Car News – Trent Thompson
How To Sell a Car
Avoid tire kickers and get to the serious buyers with our comprehensive car selling guide.
1. Three Ways To Sell a Car
When preparing to sell your car, you'll need to weigh the options of trading it in at a dealership, managing the sale independently or getting an instant cash offer. The method you choose will influence the valuation of your car, with each avenue presenting its own set of advantages and disadvantages.
Pros To Trading In Your Car
Quick and convenient process with little hassle.
No expenses for listing and selling your car online.
Avoid dealing with texts, emails, or personal calls.
Potential to reduce sales tax on your new car.
Pros To Selling Your Car Yourself
Direct negotiation with buyers.
Opportunity to be paid more for your vehicle.
Save money from no dealer costs.
Pros To Choosing Instant Cash Offer
Offer is instant.
Redeemable immediately at participating local dealers.
You can backout because there's no binding obligations.
2. Gather Paperwork and Choose an Asking Price
If you're asking yourself "what paperwork I need to sell my car privately?", we've got you covered. Just locate the following items and complete the tasks before listing your car for sale:
Your Car's Title: Ensure that your car title is readily accessible and securely stored. This document will be a prerequisite when finalizing the sale of your vehicle.
Check With Your Lender: If you still owe money on your vehicle's loan, you'll want to contact your lender to learn how to arrange the sale. A buyer might not understand this process, so it's good to know how to explain it to them.
Your Car's Service Records: Routine oil changes and service records provide tangible evidence of your car's well-maintained history, this can help instill confidence in a buyer. In the absence of receipts, consider obtaining a summary statement from your dealer, regular mechanic, or oil change center. These records not only reassure potential buyers they're getting a great car, but also contribute to negotiating a favorable price, whether with an individual or a dealer.
Original Sales Paperwork: Beyond the fundamental details such as the year, make, model, and mileage, understanding your car's trim level is important as it can potentially increase the resale value of your car. To find this, refer to your original sales documents or the window sticker for a comprehensive list of options.
Vehicle History Report: Be proactive and acquire a Carfax or AutoCheck report to address inquiries about your vehicle's accident history. Openly communicating about any past incidents also builds trust with potential buyers.
Follow these next steps to choose the ideal sales price for your vehicle:
Set An Attractive "Asking Price": Avoid the common pitfall of overestimating your car's value, as this can lead to unrealistic expectations and potential difficulties in finding a buyer. Striking the right balance is key. Here's a few tips for success:
Mechanic’s Assessment: Seeking a professional mechanic's evaluation can unveil issues you might overlook. From engine problems to minor details like a broken taillight, this assessment not only aids in pricing your vehicle accurately but also allows you to address concerns before potential buyers inspect it.
Valuation Tools: Leverage valuation tools such as those provided by Kelley Blue Book. These tools offer a quick and accurate estimate of your vehicle's value, considering various factors.
Local Listings: Research local listings to gauge the selling prices of similar vehicles with comparable features. This market comparison helps you align your price with the prevailing rates in your area.
Keep This in Mind When Raising Price To Create Negotiation Room: Before coming to a conclusion on your cars sale price, let's briefly talk about how car selling websites and apps search filters work. When someone searches for a car, they'll filter for a price range, usually in intervals of $1,000. Let's say someone's looking for a $20,000 car, but you price your car at $20,150, your car won't show up. You'd be better off pricing your car within range they'll be filtering, in this case leaving it at $20,000.
3. Preparation To Sell Your Car
When a buyer shows up to see your car, you'll want them to think it looks good.
Before listing your car for sale, it's crucial to fix any issues that may affect its appeal to potential buyers. You don't need to fix every little thing on the exterior, but cleaning the interior is a must.
For larger mechanical problems, it's advisable to resolve them unless you're planning to sell the car "as is" at a discounted price. Addressing issues like worn-out brake pads that screech, wheel misalignment, worn wheel bearings or a noisy engine, especially if you aim to maximize your vehicle's market value.
If you're selling a more expensive car you may want to consider investing in professional detailing to present your car in the best possible condition. It can contribute to a higher sales value.
If professional detailing doesn't make sense financially, you can clean it yourself. Here are some interior and exterior tips to enhance your car's appeal:
Interior Tips for Selling Your Car
Remove all personal items and debris.
Vacuum and shampoo carpets for a fresh look.
Clean the dashboard, seats, mirrors, and other surfaces for a polished appearance.
Address and eliminate any odors in the vehicle.
Exterior Tips for Selling Your Car
Remove all stickers and magnets for a clean exterior.
Repair dents, dings, and scratches.
Replace any burned-out headlights or taillights.
Fix windshield chips and cracks for a clear view.
Check the brakes, and consider replacement if they are worn down.
Inspect the tires and determine if replacement is necessary.
4. Effective Strategies for Car Advertisement
When selling your car privately, reaching a broad audience and creating an impactful ad becomes important. Here are a few tips and tricks for advertising your car online to maximize your ads visibility to potential buyers.
High quality images are king. They attract more eyes and they build confidence in a buyer's mind, this will separate your car from other used cars for sale by owner.
How To Take Good Photos: Find a good location and take the photos just after sunset for the best lighting. Don't be shy on the number of images you add. Include exterior angles, close-ups of the interior, the driver's seat, the back seats, the trunk. Also include the dash, odometer (to show the cars mileage), the tires (to show tread depth) and the engine. If you want to really stand out, incorporate videos to show off your car. Don't forget to clean your camera's lens before taking any photos or videos.
Key Considerations for Crafting an Engaging Car Advertisement:
Offer a Brief Description: Start with a concise yet informative overview, avoiding repeating details such as the year, make, model, mileage and price. Those details were most likely added outside of the description. We also advise avoiding the use of ALL CAPS or ***asterisks*** to gather attention, they only degrade the quality of your description.
State The Reason for Selling: Address why you're selling the car upfront; potential buyers will want to know.
State Your Vehicle's Condition: Be transparent about the car's condition, including the Vehicle Identification Number (VIN). This allows them to easily check the vehicle's history.
Include Special Details: Provide additional information such as options, add-ons and any special details about the car that aren't already obvious or stated outside of the description.
5. Screen Callers to Sell Your Car Safely
When selling your car privately, follow these strategies to ensure a safe meet up and secure transactions. Select a safe meeting place for potential buyers, opting for well-trafficked retail or restaurant parking lots equipped with security cameras. Verify that your auto insurance policy covers test drives, and capture a photo of the potential buyer's driver's license for added safety. Be cautious and refuse any requests that make you uncomfortable.
It's always smart to bring a family member or friend when conducting the transaction with a private party.
When it comes to payment, prioritize reputable forms such as cashier's checks or secure online options provided by trustworthy banks. While cash is preferred for smaller transactions, for larger amounts, prioritize online payment methods or escrow services. If accepting cashier's checks, make sure the transaction occurs at the buyer's bank to verify funds on the spot.
You should practice good paperwork management, from the transfer of the title to the completion of the bill of sale and a release of liability. If you encounter challenges with the car's title, explore how to navigate the process of selling a vehicle without one.
Tips on Car Paperwork Management
Title Transfer: Adhere to your state's requirements for transferring the vehicle title. Complete necessary paperwork, providing accurate odometer readings and sale prices. Make copies of both sides of the signed title for your records.
Bill of Sale and Release of Liability: Consider completing a "bill of sale" and "release of liability" for added protection. Send the signed "release of liability" to your state's DMV to avoid post-sale complications.
License Plates: Remove your license plates at the time of sale, and inform the buyer to make their own arrangements. Follow state regulations for turning in old license plates to the DMV.
Sensitive Document Handling: Before sharing service records, block out any sensitive information. Remove contracts or credit applications from the car's compartments to safeguard personal data.
6. Prepare for Pre-Sale Car Inspections
Buyers frequently want a mechanic's evaluation before committing to a car purchase. You can be proactive and obtain a pre-sale inspection from your mechanic, this will add to your new car owners confidence. Getting your own car inspection can also prepare you for what a buyer might find in their own inspection of the car.
If the buyer wants their own mechanic to inspect the car, clarify that they are responsible for the inspection costs. If they return with a list of issues, you might have to lower your sales price. But address only the problems that demand immediate attention rather than addressing every item on the list.
7. Set Up a Test Drive
Coordinate a secure meeting spot to showcase your used car, opting for locations like a mall or a local coffee shop. Whenever possible, bring a friend along for added safety. Check your city for set-up safe locations for buyers and sellers to meet.
After meeting up, let them test drive your car. But, stay with them in the passenger seat. Be prepared to offer answers to any questions they may have.
8. Negotiation Tips for Selling Your Vehicle
When selling your car to a private owner, learning to negotiate is important. Allow the buyer to take the lead during negotiations. If you've incorporated some flexibility into your asking price, it allows room for the buyer to present a counteroffer if they haven't immediately accepted your initial proposal.
Negotiation Tips:
Establish Your Bottom Line: Determine your lowest acceptable offer beforehand, and don't accept any offer lower than it.
Realistic Pricing: Be realistic in setting the price, considering market conditions and the vehicle's value. A reasonable starting point can lead to smoother negotiating.
Quick Tip: Opting for a instant cash offer takes this process away from selling your car yourself.
9. Closing The Deal
Every state has a unique process for transferring ownership of a car, check with your state department of motor vehicle (DMV) to determine the specific steps to follow for transferring ownership. The DMV should have a list of requirements, but at a minimum, you'll need the cars title, the vehicle's current odometer reading, and your state-issued driver's license.
Paperwork You'll Want To Sell a Car Privately
Vehicle Title: Visit your states DMV site to learn more about the car title transfer process.
A Bill of Sale
Odometer Reading
Maintenance Records
Vehicle History Report
The Vehicle's Warranty
The “as is” Form
Notice of Transfer and Release of Liability
A vehicle ownership/registration form
You can visit your states DMV website for most of these documents. Make sure to check your state’s DMV for paperwork requirements following the sale.
Quick Tip: Opting for selling your car to a dealer takes this process away from selling your car yourself.
Buying a New Car
Now that you've successfully sold your car, you're most likely in need of a new car. You can visit Slippd and download our app to continue your car buying journey.
