5 Things Everyone Should Do When Selling a Car
You can usually turn a four-figure profit pretty easily. This is how.
Capital One
Originally published on April 16, 2019
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As an auto auctioneer, I get to sell thousands of trade-in vehicles at wholesale auctions where, on average, a dealer makes about a thousand bucks in thirty seconds once a car goes under the hammer.
Due to a combination of anxiety over the selling process and a simple lack of understanding of just how easy it is to sell a car, many sellers leave that money on the proverbial table. The truth is that it’s not hard to sell a car yourself, even a brutally bad car. What’s more is that you can usually turn a four-figure profit pretty easily, all with a clear conscience and absolutely no deceptive tactics. This is how:
Be honest—with yourself—about the price
People who are honest with themselves will have a far easier time selling a used car than the majority of the population. The reason is simple: realistic price expectations.
There are excellent online value calculators which can determine the private party value of your car...but only if you give an accurate assessment of its condition. If you’re honest with yourself, you can look at your car and be truthful about its strengths and weaknesses.
It’s easier said than done.
Does it need repairs? Does it have a few substantial dings and dents? If so, the best your car can be is average. Is it really in “mint” condition? The simple fact is that if you drive your car on a daily basis, it almost certainly is not.
Take advantage of thorough record-keeping
Maintenance records beautify your driving companion in the distrusting eyes of buyers. There is a tangible confidence that comes with having papers in hand to prove that you (as the previous owner and caretaker-in-chief) did the right thing. Handing those records to a buyer is like giving flowers to a date or an ice cream sundae to a child.
Didn’t keep your records? It’s well worth the extra effort to call the places that service your vehicle; those past expenses can turn into future profits.
The truth is out there. Show it in your ad.
The best ads on Craigslist and Facebook Marketplace are those where the seller documents everything and takes plenty of pictures
In the ad itself, mentioning recent maintenance—and all those records—should be a given. Going so far as pointing out dents and repairs is actually beneficial, too, because it builds trust for the buyer. Even if your car is just an old clunker in dire need of some serious TLC, some clunkers are treated better than others.
When you eliminate uncertainty and provide full disclosure it makes the buying process a whole lot easier for buyer and seller. The more you act in good faith, the more attractive your car becomes.
Don’t kick the bucket
Especially on older used cars, a lot of sellers have a habit of trying to unload their vehicle just before it needs a bucket list of maintenance. Essentially, they’re kicking the bucket down the road in the hope that someone else will bear the brunt of the cost. If your car is at that unique moment in its life, it’s usually worth it to let the buyer know and offer to pay for half of it.
That willingness to give and take—and be truthful with a stranger—puts your car head and shoulders above competitive cars sporting big question marks. Often, something remarkable happens, too: all those little dings and not-so-little dents that used cars typically acquire suddenly become a lot less important to the buyer.
It’s a finer point of negotiation, but honesty creates trust, and trust is what gives buyers the confidence to do business with you.
You’ve shaken hands on a deal. Now what?
A lot of people think it complicates things to sell a car (and to buy one) that still has a lien on it. It really doesn’t. Usually, you send the financing company a check for the remainder, and it then signs off on the lien and mails the title to the new owner.
If your buyer is skittish about trusting a perfect stranger to complete the process, he or she can have two checks made. One goes to the bank and, assuming you’re not underwater, the other goes to you for the balance. Regardless, the most important thing here is to just call up the finance company and follow its instructions.
