Most people replace the automobile they drive after several years. Unfortunately, many trade in their old ride to the dealer instead of selling the used car themselves. Although a private car sale requires more effort than trading it in, it can result in thousands of extra dollars for the old used car. The trade in price will almost always be much lower than the sale price in a private market sale.
Research reputable online auto pricing websites such as Kelly Blue Book (KBB), Edmunds, and National Automobile Dealers Association (NADA) to get an idea of how much the used car is worth in a private sale. In most cases, the seller should set a price higher than the minimum acceptable price in order to make room for buyer negotiation, which almost always occurs. Haggling over the price is a time-honored tradition in car sales.
If there is a major problem with the car that reduces its value significantly, the seller should set a lower price that is lower than the market but make the price firm. This will attract buyers to a car that has problems as well as mitigate the price drop resulting from the defect.
Cleaning the Car
First impressions count. The buyer will have made up his mind on whether to buy a used car within the first few seconds of seeing the car. This means the car needs to look spotless.
The first step is a good exterior car wash and car wax. Then the interior of the car should be cleaned thoroughly. The entire car should be emptied of all personal belongings including the glove box and the trunk. The car needs to be detailed. All small problems such as broken door knobs, dents, dings, scrapes, or stains on the upholstery need to be corrected. Do not give the buyer a reason to run away from the deal or cut the price, especially for a problem that can be fixed without spending more than $5.
Used Car Sale Advertisement
Advertise in media that can reach a large number of potential buyers such as the newspaper classified section or online ad websites such as Craigslist. Put up a "For Sale" sign on the car, but make sure parking a car with a "For Sale" sign does not violate any local ordinances.
Avoid doing any transactions that cannot be completed locally face-to-face. Many long distance buyers are scammers. Sticking with local buyers is a good way to avoid the vast majority of scams.
While meeting with a potential buyer, let him test drive the car. A successful test drive will help make the buyer more confident in making a deal.
Auto Smog Check
In states that require a smog check before selling a used car, such as California, the seller is legally responsible for the costs of passing the smog check including any needed emissions related repairs. The deal can be canceled by the buyer if the car fails the smog check, even with an as-is sale.
Contact the state DMV to make sure all state requirements for selling a car are met.
Completing the Used Car Sale
Except for insultingly low offers, the seller should counteroffer the buyer's offer, and haggle until both sides agree upon a price. Create a bill of sale which describes the car, the price, and the odometer reading. The bill of sale should also state that the car is being sold as-is with no warranty.
Payment should always be in cash. Counterfeit cashier's checks and money orders are very common and should not be accepted. Do not use Paypal since there is the possibility of a chargeback. Do not wire funds via Western Union or any other wire service to anyone, even if the buyer has a check that is greater than the agreed upon price.
Once payment has been received, sign the title over to the buyer and the deal is done. The seller should then let the DMV know about the title transfer as well as contact his auto insurance company to remove the used car from his policy.
Those who want another way of using their car to get cash might want to consider an auto title loan instead.
References:
Edmunds.com. "Quick Guide to Selling Your Car."
Craigslist.org. "About Scams."
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