and Wash Inside Out

It doesn't have to be detailed but it definitely needs to be clean. Vacuum and dust (clean the inside of the windshield and windows), dash, seats, ashtray/cointrays/cupholders, carpet, floor mats and trunk.  Clear out anything and everything that's not part of the car, especially in places like the glovebox.  

Then drive it through a car wash.  Take pictures of the exterior and interior for advertising the car.  I would use a photo editing program to blank out the license plate numbers.

2.  Get Your Records Together

This is good to have all the time, not just for when you sell it. Make sure you know how long the registration and inspection is good for, and collect all the receipts you have for service that's been done on the car.  Put it in chronological order in a folder or large envelope. Get caught up on maintenance if it's behind. those are the items you should be on top of as a matter of course.

3.  Check the Vehicle History

Run a CarFax report on it to make sure it's accurate.  Even if you're the original owner, the reports aren't always correct.  For example, if the report says the car has had a major accident and it hasn't, it's better to know this ahead of time than to be caught off guard later. Plus this will enhance your credibility with prospective buyers.

You'll need the 17 digit VIN # to do this (on vehicle registration form and bottom of windshield, driver's side) to check this.

VIN location