Selling your car doesn’t always need to involve a trip to a dealer. Sometimes, it may be easier to take matters into your own hands and find a private buyer.
Of course, the trick is knowing how to proceed. At Addition Financial, our members sometimes ask us how to sell a car privately and get a good deal. Here are seven tips from us and our panel of experts to help you if you decide to sell your car yourself.
#1: Clean Your Car Inside and Out
The first step might seem like a no-brainer, but it’s extremely important to clean your car before you take photographs or create a listing for it. You want potential buyers to see it in its best light.
Michael Lowe, the CEO of Car Passionate, says:
“Buyers want to see all the car's available space and a cluttered car can look smaller when messy. Next, clean all surfaces and vacuum seats and floors. Cleaning the car will show the buyer you have taken good care of your vehicle overall. Add a freshener to get rid of any odors.”
Don’t forget to wash the windows and clean out drink holders and your center console. You should also make sure to empty and vacuum your trunk.
The outside of your car needs to be cleaned as well. LeeAnn Shattuck, The Car Chick, told us:
“Consider buffing out any scratches, fixing any curbed wheels, and even detailing the engine compartment. If all of this scrubbing sounds like too much work, consider having your vehicle professionally detailed. Even taking it to the local car wash for a quick bath and vacuum will make a difference.”
The main thing to keep in mind is that potential buyers aren’t going to overlook a lack of cleanliness. Presenting a clean vehicle is a good way to send the message that you have cared well for your car and that it’s in good condition.
#2: Take Care of Necessary Repairs
The next step is to take care of any needed repairs. You might not think that fixing a minor problem could make a big difference in the price you can get for your car, but that’s not the right attitude.
Quinn Osha, the founder of TopMarq, told us a story about the potential impact of skipping small repairs before selling your car:
“The biggest tip I can give here is to fix any minor issues that the car may have. These issues tend to knock much more off the value of the car than they cost to fix. If there's an engine light on [or] any dents or scratches that can be fixed, you should tend to those before listing. One owner I worked with didn't fill a windshield crack (max $50 fix) and essentially had to discount the car by the price of a brand new windshield ($1200 on this Porsche model). This is the best way to get the highest possible sales price.”
We can’t guarantee that making small repairs will make a huge difference in the price you get for your car, but we agree that taking care of those things before you list your car will give potential buyers less to quibble about.
#3: Have Your Maintenance and Repair Records Ready
The biggest question mark any buyer has in mind when buying a used car is the car’s history. They want to know about potential issues before they arise, particularly those that may not be obvious when they look at a car.
Zach Shevsky of Your Auto Advocate offers this suggestion about how to approach selling a car:
“First, put yourself in the potential buyer's shoes. What would you want to know if you were thinking of buying a car from a private seller? As a seller, you'll want to have prepared any and all service and repair records so that the buyer can review them. You'll also want to consider purchasing a CarFax report so that you can share that with prospective buyers.”
We like the suggestion of buying a CarFax report because it’s one of the things we recommend for buyers, whether they’re purchasing a used car from a private seller or a dealer. It’s the best way to ensure you know what you’re buying. As a seller, your job is to remove objections that the buyer might have. Showing them a CarFax report will prove that your car is well cared for and help you get a good price for it.
#4: Set the Right Price
The most important step in negotiating your car is settling on the right asking price. If you do, you’ll have room to negotiate and still get a price that makes you happy.
LeeAnn also gave us some great advice about setting a price. Here are her three most important points:
- Kelley Blue Book values can provide a potential starting point, but she says “KBB values don’t mean SQUAT. Look at the actual market in your area.” A good way to get a feel for local pricing is to search online for your make and model.
- Keep in mind that “private party price is usually about halfway between wholesale price and dealer retail.”
- “Leave a little room to negotiate because people like to think they are getting a deal.” You don’t want to set your price too high, but it’s always a good idea to ask for a little more than you’re willing to take.
- Adjust your price downward if you smoked in the car (between $1,000 and $2,000 lower), if it’s any color other than white, black, silver, or gray, or if it has been in an accident.
- Be wary of setting your price too low. “You probably won’t get any calls because people will assume there’s something wrong.”
We suggest taking the lowest price you’re willing to accept and adding anywhere from
$750 to $1,000 to it for your starting price. That way, you can negotiate as needed. In addition to taking the value and condition of the car into consideration, you may also want to factor in the money you’ll spend on ads and the time you’ll spend responding to inquiries and speaking to prospective buyers.
#5: Choose the Right Place to List Your Car
Just as important as setting the right price for your car is listing it in the right place. LeeAnn offers a general guideline:
“If your car is worth more than about $5,000, consider listing it on Autotrader.com and Cars.com. If your car is worth less than $5k, save your money and put it on Craigslist and Facebook Marketplace. You get a higher quality buyer on the paid sites than on Craigslist.”
We think the advice about choosing a paid site is excellent. People who shop for a used car on Craigslist or Facebook Marketplace are likely to be searching for significant bargains. Your ads also won’t get the same kind of traffic as they will if you choose a paid site.
That said, it’s certainly not impossible to get a good price for your car if you list it on a free site. However, you may wind up spending more time filtering through buyers looking for potential red flags than you would if you went with a more reputable site.
#6: Avoid Buyers with Red Flags
One of the costliest mistakes you can make when selling your car privately is choosing a buyer who isn’t legitimate or who might be trying to rip you off.
Quinn also offered a couple of red flags that are common:
“Watch out for low ball offers or anyone looking to buy on a payment plan. [And] avoid anyone with reasons for why the money will change hands after the title is signed over.”
LeeAnn mentioned some other scams you should avoid:
“If the email from the buyer is not in good English, it's probably a scam. If they offer to buy it without talking to you or even seeing the car, it's a scam. If they ask you to verify yourself with a 6-digit code that they will text you, that's a scammer trying to use your cell phone number to set up a Google Voice number for them to use to scam other people.”
We would add that you should trust your instincts. We all have a little voice inside our heads that warns us when things aren’t right. You may be eager to sell your car but if something doesn’t feel right, it’s best to walk away and wait for a legitimate buyer.
#7: Be Willing to Say No
The final piece of advice we’ll offer is one that we’ve mentioned in previous blog posts about buying and selling a car. It is always a good idea to have a “walking away” price and then, to follow through and walk away if you can’t get the deal you want. Provided you have set a realistic price for your car, you don’t need to settle for a bad offer.
Of course, if you’re getting only low offers, it may also be a sign that your asking price is too high. Be prepared to reevaluate as needed.
If you want to know how to sell a car privately, the seven tips we’ve offered here will help you get the best possible price.
Are you in the market for a car loan? Click here to read about Addition Financial’s competitive loan options.
Posted on Aug 6, 2020
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