Service Cars

6 Steps to Selling Your Car

Step 1: Know the 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.
SUVs are very popular right now and often move quickly, even older models.



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. Dont 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.

Step 2: Price Your Car Competitively

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 wont 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 doesnt sell well at $20 might jump off the shelf at $19.95.

On the other hand, as a private party seller, you dont 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.

Step 3: Where to Advertise Your Car

Now that your car is looking great and running well, its 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 wont 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.

Step 4 : Showing Your Car

Keep in mind that when you sell your car, people will also be evaluating you. They will be thinking something like, "Heres the person whos 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 cars 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, dont do business with them. If you dont 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 persons 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, whats really wrong with the car?" If you get this, refer them to the mechanics report or invite them to look over the car more carefully.

Step 5: Finalize 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, its 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 (its customary to request either cash or a cashiers check), record the odometer reading and sign the cars 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 cars 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.

Step 6: 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 buyers 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.
source :edmunds.com