Selling your Car? Here's How to Get the Highest Price...
If you've ever tried to trade a car in at an automobile dealership, you know how little they will offer as a trade-in. They're not being greedy; used cars are an important revenue generator in a business that is lucky to eke out 5% profit on new car sales operations. Typically, when a car dealer takes a car on trade, they will buy it for the wholesale or 'black book' price, do whatever repairs are necessary to sell it, and then price it to make as much money as the market will bear.
If you're the kind of person who would prefer to keep that spread (market price minus wholesale value) for yourself, you may wish to sell it privately, and typically get 20-50% more for it than you would trading it in. If you decide to go this route, here are a few tips to help you navigate the sales process, maximize your car's value to a potential buyer, and avoid Internet scam artists.
1- Remember the rule; if it seems too good to be true, it probably is. Very few people are willing to buy something sight unseen. If someone offers you money for a car without seeing it, there better be a good reason (like it's a 1959 T-Bird in primo shape, and you're only asking $8,000 for it). If you're trying to sell a 1999 Neon for $4,000 and someone who works offshore wants to buy it without so much as a test drive, they're probably just baiting the hook for a phishing scam. If you have a particularly rare or collectible car, or you live outside of the 'rust belt' you may receive inquiries from abroad, but serious buyers will have no problem speaking to you on the phone, sending you a small deposit, and then paying cash for the outstanding balance in person. Don't be scammed by Internet criminals.
2- Most people find other people's 'people stuff' pretty gross. Make sure that your car is devoid of any food wrappers, hemorrhoid pillows, Ikea receipts, or anything that suggests that your car has been owned and driven by a human. A potential buyer is interested in your car, not your life.
3- Most people want a new car. The newer your car looks, the more money you'll get for it. The easiest way to make a car look new is to make it clean and solid. This is especially important for the car's interior. Give the car a wash and wax. Your carpets should be spotless, and your seats free of stains and dirt. The closer you can approximate that new-car feeling, the more value a buyer will assign to your car. If there are any mechanical problems with the car, fix them, or be upfront about them with potential buyers; fixing is usually better. Also, make sure that your wheels and tires are balanced. Nearly-flawless cars can come across as junky when they have improperly balanced wheels. Smooth and steady wins the race.
4- Know your market. The better you know who your potential buyers are, the better you'll be able to tailor your advertising message, and 'key selling points.' For example, if you're selling a Ford Escape, and you believe your primary target buyers are older adults, stressing the Escape's off-road ability is less important than it's high chair height, and easy egress.
5- Know your car's value. What's your car worth? It's worth exactly what someone is willing to pay for it. Before you place an ad, you'll be able to get a ballpark figure by searching for similar cars currently for sale (same make, model, and mileage) in your local area. Dealers typically charge more for cars than private sellers, so take their asking prices with a grain of salt. Remember that your car's mileage is more important in determining its value than its year of production.
6- Price your car to sell. Remember that just because you'd like to sell your 1995 Neon for $6,500 it is unlikely that you'll find anyone willing to pay that much for it.
7- Take good pictures. Ads with pictures receive between 70-90% more interest than those without (depending on whom you ask). Take at least four pictures of your car, from various angles, and make sure one of them is a front 3/4 view. Here are four good examples:
If you're the kind of person who would prefer to keep that spread (market price minus wholesale value) for yourself, you may wish to sell it privately, and typically get 20-50% more for it than you would trading it in. If you decide to go this route, here are a few tips to help you navigate the sales process, maximize your car's value to a potential buyer, and avoid Internet scam artists.
1- Remember the rule; if it seems too good to be true, it probably is. Very few people are willing to buy something sight unseen. If someone offers you money for a car without seeing it, there better be a good reason (like it's a 1959 T-Bird in primo shape, and you're only asking $8,000 for it). If you're trying to sell a 1999 Neon for $4,000 and someone who works offshore wants to buy it without so much as a test drive, they're probably just baiting the hook for a phishing scam. If you have a particularly rare or collectible car, or you live outside of the 'rust belt' you may receive inquiries from abroad, but serious buyers will have no problem speaking to you on the phone, sending you a small deposit, and then paying cash for the outstanding balance in person. Don't be scammed by Internet criminals.
2- Most people find other people's 'people stuff' pretty gross. Make sure that your car is devoid of any food wrappers, hemorrhoid pillows, Ikea receipts, or anything that suggests that your car has been owned and driven by a human. A potential buyer is interested in your car, not your life.
3- Most people want a new car. The newer your car looks, the more money you'll get for it. The easiest way to make a car look new is to make it clean and solid. This is especially important for the car's interior. Give the car a wash and wax. Your carpets should be spotless, and your seats free of stains and dirt. The closer you can approximate that new-car feeling, the more value a buyer will assign to your car. If there are any mechanical problems with the car, fix them, or be upfront about them with potential buyers; fixing is usually better. Also, make sure that your wheels and tires are balanced. Nearly-flawless cars can come across as junky when they have improperly balanced wheels. Smooth and steady wins the race.
4- Know your market. The better you know who your potential buyers are, the better you'll be able to tailor your advertising message, and 'key selling points.' For example, if you're selling a Ford Escape, and you believe your primary target buyers are older adults, stressing the Escape's off-road ability is less important than it's high chair height, and easy egress.
5- Know your car's value. What's your car worth? It's worth exactly what someone is willing to pay for it. Before you place an ad, you'll be able to get a ballpark figure by searching for similar cars currently for sale (same make, model, and mileage) in your local area. Dealers typically charge more for cars than private sellers, so take their asking prices with a grain of salt. Remember that your car's mileage is more important in determining its value than its year of production.
6- Price your car to sell. Remember that just because you'd like to sell your 1995 Neon for $6,500 it is unlikely that you'll find anyone willing to pay that much for it.
7- Take good pictures. Ads with pictures receive between 70-90% more interest than those without (depending on whom you ask). Take at least four pictures of your car, from various angles, and make sure one of them is a front 3/4 view. Here are four good examples:
8- Sell your car like it's your job. If you've ever bought a car before (and since you're selling one, you probably have) you know that car sales people are friendly, gregarious, and willing to let you take your car for lengthy drive to become comfortable and familiar with it. Take your prospective buyer on the highway, down city streets, etc. Tell them about some of the key features that you've enjoyed (like the ice-cold AC on a hot day) or the great reliability. One trick that car salespeople use is driving the car first, explaining/ selling it while they drive, and then passing it over to the prospect and sitting in silence to allow them to enjoy the drive. Everyone sells differently, but the key thing to remember is to try to figure out your customer's 'hot buttons' and stress how your car will push them.
9- Don't ever seem desperate. Car sales eventually lead to negotiation, and desperation undermines your bargaining power. Even if you positively need to sell your car that day, don't let a buyer know that, and don't give away more than you have to. If you've followed steps 1-8, your car will probably already be the nicest one the buyer has seen that day.
10- Don't become another victim. If you strike a deal with a buyer, don't be afraid to ask to go with them to their bank with the car's ownership/ title in hand, and obtain the certified funds (bank draft or cash) directly from the bank. You can then sign over the car's ownership at the bank, give the new buyer his or her keys, and rest assured that you've done everything humanly possible to avoid check fraud.
9- Don't ever seem desperate. Car sales eventually lead to negotiation, and desperation undermines your bargaining power. Even if you positively need to sell your car that day, don't let a buyer know that, and don't give away more than you have to. If you've followed steps 1-8, your car will probably already be the nicest one the buyer has seen that day.
10- Don't become another victim. If you strike a deal with a buyer, don't be afraid to ask to go with them to their bank with the car's ownership/ title in hand, and obtain the certified funds (bank draft or cash) directly from the bank. You can then sign over the car's ownership at the bank, give the new buyer his or her keys, and rest assured that you've done everything humanly possible to avoid check fraud.
