The sales process is more complex than you think. You need to be fully ready and a strategic seller to successfully close a deal. Here are the essential steps to consider when selling a car.
If you are a beginner, this useful and informative video can provide more insights:
1. Selecting an Option for Selling a Car
The first step to do if you want to put your vehicle on the market is to decide how you will sell it. The value of your car will vary depending on the method you’ll choose.
The advantage of using car trade-in is that it is fast and convenient. In this way, you trade your old car for a new one. You also don’t need to pay for selling and listing. No communication is required, such as texts, emails, and calls. There is also a possibility that you may pay fewer sales taxes on your new car.
Selling It Yourself
The advantage of this method is you are going to negotiate with the buyer yourself. You can receive more payment as you can set the price yourself. You will also be able to save money as you will not have expenses for dealer overhead.
Using Instant Cash Offer
Using an instant cash offer is quick and easy. You can redeem your money immediately at a local dealer. No obligations are involved.
2. Collecting Documents
Gathering your vehicle’s papers is one crucial step in the selling process. It will be best for you to look first at your documents before offering them to the market.
What Documents Should You Gather?
It is important to know the essential document to avoid missing anything. The following are the papers you’ll need to collect:
Keep your car title in a safe place, as this will be proof that you own the vehicle. It is vital, especially if you are selling your car.
Showing your service records to potential buyers is an excellent way to show them how your car is well cared for. Such documents can increase the sales price of your vehicle. If you haven’t kept any of the receipts, you can ask for a statement from your mechanic, dealer, and regular oil change center.
-Original Sales Documents
You should know your car’s basic information, such as year, model, make, and current mileage. Its trim level and optional high-selling features are also crucial to know. Such info can increase the resale value, so you should have a complete list. If you think you are missing something, check the original sales papers or window sticker.
-Vehicle History Accident Report
This comes in handy in case your car is involved in some kind of accident. Buyers tend to ask questions about it, and it would be great if you are ready to answer those. Having a vehicle history accident report would also be helpful for you.
3. Preparing to Sell Your Car
You may want to check your car for any broken parts. It is best to have such things fixed before selling them. You can also increase your car’s sales value by having it cleaned professionally.
In the interior, have all the personal items removed and make sure to shampoo the carpet. The dashboards, seats, and mirrors should be cleaned. Also, put a shine on surfaces.
For the exterior, be sure to remove the stickers and magnets. Any dents, cracks, and scratches should be repaired. Replace the broken lights, too. Determine the condition of your brakes and tires and see if they need to be replaced.
4. Setting the Sales Price
The value of your car will depend on its current condition. In determining the sales price, be realistic. It would be difficult to sell your car if you have an unrealistic price.
When to Set the Car Price Higher?
Suppose your car is under an extended warranty and is transferable. In that case, you can set the price higher: warranty is an important factor in the total cost.
It would be great to keep your car under regular maintenance because it can also increase the sales value.
-New Tires or Brakes
Installing a new set of brakes and tires would increase the total value of your car as they provide better grip and handling.
When to Set the Car Price Lower?
Lowering the sale price would help if you would like to sell the car immediately.
-In Need of Maintenance
If there are issues with the car and effective service is necessary, it could lower the value of your vehicle.
Being involved in an accident would definitely lower the sale price of your car.
5. Advertising Your Car
After all the preparations you have done, it is now time to put your car into the market so people can see it.
Tips for Advertising Your Car
-Have a Brief Description
Your car’s description should include its most in-demand features like low mileage, warranties, and specifications.
-State the Purpose of Selling
Buyers would be most curious about it, so mentioning why you want to sell the car is helpful.
-Make a List of Your Car’s Condition
Make sure to list your car’s current condition, as buyers would definitely ask about this. Also, don’t forget to list its VIN.
-State Your Selling Price and Negotiate Terms
When stating your selling price, you can give the buyers an explanation. To help you target buyers, determine whether the price is firm, negotiable, or the best offer.
-Put Your Payment Options
Do not forget to include the payment options that you accept so the buyers will know beforehand.
Putting high-quality photos to showcase your car will attract more buyers. Include photos in different angles and enable zoom-in.
6. Safety Tips in Selling
Here are some ways to have safe and secure transactions:
-Meet up in a Safe Area
When having meetings with potential buyers, setting up the location in safe places such as parking lots with security cameras is better.
-Bring a Companion
One tip you may consider is bringing a friend when having a test drive or selling the car so you have someone to help you in case unexpected things occur.
-Getting An Escrow Service
A third-party service called escrow service holds the buyer’s payment until the deal is closed. This is to ensure protection for both parties against fraud. Beware of fake escrow services and always verify the agency first before agreeing to anything. Discuss also with the buyer who would pay for the escrow service fee.
-Legal Payment Forms
If possible, you should stick to online payments or consider using money orders and checks from banks or credit unions.
7. Setting Up for a Test Drive
When setting up a meeting for a test drive, arrange the location in a safe area. When being asked during the event, simply respond to their questions and avoid impulsive answers.
Creating a Safe Test Drive
The following are some tips that might be helpful to you:
Discuss the test drive with your potential buyers and tackle both of your limitations. Being comfortable with each other is a great way to close the deal successfully.
-Having a Company When Test Driving
Plan the test drive to be short and stay away from populated areas. You can ask the company to provide an escort car to get directions between places.
-Checking Your Auto Insurance Coverage
It is essential to check if your auto insurance coverage covers any test drive before agreeing to do one. Also, see if the buyer has a driver’s license and take a picture of it in case something happens.
8. Closing the Deal
After doing the test drive, your potential buyer might close the deal already. You can let them make the initial offer and then negotiate slowly. Before agreeing to the deal, determine the payment method, whether it is cash or cashier’s check.
After that, you’ll usually sign and date the title. You should also give the buyer a bill of sale which verifies that you sold the car to them under the terms and conditions you both agree with.
Having basic knowledge and skills in selling your car can ensure a safe and successful sale. By following the tips and steps mentioned above, you can get the best deal for your vehicle.
If you find this article helpful, you can also try reading these:
- Top 10 Questions To Ask When Buying A Used Car
- Car Owner’s Guide: How To Get The Cheapest Car Insurance Rates
- Ranking The Most Affordable Cars To Insure In 2021
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