How to Sell a Car

If you need to sell a car, you should consider taking the time to sell it privately rather than at the dealer.  You are most likely going to get more for the vehicle from a private buyer, which allows you to keep negotiations simple when you’re buying a newer car.

Research Your Car’s Value

You might be surprised what your car or truck will sell for.  A lot of things can affect the sale price of a vehicle, including time of year, the local economy, number of vehicles for sale in your area and even the style and color of your car.  Vehicles that hold their value, like trucks, vans and cars with high MPG, should be priced competitively.  Be sure to research what comparable vehicles are selling for and used Kelley Blue Book and Edmund’s TMV to find the appropriate starting price to list your car.

Clean The Car Thoroughly

Sure, a dirty car can sell, but a clean car can command a higher price and shows the buyer that you’ve taken good care of the vehicle.

• Thoroughly clean exterior.  Bugs and tar aren’t selling points, so spend some time cleaning the front bumper and grill with detail.  Applying a coat of wax doesn’t hurt if you have the time.
• Clean off brake dust from tires and rims.  Spray tires with tire gloss (Armor All interior shine works too)
• Vacuum all carpets, including trunk and underneath seats.
• Clean all glass surfaces.
• Use odor-killing cleaners and place an odor neutralizing air freshener in the car for a few days.
• Clean all vinyl parts of car – dash, console, door handles, trim work.  Then apply Armor All for that ‘new car’ look and smell.

Get Organized

• Gather all your receipts and maintenance records to show prospective buyers.  If they see that you’ve taken excellent care, they may be willing to pay more of a premium for the vehicle.
• Have a bill of sale prepared.  You can find a sample bill of sale here.
• Find the car title and complete properly.
• Print a Car Fax of your vehicle to show history.

Where to List Your Car

• Online – Autotrader.com, Yahoo Autos, Edmunds.com, cars.com, craigslist
• Local newspapers and bargain sales papers
• Bulletin boards, office break rooms, and college campuses
• Display for sale sign in windows – write price in large text so it’s visible from the road

Completing the Sale

Cash or cashier’s check is the best way to accept payment for a vehicle.  Check with your state’s DMV to find out the procedures for transferring the title and plates.  Sometimes a car’s plates will actually go with the car to the new owner; in other states, you must remove the plates.

If you own the car outright, you can sign over the title to the new owner and they will present it to the DMV to be reissued to them.  If you have a car loan, you’ll need the bank or credit union to release the car title to the buyer.  It’s often easy to complete the transaction at the bank, but if that’s not an option, you should call ahead to the financial institution holding the title and let them know you’re selling the vehicle.

Always sign a bill of sale and disclose anything you know about the car before selling it.  In most states, sales are final and ‘as is,’ meaning that even if the car breaks down the next day, they cannot come after you – unless there was proof that you knowingly deceived the buyer.

Don’t forget to remove all your personal items from the car as well.  Everything should be cleaned out before you let people test drive the vehicle, but make sure you don’t forget to remove the plates if required by your state.  Be sure to also let your auto insurance provider know about the sale so that you can cancel coverage on the vehicle and start it on your new car.

Bonus tip

Try not to sell a car to a family member or friend.  While you might be trying to do them a favor, you might be asking for trouble.  If something ever happens with the car (mechanical or other failures) you might not hear the end of it from the person buying it.  The last thing you want is for a car mishap to get between you and a friend or family member.  There are plenty of buyers out there in need of a good used car, so list it on the market and do your best to negotiate a good price.

Have you ever listed a car for sale?  What advice would you give to someone selling a car for the first time?

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