Selling your car online
Will your car be easy to sell? Is it in demand? Or will you have to drop your price and search out additional methods to sell it? Here are a few general guidelines to help answer these questions:
- The common family sedan, while boring to many, is in constant demand by people requiring basic, inexpensive transportation. However resale value is in a decline due to high petrol prices.
- SUV's whilst these became very popular not so long ago, it seems everyone is trading them in for less gas-guzzling cars.
- Convertible and sports car sales are highly dependent on the season, with summer garnering the most attention.
- Collector cars will take longer to sell. However, if the right buyer is to be found, these cars can have an unexpected value.
- Small car (4 cylinders) sales are on the rise due to hefty prices at the pump. Whilst these are in great demand they are retaining their value well.
Your first step should be to check other online classifieds to see how much others are asking for your type of car. A rough price guide for your car can be found at redbook.com.au. There are always some exceptions to the rules of pricing, so follow your instinct. Ask for slightly more money then you are willing to accept. If you would like to get $10,000 for the car, you should list the car as $10,500. That way, when you are inevitably haggled you have a little bit of wiggle room.
You may notice a trend amongst car dealers. They often end their price in '990' as in $19,990. Perhaps some people don't notice that the car costs $20,000. There is a lot of psychology in setting prices. A product that has a hard time selling at $20 might jump off the shelf at $19.95.
On the other hand, as a private seller, you don't want to look like a dealer. Therefore you might want take a simpler approach and end your price in a nice round figure, such as $19,500.
Cleaning your car
Remember first impressions last. When someone comes to look at your car, they will probably make up their minds whether to buy it or not within the first couple of seconds. You want your car to look good.
Before you advertise, make sure it looks as clean and attractive as it practically can. This goes beyond just taking it into a car wash. We recommend the following:
- Wash, wax and detail
- Make sure it is mechanically sound
- Free from dents, dings and scrapes
- Consider making low-cost repairs yourself rather than selling 'as-is'.
- Clean the inside of the car, when a prospective buyer goes for a test drive, the last thing you want is a couple of stray coke bottles to roll around and put them off. Let them visualise the car as theirs, a tidy inside allows this.
- Wipe the brake dust off the wheel covers and clean the tires with a tire gloss product.
- Thoroughly clean the windows (inside and out) and all the mirrored surfaces.
- Wipe down the dashboard, and if you're a smoker, empty the ashtrays.
- Have your service history ready to show prospective buyers.
Wording your advert
When creating your advertisement you have an opportunity to show how eager you are to sell the car. This can be done by inserting the following abbreviations and phrases:
- Must Sell: This often means the seller is leaving town and needs to sell the car at a cheap price.
- ONO: This stands for 'or nearest offer' and indicates that you are willing to consider offers below your stated price. This usually means you are eager to sell the car.
- Asking price: This also communicates the feeling that you will negotiate, but it is one notch below ONO on the eagerness scale.
- Firm: This is often used to thwart of attempts to negotiate in price. It usually indicates you are not in a hurry to sell, and are more interested in your price.
Think about what you are telling people when you phrase the ad. Little words convey a lot. Besides the price, your ad should also include the year, make, model and trim level of the car you are selling along with the kilometres, colour, condition and options.
Showing you car
Keep in mind that when you sell your car, people will also be evaluating you. Trust is important. Try to make them feel as comfortable as possible. Be polite, and courteous. They might be a little uneasy about making a big decision and spending money. Put them at ease and answer their questions openly.
Many potential buyers will insist test-driving your car. If in doubt, make sure they have a current driver's license. Ride along with them so you can answer any questions about the cars history or performance. Also they may not know the area, so you may have to direct them.
Some sellers feel uncomfortable about having buyers come to their house to see the car. You can generally screen buyers on the phone. If they sound suspicious or if they are pushy, politely inform them that the car is no longer available and thank them for their call. If you don't want people knowing where you live, perhaps arrange to meet them at a shopping centre or park. Although, be aware that they will see your address when you sign the car over to them.
Negotiating on price
If a person comes to look at your car and it passes their approval after a test drive, you can expect them to make an offer. Most people are uncomfortable about haggling, so their opening offer might take one of the forms below:
- I like the car, but... This is the softest way to negotiate. They may not even state that the price is too high. If they say 'I like the car, but...' and then pause, you might consider an appropriate response. Perhaps ask them 'How much would you be willing to pay?'
- What's your best price? This is a more direct way of finding out how much the seller will come down. If you get a form of this question, don't seem too eager to lower your price.
- Would you accept x? This buyer has thought it over and is making an offer. If the price is too low, you should try and make a counter offer.
- Take it or leave it. The most direct form of negotiating. If someone says this to you, and their price meets the minimum you are willing to go, then you have a choice of accepting this, or waiting for a better offer. Sometimes they may even be bluffing, if the price is too low, do not sell.
The above are just a few guidelines for some of the openers you may encounter. Think of your responses ahead of time so you won't get caught unprepared. It is a good idea to be firm on price when your car first goes on sale. If you don't get any buyers right away, you'll know you have to be flexible about the price.
Finalise the sale
When selling your car you want to limit your liability as much as lawfully possible. If someone drives away in the car you just sold, and they have a collision, can you be held responsible? This can be avoidable with the right steps.
Make sure you have your registration/ transfer papers. Fill it out accurately, and make sure the buyer does the same. Follow the instructions on the registration papers.
Before your car drives away, make sure you check the glove compartment, console, and boot. You may have left some long forgotten treasures in there.
When done correctly selling a used car should be a win-win situation. You have turned your used car in to some cash, and provided someone else with a reliable means of transportation. Focus on the benefits for both parties and you are likely to have a simple and smooth transaction for all involved.