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If you’re looking to sell a used car, there are many options available, but not all of them will be right for you. Used car selling methods vary dependent on how old the car is and what its worth, which is why we have produced a step-by-step guide to selling a used car, to show you your options and help you make an informed decision.
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Step one – consider a trade-in/part exchange
If you’re looking to sell a used car then chances are you already have a new car, or at least you’re looking to buy. If the latter is the case you may wish to offer the dealer your old car as a trade-in to help cut your monthly repayments. However, most dealers prefer it if you don’t offer a part exchange – unless the car is genuinely valuable, in good condition and with few miles on the clock. Consequently, selling your car privately will nearly always earn you more cash – but there is more hassle involved.
Step two – selling when you still owe on a car loan
To sell a car you still owe money on is a more difficult process as the lender will hold the title. Normally you can pick up the title after a sale is agreed – but you do need it to complete the sale. In order to get the title, you must be able to pay off the loan. So for example if you owe £5,000 on a loan and sell the car for £3,000, you must be able to make up the £2,000 shortfall. Otherwise, the sale cannot be completed. If you can make up the shortfall and agree a pay-off figure with the lender, they will normally send you the title within a week, which you then sign over to the buyer.
Step three – know the market
Once you have made the decision to sell privately, use online directories to familiarise yourself with what’s available on the market. Select the year and trim level of your car and find out the location of other vehicles of that type that are selling, along with their condition and mileage.
Step four – sell at a competitive price
By examining the market and gaining perspective on what used cars of the same make and model, of a similar age and in a similar condition, are selling for, should give you an idea of a competitive price for your own used car. Carcraft.co.uk also has an online form which gives you an impartial valuation of your vehicle based on its age, registration and mileage.
Step five – know when to sell
In the past it was often the case that convertibles sold in the summer, and off-road vehicles sold best in the winter. However, as convertibles now have well-engineered drop-tops and off-road vehicles have increased in popularity there isn’t much variation throughout the year. The peak time in the car market is around the introduction of new car registrations at the beginning of March and September, which creates a knock-on effect in the used car market. Generally speaking, cars are easier to sell in the summer and when the weather is good because people are less likely to want to view a used car during bad weather.
Step six – know where to sell
Advertising is the key to attracting interest in your used car. In the past, a ‘for sale’ sign in the window and a newspaper classified were the preferred sale methods. However, neither of these selling methods have the same scope as listing your car online. Instead of the few hundred who scan a newspaper classified, you are appealing to thousands, if not millions, of prospective readers online who are visiting websites with the purpose of researching a car. Advertising online is usually cheap with a fixed price and your car usually remains online until it is sold – so it’s well worth the effort. Alternatively, you could try an online used car auction, which is increasingly popular. Selling costs are low and they have a large audience, although there are some time-wasters. Visit carandvanauctions.co.uk to find out more.
Step seven – prepare for the sale
If you are advertising online it’s a great idea to include pictures of your car, and wherever you’re selling it you should wash it and wax it, and clean it thoroughly on the inside too or you risk putting off buyers. Some dealers suggest that an £80-£100 professional valet can add as much as £300-£400 to a car’s value. Ensure all the fluid levels are topped up to show you care for your car and have maintained it appropriately. It could be worth getting a professional to fix any minor bumps and scrapes and you should have all the necessary paperwork to hand.
Step eight – dealing with the buyers
Always accompany a buyer on a test drive – partly to make sure they come back but also so you can address any concerns as they arise. Let them dictate the roads they take so they have no need to be suspicious of your choices. If they want to carry out a professional inspection, let them – if they’re willing to spend money on the car it shows they are interested. When it comes to haggling, have a price in your head beforehand and remember that your car is worth the fair market value that you have researched no matter how much money the buyer brings with them. Declining a sale over £50 might not be worthwhile, especially if you have to re-advertise, but you should be firm and polite. Never say the price is non-negotiable though as buyers are likely to just walk away.
Step nine – beat them to it
One of the main reasons that buyers reject a vehicle is the fear that something has gone wrong in the car’s past, or that you have adjusted the mileage. So why not give them a copy of the vehicle’s auto history report as soon as they arrive, to show you have nothing to hide?
Step ten – beware of theft
Always be wary that a ‘buyer’ could simply be checking your car over with the intention of stealing it at a later point. Never let them test drive on their own, do not leave keys lying around, and do not invite them into your home.
Finally, once a price has been negotiated you should sign over the title as soon as possible to avoid liability in case the buyer has an accident. Remember to contact your insurance company to cancel your policy.
Hopefully you now feel well equipped to sell your used car. Always use your intuition to evaluate prospective buyers and avoid selling to anyone you are uncomfortable with. Advertise online and be honest with both yourself and the buyer to avoid repercussions. Good luck with your sale!
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