Selling a car

Trade in or sell privately

Selling to a dealer is definitely the quickest and simplest option, and if it’s part of a trade-in you should get a better price. But, you do tend to get more for your car if you sell privately - the downside is that it can eat up a lot of your time and it may take longer to sell. There’s some simple steps you can follow to make the whole process a lot smoother though, so read on to find out more.

Know what price you want to sell for

Before you place an ad or meet any prospective buyers you need to know what the car is worth. You also have to know what the minimum amount you’ll accept is. Buyers are likely to haggle with you and you need to be prepared for this.

Used car price guides are a useful starting point and it’s a good idea to look at other ads to see what price similar makes and models are going for. Obviously you’ll need to take into consideration mileage and condition, and adjust your price accordingly. Would you buy this car?

Would you buy this car?

It’s always a good idea to see things from the point of view of the potential buyer. Look at your car as though you were coming to inspect and test drive it. Make sure it looks its best, that means a good clean and polish both inside and out, and car freshener to get rid of any smells. Consider having a professional clean with a valet company, and change the oil - it gives the message that the car has been well cared for.

How to advertise

Advertising costs add up, especially if your car takes time to sell. You need to decide where to advertise: local papers, motoring magazines such as Auto Trader, Parkers and What Car? online. A lot of advertisers charge by the word, so make sure your ad is 100% accurate and you only include relevant information. Abbreviations are best avoided, unless they’re instantly recognisable.

Here’s what you could include in your car advert:

Meeting prospective buyers

Just as you’d expect from a seller, always meet prospective buyers at your home address in daylight hours. You may want to change your car insurance policy while you’re selling your car, that way you know you’re always covered for the test drive. Otherwise you need to make sure the potential buyer has third-party insurance cover.

Very importantly, have someone go with you on the test drive; it’s always better to be on the safe side. As an extra precaution, before you set off, look at the buyer’s driving licence and make a note of the number.

Payment

Once you’ve agreed a price take a non-refundable deposit and write down what’s been agreed and when the buyer will come back with the balance of funds. You also need to make it clear that the car will only be handed over when you have the money in full, or a cheque or banker’s draft has cleared. Asking for a banker’s draft is the safest option as it guarantees that the funds are available, but drafts are still open to fraud: wait until you have cleared funds in your account before you hand over the keys. Some insurers, including Sheilas’ Wheels, do not cover loss by deception or fraud in this way. Put in writing the details of the sale, keep one copy for yourself and give one to the buyer. Make sure you include a note that the vehicle is ‘sold as seen’.

Paperwork

A buyer will want to check all the paperwork is in order for the car, so make sure you have the following documents to hand:

Once the sale is complete send off the vehicle’s V5 registration document to notify the DVLA of the sale.