If you’ve been thinking about selling a used car recently, you’ve got great timing. It’s never been a better time to sell. Used car prices have been rising since the beginning of the financial crisis. They are in demand and are in low supply. Here are some things to think about when selling your vehicle.
Tips For Selling A Used Car
Know Your Values
Check the blue book value before listing your used car for sale. You should know the proper value of your vehicle when setting a sales price. It will help during negotiations to know the minimum price you will be willing to accept. You should walk away from any offers below your lowest price point.
Make sure to have any recalls issued for your vehicle serviced. If there are any safety problems (e.g. worn brakes, broken headlights), you should have them fixed before putting your car on sale. Simple fixes will increase the value of the used car. If you’re not interested in fixing potential safety issues, you need to disclose them to the buyer. You can negotiate the cost of repairs as part of the deal, or sell it “as is” with a liability waiver in writing.
Certify Your Car
Get the car certified by a mechanic. The mechanic can identify any maintenance and repairs that are needed. They can also assure potential buyers that the vehicle is in good working condition. Having a used car certified by a reliable mechanic can support the sales price, especially if the vehicle is in good condition. You can also get a Carfax report to back up your claims.
Go On The Test Drive
If your potential buyer wants to do a test drive, go with them. Make sure they present a valid driver’s license and, at the very minimum, car insurance with liability coverage. Liability insurance is tied to the driver for any car they are driving. In terms of comprehensive and collision coverage, your insurance may not cover “excluded drivers”. Verify how coverage works with your insurance company in this type of situation before doing any test drives.
Document With A Contract
Use a written contract to document the sale. There are many free generic car selling contracts or purchase agreements that you can find online. The main point here is to document that you are not providing any warranties or guarantees, and the used car is being sold “as-is.”
Go Into Escrow
Consider using an escrow service. They can verify funds are valid before you sign the car over to the new owner. Do not accept personal checks or cash. If you prefer a physical payment, have the buyer obtain a cashier’s check or money order. These forms of payment are drawn on the banking institution itself, so you can be assured that you will get paid. Online payment services, like Paypal, can also be used to transfer funds among buyer and seller. Don’t even think about financing the deal yourself.
When completing the transaction, make copies of the contract, certificate of title, and the release of liability (notice of transfer). Having copies of this information is very important because it relieves you of responsibility for any civil or criminal matters involving the vehicle after the date of sale.
If you get a parking ticket, toll violation, or traffic camera citation in the mail involving the vehicle you sold, it usually means that the buyer failed to complete the registration process. You can present copies of the documentation to the authorities and they will direct the ticket to the right person.