Selling a Used Car Takes Time, Preparation
Question: Everything I read on used cars is about how to get a good deal if you are buying one. What about selling a used car? How can a seller go about getting a good price at a minimum of hassle?--A.K.
Answer: The common motorist who decides to sell his own used car often has an experience that he wasn’t quite prepared for. For many, it’s their one excursion in life into the unique world of salesmanship.
American motorists bought 16,524,000 used cars last year at an average cost of $5,833, according to a study by Hertz Corp. The survey said the typical used car in 1986 was 4.5 years old and had 41,140 miles on it.
Your first task is to assess the value of your car. You should check the Blue Book, the official guide to used car prices; it can be found in your local library. Credit unions and banks also have the guide.
Patience, Skill and Luck
The Blue Book will list a wholesale value and a retail value. You should expect to get something between the wholesale and retail prices, depending on your patience, skill and luck.
A second way to appraise your car is to check the classified advertising section of your newspaper and see how much other sellers are asking for the same model and year.
You’ll need to get the car looking as good as possible, washing and even waxing it. Clean windows are very important. Wash the carpeting. And take some rags and wipe off the engine.
The next step is to run an ad. I’ve never known anybody who has sold a car by putting a sign in the car’s window. The ad should list things like air conditioning and automatic transmission, if the car has them.
It’s a good idea to say in the ad that the automobile is running well, because a little reassurance will generate telephone calls. I personally believe you should give a truthful assessment of any mechanical problems you know. The buyer will eventually discover problems and may come back demanding a partial refund. That would be very unpleasant. A smart buyer knows that almost every car has some warts and he may value your honesty.
Once a buyer comes out to look at the car, show the engine, the trunk and whatever else he or she wants to see. It’s useful to explain what new parts you have put on the car recently and to have your repair records handy.
Handling the Test Drive
The buyer will most likely want to test-drive the car. You should always go along. If you really don’t like the way he or she looks, you should insist that you’ll do the driving. I’ve known people who have had their cars disappear for several hours and come back with damage.
On the issue of price, I suggest asking for close to what you expect and skip the hard bargaining. But leave a little room to negotiate, because a lot of people will not agree to a sale without it.
You should accept only a certified check or money order. You should also check the person’s identification and obtain a telephone number in case there are paper work problems later. Some buyers will decide to hold off on registering the car, and that can cause big headaches for you. In California, a motorist should notify the Department of Motor Vehicles when he or she sells a car; the DMV provides a form to mail in.
You’ll probably spend a lot more time than you expected selling your own car. And you might meet some people you would just as soon not know. But you can be sure that you’ll get a lot more money than by selling the car to a used car dealer--in some cases up to 25% more.
