How to Sell Your Car Privately: 5 Tips to Simplify the Process Whether you’re looking to trade in or dump your car to take advantage of higher used car values, selling your car privately can make you more money than trading it with a dealer. But the financial gains come with some trade-offs. You will need to dedicate more time and effort to the selling process, and there is more risk involved in screening potential buyers, doing a test drive and taking payment. Learn how to navigate each step of the process to make sure the extra effort pays off.
How to Sell Your Car Privately: 5 Tips to Simplify the Process
1. Determine the value of your car
Many factors the vehicle’s age, mileage, and condition are important, but external variables including market conditions, fuel prices, and brand appeal also play a role. For example, this has caused a huge rise in used-car values, especially for older vehicles: Among Cars.com dealers, the median price for a 10-year-old used car (model year 2012) was $16331 as of July 2022. By comparison, The average price for a 10-year-old car (model year 2010) was just $8,995 in July 2020. To determine the value of the car, look at listings of similar used cars or get a vehicle rated by a dealer or used chain such as Autos.
2. Create an ad to connect with shoppers
How to Sell Your Car Privately: 5 Tips to Simplify the Process
3. Prepare the papers
Selling in particular requires more thought when it comes to paperwork than trading with a dealer who would normally handle the move. You will need to have everything including the title of the vehicle and the bill of sale, which serves as a receipt for the transaction; A bill of sale is recommended for a private vehicle sale and may be required in select states. If you are still in possession of the lien holder, you will need to contact the lender for the bonus amount and instructions to complete the transaction.
Although not mandatory, collecting additional documents such as maintenance records and extended warranty details may make the vehicle more desirable, helping you get the most money for it or sell it faster.
4. Sell it Safely: Test Drive and Pay
How to Sell Your Car Privately: 5 Tips to Simplify the Process
When setting up a, speak with the potential buyer over the phone, arrange a meeting place in a public place and take a friend with you, if possible. If the shopper insists on taking the driving test alone, be sure to get a picture of his driver’s license information before handing over the keys.
Once you have an acceptable offer on the table, you will need to pay securely. Inform the buyer of your preferred method of payment – a cashier’s check or cash is preferred because personal checks have a higher risk. Never accept a check in excess of the asking price for a vehicle. A common scam involves the buyer sending a check in excess of the purchase price and asking the seller to return the difference to them (these checks are usually fake). Do not transfer the vehicle until you have received the full cash payment or the buyer’s check has been cleared.
5. Connect the loose ends
Some special selling scenarios require a few extra steps to complete the transaction. In the event of a buyer out of town, you will need to arrange to pick up the car or consider using a car delivery service to pick it up. Prices vary based on transportation length and vehicle weight, but you can expect them to cost between $1,000 and $2,000 on average.
In most states, vehicle license plates are required to stay with the seller, so you’ll want to remove them before handing the vehicle over to its new owner. -Requires license plates to remain with the vehicle.
Selected states also require the seller to notify the Motor Vehicle Administration within a specified number of days after the vehicle is privately sold. For example, California gives sellers five days to complete a Notice of Transfer and Release of Liability form, while Illinois requires sellers to complete a Notice of Sale form once the vehicle sale ends. Check with your state’s DMV for any paperwork requirements for selling a private vehicle. Finally, notify your insurance company and request that the vehicle sold be removed from your policy.
