ALT-1 Selling a used Car
Has the lure of having a new car put you in the position of needing to sell a vehicle? Or maybe you've got a car in driveway that you want to sell? Whatever your reason, weighing whether to sell your car privately or to a dealership requires some research on your part.
Selling a car privately will almost always net you more money than a dealership sale. However, private car sales require some effort. You'll need to research the value of the vehicle, clean it, have it checked out by a mechanic, and do the legwork to find a seller. Your effort pays off in more money in your pocket.
The easier road involves selling your car to a dealership. Whether you choose to trade in or sell your vehicle to a dealer, you still want to get the most possible money for your car. This choice requires research and effort but generally involves less hassle. You won't be getting maximum dollar amount for the car. Dealers make money by buying used cars low and selling at a higher price.
Whatever your choice, you'll need to do some research to protect yourself. Both a private sale and dealership sale involves negotiation. Arming yourself with potential selling prices will make the whole process go smoother and protects you from losing money on this major sale.
Deciding your car's true worth requires honesty. You'll need to assess your vehicle inside and out. How do you do this? It's really not difficult, especially with the wealth of information on the Internet. Sites abound on the web to help you gather information for selling your car. It's recommended that you research your car's value on at least 2-3 of the following sites:
www.edmunds.com (Edmunds New and Used Car Guides)www.kbb.com (Kelley Blue Book New and Used Car Guide)www.nadaguides.com (Nada Guides New and Used Car Pricing)
These sites will give you an accurate picture of the value of your car. All are respected sources used by buyers and sellers for vehicle pricing and information. Prices differ slightly by site. This is an important tool for you to find the range of pricing for your negotiations. Remember to print out any information on your vehicle.
Car pricing basics
Car pricing sites will tell you the retail price a dealer will use for selling your car. You can readily compare this against the private selling price. The choice is yours. Selling quickly to a dealership is a no-fuss situation. If you want top dollar, consider a private sale. Make sure the difference in dollar amount is worth the time and trouble.
Various pricing terms exist on many of these sites. In general, retail price refers to the cost to buy the car off the dealer lot. Trade-In is the vehicle value if you trade it to the dealer for another car. Private sale refers to the price of the vehicle if sold to a private individual.
Appraising/Evaluating your car
The hardest part of selling any car is honestly appraising the condition of your car. It will do you no good to mislead yourself or a potential buyer. Be truthful in your assessment.
There's an established grading system for evaluating the condition of a car. The following gives you a good look at the basic breakdown. All categories are generally the same between the three car pricing sites.
Excellent condition (high retail)- Less that 5 percent of vehicles fall in this category. Think high performance and custom cars. This car looks like new, has no blemishes or rust, and runs perfectly with no mechanical issues. The title is clean and it will pass emissions and state inspection. The engine is clean with no leaks and service records are complete. Mileage is low.
Good condition (clean retail)-The majority of the vehicles fall into this category. The wear on a car should equal the age of the vehicle. Glass and tires are in good condition and all power options work properly. The car has a clean title and no major mechanical problems. There's little or no rust on the car and only minor blemishes on the paint. Some good vehicles need to be reconditioned before selling.
Fair condition (low retail)-This category reflects a vehicle with excessive dents and visible wear and tear. It requires mechanical work but still runs reasonably. Paint, bodywork, and new tires might be needed. This car should have a clean title history.
Sell privately or to a dealer: what to do?
If you choose to sell to a dealer, do this:
- Research your vehicle value on Edmunds, Kelley Blue Book, or Nada Guides and print out your results.*Settle on an acceptable price range.*Clean the car thoroughly inside and out. If you don't want to do this yourself, consult a car detail service. This is money (and time) well spent. A clean car sells better, always.*Take the car to the dealer and negotiate the selling price.*After the sale, cancel insurance and return the license plates, if necessary.
If you choose to sell your car privately, do this:
- Research your vehicle value on Edmunds, Kelley Blue Book, or Nada Guides and print out your results. Keep this handy for negotiating with potential buyers.*Settle on your price range.*Advertise your car with a sign, local paper ad, or an online car site. Provide a complete list of features and be honest with any issues. Include a picture.*Field calls and questions on your vehicle. Set up test drives. Make sure to have family or friends with you to help with this process.*Once you have a buyer, create a receipt including all pertinent car information and that you are selling the car "as is." Have both buyer and seller sign the receipt and provides copies to each.*After the sale, cancel insurance and return the license plates, if necessary.
