There are many ways to sell a car, but we’ve identified the top three options for you. Whichever you choose depends on how much time and effort you intend to spend on the process and how much you want out of the sale. 

Preparing the Sale

Before setting out to do the actual selling, you need to prepare several things.

• Gather your car’s documents – its title, registration papers, owner’s handbook, servicing record, maintenance and repair receipts, safety certificate if registered (and if you plan to advertise it), and others.
• Have its specs and description ready – you will need this for purposes of advertising, appraising the car’s value, or getting quotes from car traders later.
• Prepare your car – have it cleaned, repaired (if needed), and detailed to improve its appeal to buyers. 
• Price your car – you may refer to the Kelley Blue Book or online price guides like the tool you find in the Royal Automobile Club of Queensland website. You may also get a ballpark figure from local advertisements for cars with the same make, model, year, and condition as your car. Buyers will negotiate the price, so account for this ahead of time by starting with a slightly higher price.

Ways to Sell Your Car

The most profitable way to dispose of your car is through a private sale, but it also takes the longest route. On the other hand, if you’re planning on buying a new ride, you may opt to trade in your old car at a dealership and pay lower for the new one. Otherwise, if you’re only interested in cashing in quick on your vehicle and not trading it in, you may sell it to a dealer or car trader. You earn the least with the last two options because the dealership or trader’s purpose is to gain profit from the sale by reselling your car to a final buyer at a higher price. 

Let’s weigh these options and see how each one works.

1. Trade-In 

The advantage of trading in an old car for a new one is the seamless process and ease with which you dispose of a vehicle and buy another. It is convenient and does not require transacting with a lot of people or preparing more than the basic paperwork. 

The upside is, you don’t need to spend on repairs to attract buyers or bother with advertising, handling buyer issues, and securing safety certificates, among the many things a seller has to do. Trading in will help fund your new acquisition with practically no effort from you. The downside, however, is that it’s the dealer who profits from the sale of your car. 

2. Sell to Used Car Dealers

Dealerships may also pay cash for your used vehicle even if you don’t intend to trade it in for a new car. It’s another stress-free way to get rid of an old car, with the dealer handling all the paperwork. Most of these car traders have websites, which initially evaluates your car online based on the information that you provide. They will then give you a quote. Shop around several dealerships before choosing the one with the best offer.

Drive up to the dealership for instant cash. The actual value may be less than the initial quotation, depending on how truthful you were with the information you provided online.

3. Sell Privately

This method proves to be the most profitable, but you can expect it to require a lot of work and consume considerable time. Here are the steps:

Advertise

Advertising takes many forms. The traditional way would be by word of mouth. You may also park your vehicle by the curbside and put up a ‘for sale’ sign. Before doing this, make sure that regulations in your locality allow displaying and parking for-sale cars on the roads. 

To reach more buyers faster, however, you should increase your marketing efforts several notches higher. Advertise on your local papers and online marketplaces, like Gumtree, Craigslist, and CarPart. 

Specialised or automotive-dedicated sites like Carpart.com.au have an advantage over general marketplaces like Gumtree or Craigslist. With CarPart, the viewers are your intended market – these are people who are interested in cars. To post an ad at CarPart, make sure to sign up first or send an email to enquire. 

Devote some time to create an attractive ad. Take clear photos, write all necessary details like make, model, year, and mileage, and provide additional info that a buyer may want to know, such as a ‘clean title’, ‘newly-serviced A/C’, and other applicable descriptions.

Screen prospective buyers

Don’t forget to provide your contact details. It’s a good idea to create a separate email exclusively for this transaction and to direct all calls to a voicemail. This way, you can filter out the obvious scammers and time-wasters. Respond only to those who sound like legit buyers. It's better to err on the side of caution than be sorry later. People who drive a hard bargain even without seeing the car could be middlemen trying to make a profit by buying the car dirt cheap from you.

Meet up for a test drive

When a potential buyer asks for a test drive, meet up in a safe, public place. Ask for a driver’s licence and accompany him or her during the drive. Bring along a friend or neighbour for good measure. 

Negotiate and close the deal

After the test drive, negotiation usually takes place. After you agree on the final price, you close the deal by signing the sale agreement, accepting the payment, and turning over the car and its ownership transfer documents. Tie the loose ends by transferring the vehicle’s registration, filling out forms with the Department of Transport, contacting the insurer, and notifying the toll company if you have an account with it.

Bottomline

The method you choose depends on your objectives and situation. If you want to profit from the sale, you should sell privately or directly to the buyer. Just make sure that you have the time to do all the preliminaries and the patience to deal with the inconveniences. The reward, of course, is the significant profit that you earn. 

Explore all your options and see what CarPart has to offer to sellers. Additionally, if you have an old car that’s no longer roadworthy, you may want to sell it for parts. Please send us a message, or better yet, register to get full access to the advertising tools for sellers.

By JMSL