Here are six detailed steps to selling your vehicle privately to ensure you have all the essentials ticked off the list.
Step 1. Ways to Sell Your Car
Firstly, it's vital to understand the different ways to sell your car. Private sale is just one option, but you should consider all your options before you commit to just one.
Trade-ins
Trade-ins are a quick and easy way to get rid of your old car. It entails you exchanging your vehicle with a car dealer for a newer model. Obviously, you do not get as much cash this way, but you save yourself a lot of time and stress.
Often, when selling your car privately, you end up incurring additional expenses and holding onto it for a while, so a trade-in eliminates these inconveniences.
Auctions
Taking your old car to a public auction house gives you a chance to get as much money as possible. However, it's a gamble. You could end up selling it for less than market value. Plus, some auction houses charge commissions.
Private Transaction
Private sales can ensure you get top dollar compared to a trade-in, and potentially more than an auction depending on the make, model, and condition.
However, you need to devote time to selling the car. You may also incur extra costs from selling the car, such as advertising and maintaining it in the meantime.
If you choose to go down the private route, consider the following steps and details to ensure you get the process right.
Step 2: Find Out How Much Your Car Is Worth
The next step is to find out how much your car is worth. A car dealer can let you know the estimated value of your car from a professional standpoint. Usually, they can tell you over the phone and you won't need to take your car to them.
You can also search online to see what cars with the same model and in a similar condition are selling for in your local area. If you are happy with what the car dealer quotes, then you might sell it to them right away. However, if you can see cars online selling for more, then you can move to the next step and start advertising your car.
Step 3: Prep Your Car
It's essential to prepare your car. You might want to have it detailed professionally, which can save you a lot of time cleaning and servicing. However, it will add to your expenses.
In terms of cleaning, here is a helpful checklist:
- Remove everything from the car, including the boot. If things rattle around during a test drive, it might concern the buyer.
- Clean all the hard-to-reach areas, including the engine bay, door openings, and boot openings.
- Top up the windscreen washer and radiator; this makes your vehicle look cared for.
- Take it to a car wash to ensure the exterior is sparkly clean.
Consider taking the car for a service so you can tell the new owner everything is up to scratch. It can look suspicious if a service is due soon. Plus, a recent service can help you get the vehicle registered for sale and apply for a roadworthy certificate. This certificate is necessary if you want to sell your car in most states, and it needs to be valid from within 30 days.
Make sure you also have other service paperwork and proof that it's a registered vehicle to hand in case the new buyer wants to see the vehicle's history. You can even go one step beyond and get a car history report; feel free to add this cost to the car's price tag.
Step 4: Making Your Ad
Next, you can start taking photos. You can usually take high-quality photos with your smartphone camera; just make sure you wipe the lens clean.
It's best to take photos in the early morning or late afternoon, when the lighting is most flattering. A slightly overcast day also eliminates any shadows.
Take your photos in landscape mode, and make sure you have:
- A front 3/4 view
- A rear 3/4 view
- A side view
- Some interior shots
You can also start writing your ad. Include the make and model of your car, year of manufacture, engine transmission details, and some information about its condition. You can also include an odometer reading and some details about its recent services and history.
It's better to be honest in your ad instead of wasting of your time to find prospective buyers who end up bailing when they discover the truth. Instead, sell the benefits of their new car but be forthright about its shortcomings; people buying a second-hand car will expect some downsides.
Crucially, make sure the asking price is very clear. You should also ensure it's easy for the buyer to contact you, with your email or phone number clearly visible.
When your ad is ready, you can list it on the relevant sites.
Step 5: Making the Sale
When you have found a prospective buyer, you can arrange a sale. Make sure you have proof it's a registered vehicle and provide a roadworthy certificate issued within 30 days.
It's likely that the buyer will try to negotiate the price a little when they see the vehicle in person and perform an inspection. It's a good idea to set the asking price a little above what you actually want so that both parties can leave the sale satisfied.
The buyer might want to do a test drive. You can accompany them if you like or let them go alone, but make sure you carefully record their licence details or even take a photo.
Finally, arrange a payment method that works for both of you. It's best to avoid a personal cheque, which can easily bounce. Instead, opt for bank cheque or transfer, direct deposit, or cash. Make sure you have a receipt for the transaction.
Step 6: After the Sale
After the transaction, you will need to transfer ownership of the vehicle. Both you and the buyer need to fill out a vehicle transfer form, and you will also need to provide a notice of disposal. The buyer sends the transfer form and certificate of sale to the relevant authorities within 14 days. If you have any concerns, you can notify Vicroads (or your local authority) yourself.
If you are selling to an interstate buyer, you will also need to re-license the vehicle in the new state or territory.
Make sure you give the owner spare keys, instruction manuals, and anything else they might need to enjoy their new car.
Finally, remember to cancel any car insurance you have or transfer it to your new car.
Summary
Private sale is a great option if you want to get more money for your old vehicle. In most cases, it's easy to make a quick sale by listing your car online and finding a prospective buyer.
This checklist can help walk you through the process, from writing an ad to making the transfer. Most importantly, make sure you have all your documents ready, including the vehicle transfer form, notice of disposal, and a car history check.
For the most transparent, thorough car history check in Australia, check out Carify.
