Selling a second-hand car can cause a fair amount of stress. You want to get the most you can for it, but determining what it’s worth and how to best sell it for top dollar can be a confusing experience. Don’t worry, we’re here to help guide you through the ins and outs of making the most of the car-selling journey. You’re not the first person to feel completely lost when it comes to selling an old clunker, so today you will learn how to sell your used car without (much) hassle.
The process of selling doesn’t need to be difficult or painful. Armed with the knowledge of how to properly value a used car, how to boost its price, and where to sell it, one can dramatically turn an unpleasant situation into one of ease and confidence.
What You’ll Need to Estimate Your Car’s Value
Before you can sell your used car, you’ll need to estimate its value. Sure, you can willy-nilly come up with a price, but you’ll run the risk of either over or under-pricing it. With an incredibly high asking price, you most likely won’t get any interest, even from tire kickers. If you’re looking to unload it quickly for fast cash, wouldn’t you rather get the most you can for it?
Before you can estimate your used car’s value, you’ll need to obtain some fairly easy-to-find information. Without this basic information, determining the car’s value is difficult. The more accurate your information is, the more reliable your estimate will be. Here’s what you’ll need.
Year, Make, and Model are the definite factors that determine a car’s value
This information is easy to find and you most likely already have these details. If you’re uncertain as to what the make and model of your vehicle is, take a look at your owner’s manual. If you no longer have the manual, a quick look at the rear of the vehicle can usually clue you into its make and model.
Another option is to plug in the VIN (vehicle identification number) into any of the many online car databases. Once entered, you’ll see all the available information for your car.
Even Color can affect a car’s resale value
Oddly enough, the car’s color can sometimes increase or decrease its resale value. You may not feel as if color is that big of a deal, but it is. If your car is painted a color that buyers feel is undesirable, this could play a factor when it comes time to sell. However, this could also work in reverse. If your vehicle is factory-painted with a special color, perhaps a color that was only used in 1 or 2 years of production, this could significantly increase its resale price.
Optional Equipment and Features are another addition to the pricepoint
If your vehicle has any optional equipment, this generally adds to the resale value. Optional equipment includes anything that didn’t come standard with the vehicle when it was purchased new. Heated seats, sunroofs, beefed-up sound systems, and leather interiors are sometimes add-ons at the time of sale and would be considered optional equipment.
Of course, there’s Vehicle Condition
Each car resale pricing guide uses different terminology when determining a vehicle’s condition. Unfortunately, the very second a brand new car is driven out of the dealership, its value declines. This makes it highly unlikely that any used car can make the claim of “showroom condition” or “outstanding.”
Most users of online pricing guides tend to be more forgiving when accessing their vehicle’s condition. Those couple of fender scratches may not be a big deal to the car’s owner, but they can be a huge eyesore to a prospective buyer. Try to be as honest as possible when using a pricing guide to determine a vehicle’s condition. It can help to look at it from a car buyer’s perspective.
Most People look for Mileage to determine usage
Your car’s mileage is a huge factor when it comes to its resale value. Every mile driven ultimately lowers the vehicle’s value. The U.S. Department of Transportation’s Federal Highway Administration estimates the average miles driven per year is somewhere between 13,000 to 14,000. If your vehicle averages more than this amount per year, chances are its resale value is less than one closer to the national average.
Know How to Tell What Your Car Is Worth
As mentioned earlier, knowing the value of your used car can make selling it a much easier and less stressful event. Once you have the basic details – make, model, condition, etc. – you can obtain a much more accurate idea of what you can ask for it.
Utilizing the information provided by online pricing guides can give you a fairly accurate estimate of what you should expect to earn from the sale of your used vehicle. It’s important to understand that these online guides are merely an educated guess as to how to price your vehicle. Ultimately, it’ll come down to finding the right buyer.
Kelley Blue Book
It’s fair to say that most people have at least heard of Kelley Blue Book, regardless if they’ve ever used them before. Sometimes referred to as “Blue Book value,” it’s an easy-to-use online service to determine at what price a car is most likely to sell.
There has been some debate if Kelley Blue Book’s estimates are fair and accurate. Critics have accused Kelley of favoring used car dealerships over personal car sales.
Edmunds
Edmunds is another easy-to-use online car appraisal site. They were the first to come up with a true market value price for used cars based on several factors, location being the one that’s probably most important for car sellers. Some experts believe that Edmunds pricing estimates are more accurate than Kelley’s, but this is up for debate.
NADA guides
The National Automotive Dealers Association (NADA) uses a database that lists millions of car sales transactions. Using this data can give a fairly accurate estimate of a vehicle’s resale value. Price estimates tend to be a little high since its algorithm is based on all cars being in very clean condition.
The best way to figure out the approximate value of your used car is to use multiple sources to obtain estimates. Since no pricing guide is completely accurate and each uses different algorithm protocols, check each of the above three and average out the price. Again, an estimate of value is simply an educated guess. Selling your car will come down to finding the right buyer and being able to negotiate a fair price.
Know How You Can Boost Your Car’s Value
Savvy sellers know there are some easy things that you can do to increase the value of a used vehicle. Sometimes these minor touches are all that’s needed to secure a sale and some can even increase the selling price. Here’s a look at the most common tactics to boost your car’s value.
Clean and Detail
Just like with people, first impressions matter when selling your car. If its exterior is dirty and there’s random trash inside, this gives the buyer the impression that you didn’t take very good care of your vehicle. Before showing it, at the very least, take it to a carwash and ensure that it looks clean and well-maintained. Remove anything from the interior that isn’t a part of the sale. Clean out the glove box, remove unnecessary items from any holders, and ensure that the dashboard is spotless.
Repair Any Scratches or Dents
Depending on the condition of the car, you may or may not want to spend a little money on repairing any scratches, dings, or dents. If you’re selling your beater car and its value is low, it doesn’t make financial sense to spend money repairing dents and such. However, if it’s in relatively good shape, that ding in the fender or scratch on the driver’s side door could have the buyer trying to negotiate a lower price.
Include Everything That Came With the Car
Along with the owner’s manual, other important items to locate could include tool kits, spare tire/donut and jack, and any tools that came with the car when it was purchased new. Things like including spare keys or other items that came with the car can sometimes add a bit of value to your asking price.
Have It Serviced
Ensuring that everything is working properly before showing the vehicle to buyers is always smart. Nothing can end a sale quicker than taking the car for a test ride with a prospective buyer only to realize the car has problems. Even a small issue can leave a bad taste in a buyer’s mouth.
Have All Vehicle Maintenance Paperwork
Having all paperwork and receipts to show the buyer that the vehicle has been properly maintained is always a fantastic selling tool. Receipts for new tires, brake pads, and even routine oil changes prove to the buyer that you’ve taken care of the car.
Know Where to Sell Your Used Car
Placing a for-sale sign in your car’s back window probably isn’t the best way to sell it. The chances of the right buyer seeing the sign and contacting you are slim to none. This may have worked in your grandfather’s day, but it doesn’t hold true in today’s modern world. So how do you sell your used or junk car for top dollar?
There are two basic options; selling to a private party or selling to an auto dealer.
Benefits of Selling to a Private Party
Typically, selling your car to a private party is the best way to get the biggest payout. Selling the car yourself allows you to get much closer to the retail value of your car.
When selling to a car dealer, you’ll be paid the wholesale value, which is probably much lower than you’d like. If your vehicle has over 100,000 miles, chances are you’ll have better luck selling it yourself.
The major drawback when selling your car privately is the time you’ll need to invest in vetting buyers and using your free time to meet with them.
Benefits of Selling to an Auto Dealer
Although you may not get exactly the price you want for your used vehicle by selling it to an auto dealer, there are plenty of advantages to doing so.
Bringing your used car to a junk car dealer in your area is like one-stop-shopping. Chances are once you’ve agreed on a selling price, you’ll be done with the process in an hour or so. Auto junk dealers aren’t looking for a specific type of car, so they’re more open to buying yours.
Auto dealers are experts at both buying and selling vehicles, so they know the ins and outs of the paperwork required for transferring ownership. If some paperwork is out of sorts, they have the knowledge to right the situation.
Know How to Provide Comps to Buyers
A great way to induce an offer for your used car is to find examples of comparable cars to help buyers understand they are getting a good deal. This is also a good way to ensure that your asking price is acceptable without being so low that you’re missing out on some profit.
An easy way to accomplish this is to scour legitimate car ads and locate a few that are the same make, model, approximate year, condition, and ones that have around the same mileage as yours. As long as your price is a bit under these, print out the ads or save the web pages on your phone. Buyers who see similar vehicles as yours with higher prices could be the tipping point between a sale and a lost opportunity.
Know When to Change Tactics
Sometimes you can do everything correctly yet still have difficulty getting the price you want. Understanding when to throw in the towel – perhaps due to the vehicle’s condition – is sometimes inevitable. This scenario is common for sellers who have a vehicle in poor condition or with extremely high mileage.
If you can’t find anyone to take it off your hands for your asking price, consider lowering your price. Even better, sell it directly to a dealer who specializes in buying junk cars.
Selling to a junk car dealer could prove to be your easiest and sometimes the only option to sell your used car for good money.
