ALT-1 What to consider when Selling your used Car
So it's time for you to find a new home for your used vehicle. If you are not familiar with the buying and selling of used vehicles this can be a frustrating experience for you. There are many things you should consider before you get started. These are a few of the most important.
Pricing your vehicle: The first thing you will have to do is determine a reasonable asking price for your vehicle. You will have to determine the value which may be confusing to someone who is not familiar with all the variables that will come into play. You should first look up the vehicle in several used car guides. Here are a few suggestions.
Kelly Blue Book is a great place to start. It is in my opinion the most easily accessible guide which will show several different classes of valuating the vehicle. The first class is the retail value. This particular value is the highest and in my opinion the most useless value listed. It is comparable to the sticker price of a new car. Nobody expects to pay sticker for a new car so you should not expect to get retail value for your used one. The second class is the private party value which is in my opinion is the best option for individual to individual transactions. It is valued below retail but higher than what you should expect to be offered from a dealer. This value is a great starting point when determining your asking price and a reasonable expectation of what you should be paid for your vehicle. The third class is the trade in value. This is exactly as it sounds. It is an estimate of what you should expect to be offered by a dealer if you were trading your used car towards the purchase of a newer car. If you are not trading I would recommend holding out for a better offer than this figure. You can rate your cars condition and estimated value from Kelly Blue Book on line at www.kbb.com.
The NADA guide book, often referred to as the yellow book is another option. This guide is put out by the National Automobile Dealers Association. I do recommend finding a hard copy of this publication to value your vehicle. Their on line site typically only shows a low retail to a high retail value range and in my opinion is not always an accurate estimate of fair market value for a private party sale. The hard copy of this publication is a better option, but be aware that the classes of value differ in this guide than that of KBB.The first class is similar in that it is a retail value that is probably much higher than you should expect to be offered. The second value is a trade in value which differs in that of Kelly Blue Book. KBB bases their trade in values on actual cash values. NADA bases their trade in value on what a consumer should expect to receive for their vehicle when traded in on a brand new vehicle and is figured from the sticker price. This most often figures in what dealers' term as an over allowance and is often higher than the actual cash value the dealer is truly paying for the vehicle. For this reason, an offer at or near the NADA trade in value may be a fair price to consider even in a private party transaction. The third class of value NADA uses is the loan value. This figure is the lowest and is typically used by banks when determining the amount of advance they would allow when lending money using the vehicle has collateral. Banks like to be in an equity position when loaning money to protect their interest in the loan. What this means is that the loan value is usually lower than the actual cash value of the vehicle. Therefore it is strongly recommended to hold out for a better offer. NADA is most often used by banks and may have to be considered if the potential buyer is seeking to finance the purchase.
Black book is another guide to consider. This guide may be harder to find for consumers however, as it is most often used by dealers. The values in this book are wholesale values and are rated by condition. They are based solely on what similar vehicles are selling for at local auctions. Values are rated from rough to extra clean in condition. If using this guide, clean book is a reasonable asking price for a private party as dealers most often try to stay within the rough to average range with vehicles in their inventory. They often price their vehicles in the clean to extra clean range with the difference being their profit margin. If you price your vehicle within the same range you will be competitive with the dealer and the buyer most likely will save money by avoiding sales tax and dealer fees.
Once you have compared the estimated values by using the guide books, you should go on line and compare asking prices for vehicles of the same year, make, and model listed in the various vehicles for sale listings available. Several options are cars.com, autotrader.com, autoextra.com, craigslist.com, and other similar sites. I do not recommend eBay for pricing estimates as there are too many variables in the listings. Most eBay listings have a reserve and do not show what the seller truly expects to get for the vehicle. One important thing to remember when comparing prices and values is to always consider only those vehicles of the same year, make, and model with similar mileage and equipment as the one you intend to sell. Differences in these important factors can mean a substantial difference in the vehicles true cash value. You should also only consider those vehicles and values associated within your local area. Vehicle values do vary by region.
After you have determined an appropriate asking price for your vehicle, you will need to pay attention to the vehicles condition. Some reconditioning may be required to be sure you get the most return possible on the sale. Condition will be a huge factor in both the quantity and the quality of the offers you will receive. If you were looking to purchase a used car you would not like to spend a lot of money on something you will have to fix. Neither will your potential buyer. Be sure that any body damage is repaired before showing your vehicle to a potential buyer. Dings, dongs, dents, and scratches are more acceptable on older cars than newer ones. Buyers in the market for older vehicles should expect a little character, as the vehicle has experienced a lot more use than that of a newer model. Late model car buyers will be much pickier about the vehicles they look out. This type of buyer is looking to save money by buying a vehicle that has been depreciated, but they are still looking for a vehicle that appears new. Tires should be replaced if more than half of the tread has been worn off. A new set of off brand tires will look better to a consumer than more expensive name brand tires with substantial tread ware. Cracked or damaged windshields with stars or bulls eye type damage can be replaced for as little as a couple hundred bucks and will substantially increase the eye appeal of the vehicle. Interior problems such as tares or stains can be addressed relatively inexpensively by local upholstery shops and detailers. The best advice is for you to look at your vehicle as a potential buyer and determine how you would want it to look and run and make the appropriate repairs before listing it. After the necessary repairs and reconditioning are complete, the vehicle should be detailed by a professional. Most vehicles can be detailed for under a hundred bucks. A clean vehicle in good condition will receive more and substantially higher offers than one that is just parked on the curb as is.
Once your vehicle is reconditioned, cleaned and priced it is time to decide how and where to market it. The best place to start is your local papers classified section. Classified ads are very inexpensive and will reach a lot of potential buyers that are local to you. Next you should consider placing photos and flyer's on bulletin boards at your work place and around town at establishments such as local diners, insurance offices, convenience stores, and for that matter anywhere the proprietor will allow you to post it. The more places your vehicle is subject to be seen the more offers you are subject to receive. The inter-net has become the place to advertise anything you may have to sell. Consider the sites that you researched when pricing your vehicle. Listing your vehicle with these sites will dramatically increase the amount of responses you will receive. Be aware however that listing your vehicle on the inter-net will subject you to obstacles such as distance from your potential buyers and potential scammers responding to your ad. You must insist that potential inter-net buyers agree to complete the transaction in person and not through a third party such as a mover or delivery company. Also be sure that payment terms are of verifiable funds. Potential buyers who do not agree to these terms most likely don't want you to know their true identity and provide for a very unsafe transaction. Do not let this discourage you from using the inter net as a source to market your vehicle however, as there are thousands of successful inter-net transactions completed every day. Just be aware and be careful when using this source of advertising.
So there you have it. by now you should have a better understanding of how to determine the value and appropriate asking price for your vehicle, what you should do to get your vehicle ready to sell, and where and how to market it. Good luck and good selling!
