Simple Advise on Selling Your Car
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HOW TO SELL YOUR CAR AND GET THE BEST PRICE
Here are 10 simple steps that will help you turn your used car into
cash. Everything from pricing, advertising and negotiating is
covered in this short, easy-to-follow process.
1. KNOW YOUR MARKET
Is your car going to be easy to sell? 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.
•The sale of convertibles and sports cars is seasonal. Sunny weather
brings out the buyers. 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 if you find the
right buyer.
Your first step is to check on-line classified ads to see how much
others are asking for your type of car. Edmunds.com Used Vehicle
Locator and other Internet sites allow you to search with specific
criteria. For example, 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
so you can list your car at a price that will sell it quickly.
2. PRICING YOUR CAR
Once you have surveyed the on-line classified ads, use Edmunds.com
True Market Value (TMV®) pricing to determine the fair value of your
car. Edmunds.com TMV prices are adjusted for mileage, color, region,
options and condition. Once you have followed the prompts and gotten
a specific price, you can also generate a "For Sale" sign. An
Edmunds.com "For Sale" sign will give your price an air of
authority.
There are always some exceptions to the rules of pricing, so you
should follow your intuition. And be sure to leave a little wiggle
room in your asking price. Ask for slightly more money than you are
actually willing to accept.
If you want to get $12,000 for the car,
you should list the car at $12,500. That way, if you get $12,500 —
great! But if you have to go lower, it won't be a terrible loss.
You may have noticed how creative used car dealers get in pricing
cars. Their prices usually end in "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 $20 might jump off the shelf at $19.95.
On the other hand, as a private party seller, you don't want to look
like a car 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. THE IMPORTANCE OF CURB APEAL
When people come to look at your car, they will probably make up
their minds to buy it or not within the first few seconds. This is
based on their first look at the car. So you want this first look to
be positive. You want your car to have "curb appeal."
Before you advertise your car for sale, make sure it looks as clean
and attractive as realistically possible. This goes beyond just
taking it to the car wash. Here is a to-do list that could help turn
your heap into a cream puff:
•Make sure it is washed, waxed and detailed.
•Make sure your car is both mechanically sound and free from dents,
dings and scrapes.
•Consider making low-cost repairs yourself rather than selling it
"as is."
•Shovel out all the junk from the inside of the car. When
prospective buyers go for a test-drive, you don't want them to feel
like they've walked into your messy bedroom. Let them visualize the
car as theirs.
•Wipe the brake dust off the wheel covers and clean the tires with a
tire gloss product.
•Thoroughly clean the windows (inside and out) and all the mirrored
surfaces.
•Wipe down the dashboard and empty the ashtrays.
•Have all your maintenance records ready to show prospective buyers.
•If the car needs servicing or even a routine oil change, take care
of that before putting it up for sale.
•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.
•Order a Carfax report and show it to the buyer to prove the car's
title is clean and the odometer reading is accurate.
4. WHERE TO 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.
On-line classified ads, such as the Edmunds.com Used Vehicle
Locator, are becoming increasingly popular. On-line ads are
particularly effective with hard-to-find or collector cars. In most
cases, on-line classifieds reach a geographically wider area of
buyers.
Here are the main markets for advertising used cars:
•On-line classified ads such as those on Edmunds.com
•Daily newspaper classified ads
•Weekly "shoppers" and giveaway newspapers
•Bulletin boards at your office, a local supermarket or a college
campus
•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.
One last word of advice about advertising: if you run an expensive
classified ad, be sure you are available to take phone calls from
possible buyers. Many people won't leave a message for a return
call. So answer the phone — and be polite. Creating a good first
impression is the first step to getting buyers to come and see the
car in person.
5. CREATE ADS THAT SELL
When creating "For Sale" signs or putting a classified ad in the
paper, you have an opportunity to show how eager you are to sell the
car. This can be done by inserting the following abbreviations and
phrases:
Must Sell! This often means the seller is leaving town and needs to
dump the car at a fire sale price.
OBO: This stands for "or best offer" and it indicates that you are
willing to entertain offers below the stated price. This usually
means you are eager to sell the car.
Asking price: This also communicates the feeling that you will
negotiate, but it is one notch below OBO on the eagerness scale.
Firm: This word is 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 when you phrase your ad.
Little words convey a lot. Besides the price, your ad should also
include the year, make, model and trim level of the car you are
selling along with the mileage, color, condition and popular
options.
6. SHOWING YOUR CAR
Keep in mind that when you sell your car, people will also be
evaluating you. They will be thinking something like, "Here's the
person who's owned this car for the past few years. Do I trust
him/her?" Make the buyers feel comfortable. They will probably be
uneasy about making a big decision and spending money. Put them at
ease and answer their questions openly.
Potential buyers will want to test-drive the car. If in doubt, check
to make sure they have a driver license. Ride along with them so you
can answer any questions about the car's history and performance.
Also, they may not know the area, so you might have to guide them.
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.
Some sellers feel uncomfortable about having buyers come to their
house to see the car. However, you can generally screen buyers on
the phone. If they sound suspicious, don't do business with them. If
you don't want people knowing where you live, arrange to show the
car at a park or shopping center near your home. However, keep in
mind that people will eventually see your address when you sign the
title over to them.
Some buyers will want to take the car to a mechanic to have it
inspected. If you have an inspection report from your mechanic, 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.
Be ready for trick questions such as, "So, what's really wrong with
the car?" If you get this, refer them to the mechanic's report or
invite them to look over the car more carefully.
7. NEGOTIATE THE BEST PRICE
If a person comes to look at the car and it passes their approval
after a test-drive, you can expect them to make an offer. Most
people are uncomfortable negotiating, so their opening offer 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. 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 out how much he or she will 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 — and let them
leave. They may return tomorrow ready to pay your price.
The above are just a few of the openers you might encounter. Think
of your responses ahead of time so you won't be caught unprepared.
In general, it's a good idea to hold to your price when your car
first goes up for sale. If you don't get any buyers right away,
you'll know you have to be flexible about the price.
8. HANDLING COMPLICATIONS
In some cases, you might reach an agreement with a buyer that is
contingent on performing repair work on the car. 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 while being fully
aware of any necessary repairs. 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
needed, and you trust the mechanic's assessment, you could propose
reducing the agreed-upon price by all, or part, of the amount 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.
9. FINALIZING THE SALE
Rules governing the sale of motor vehicles vary somewhat from state
to state. Make sure you check with the department of motor vehicles
(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 into 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
either cash or a cashier's check), record the odometer reading and
sign the car's 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 owner. Additionally, in most states, a release of
liability form can be downloaded from the DMV web site. Fill this
out, along with the car's mileage, and mail it in as soon as the car
is sold. This establishes the time at which the car left your
possession.
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 over 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, have the title mailed to the new owner.
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. AFTER THE SALE
In most states, the condition of a used car for sale is considered
"as is" and no warranty is provided or implied. Therefore, if the
car breaks down after you have sold it, you are under no obligation
to refund the buyer's money or pay to have it repaired. If you have
sold a car to someone who took it for inspection at a garage and the
mechanic found nothing wrong with it, you have done all you can to
protect yourself and the buyer.
The best way to feel peace of mind after selling your used car is to
make sure you did everything correctly. This means being open about
the condition of the car before the sale and timely and complete in
transferring DMV paperwork after the sale.
When done correctly, selling a used car can be a win-win situation.
You have turned your used car into cash and provided reliable
transportation for the next owner. Focus on the benefits to both
parties and you are likely to have a smooth and profitable
experience.
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