How to sell a used car will outline the basic steps to successfully sell a car with minimal headaches and no mistakes. It's easy to get taken advantage of if you don't know what you're doing, so take the time to get educated.
Overview
Step 1: Make the Decision to Sell
Carefully evaluate your current transportation. Are you buying a new car because you want one and not because you need one? Does it really make sense to sell now and potentially pick up a car loan, or would you be better off delaying the sale and saving a little extra cash in the meantime?c
- Evaluate your finances. If you still owe money on the car, it may still be possible to sell it. Your lender might be willing to work something out with you, but is it in your best interest to do it? If you haven't paid down much of the principle, you could lose cash in the long run.c
Ask yourself if you're really up for this. Some people are born hagglers and others don't like to deal. If you don't have the time to invest in the process or if the thought of bargaining with a potential buyer makes you weak in the knees, carefully consider whether selling the car yourself is the right option for you.c
- Research the market. We're talking good old-fashioned supply and demand here. If everyone and their brother are selling cars just like yours, it will probably drive prices down, especially if you're only advertising locally. If your neighbors are selling a similar car at a ridiculously low price, you may profit from waiting until it's gone.
Step 2: Prepare the Car
Clean the car. Put yourself in the shoes of your potential buyers. If they see a mountain of McDonald's wrappers in the backseat and six years of old chewing gum in the ashtray, they're going to assume that you didn't take very good care of the car. Clean both inside and out to maximize the curb appeal and your car might just sell itself.c
Take care of simple repairs and basic maintenance. It only costs a couple of bucks to replace burnt bulbs or repair the ding that your little brother put in the fender. Same thing with an oil change and topping off the fluids. But the little things can really add up, and you'll likely end up with a better sale price if you take care of them in advance.
- Take the car to a professional detailer. They'll spiff up the car and make it look like new. Detailing costs a lot, though, so it's best to do it yourself if you can.c
Step 3: Decide How Much to Charge
Find out the Kelley Blue Book value of the car. Or, use a used car appraiser like the one at Edmunds.com or Yahoo! Autos.c c c
- Carefully evaluate the condition of the car to help determine how much it's worth. Honesty is the best policy here. Your buyer is going to see the vehicle before they buy it, so deluding yourself into thinking of a dent as small when it's really the size of the Grand Canyon isn't going to benefit you.c
- Figure out how much similar cars are selling for. Look at dealerships as well as used car listings.c
If your car appears on a list of best used cars, keep it in mind as a selling point when you set your price.c
- Evaluate whether or not you want to bargain. If you're willing to strike a deal, you'll want to put "OBO" in your ad, indicating that you'll take the best offer. Make sure that you have two prices in mind: the price you're going to ask for and the minimum you'll accept.
Step 4: Advertise Like Crazy
Carefully consider posting your home phone number in the window. The sad fact is that there are a lot of lunatics out there.c
- Find local places to advertise. The local paper is a good low cost choice, as are message boards or local auto trading magazines.
- Decide if you want to advertise online. Sites like eBay do a lot of business in used car sales. However, you'll need to help your buyers evaluate the car long distance and make some travel arrangements, either for them to come and get the car or to have the car brought to them. You may get more
money and will certainly get the car off your hands quicker, but carefully evaluate what you'll need to do before you take this step.
- Write a compelling ad. Tell potential buyers the major things they need to know:
- Year, make, and model
- Asking price and whether the price is OBO or firm
- Mileage
- Mention if the car has been kept in a garage
- Briefly list recent repairs or things in need of repairc
Step 5: Show It Off
Put your best foot forward. Remember that potential buyers are not only evaluating the condition of the car but also you as a potential seller. If you seem to be honest, trustworthy and open to negotiation, they'll be more likely to work with you.
- Be safe when meeting your buyers. If you don't feel comfortable showing the car to them, say that it's sold, make arrangements to show it in public or make arrangements for someone else to be there when you show it.
- Be prepared for calls. Carry some notes on the car in your pocket so that you can answer questions on the spot rather than risk losing a potential buyer.
Buyers will probably want to drive the car. It's amazing how many people skip this step, but make sure that they have a current driver's license and insurance and don't let them drive off alone with the car. Who knows whether or not they'll come back?
- They may also want to have a mechanic evaluate the car. One way to head this off is to have a mechanic's evaluation in a handy dandy folder for your prospective buyers to look at. Still, they may have a trusted mechanic and want to get it evaluated. Decide in advance how to respond to this kind of request.c c
Step 6: Close the Deal
If you've advertised the car as an OBO, you may need to bargain. But if you've figured out your absolute minimum as suggested above, you shouldn't have much problem determining whether or not to accept the offer or make a counteroffer.
- Accept only cashier's checks and money orders and only in the right amount. Make sure the check is valid before you let them drive off with the car.c
- Sign the title over to the buyer. You should be able to download all of the necessary paperwork from the DMV.
- Don't let them drive off with your plates. You could be liable for any tickets they might get. You should also cancel the insurance policy after they leave.c
