Five Mistakes to Avoid When Selling Your Car

It’s time to say goodbye to your old car and hello to a new set of wheels. However, selling a car can be a daunting task, especially if you’ve never done it before. There are plenty of pitfalls that can cost you money or even sabotage the sale altogether. Here are five of the worst mistakes to make when selling a car, and how you can avoid them.

Skip the Wash

One of the easiest ways to sabotage the sale of your car is to present it in a dirty, cluttered state. Potential buyers may overlook your car’s actual condition if they are distracted by trash and dirt. A clean car not only looks better, but it also shows that you take care of your car. Therefore, it’s essential to do a thorough vacuum and scrub down before presenting the vehicle for sale. If your asking price is more than $5,000, consider a full detailing, which includes washing the windows inside and outside, shining the interior, and applying a glossy new coat of wax.

Head Straight to the Dealer

Perhaps the easiest way to unload your old car is to trade it in at the dealership where you’re buying your new car. However, this convenience comes at a cost, as dealers always offer less money than you would get from a private sale. For example, trading in a 2009 Hyundai Elantra will likely get you a $5,400 credit at the dealership. However, selling the car yourself puts $6,800 into your pocket even after taking into account the cost of renting a car for a few days. Therefore, it’s more financially beneficial to sell your car yourself if you have the time and patience to go through the process.

Use the Wrong Price

Another mistake when selling your car is to use the wrong price as a benchmark. Many people don’t realize that there is more than one blue book, and using the right price from the right book makes a big difference. For instance, the well-known NADA Guide lists retail prices for dealers and banks, which isn’t an ideal source when selling your vehicle. Instead, use Kelley Blue Book to find the private party value, which is the term for selling your car directly to another person. By entering your zip code, selecting your car’s options, and estimating its condition, you can determine the fair market value for your vehicle.

Forgetting the Paperwork

Before putting your car on the market, it’s essential to gather all the necessary paperwork together. Ensure you know where the title is, and get two copies of a bill of sale – one for you and one for the buyer. These are usually available for free at your local DMV office, and if you use a blank template, make sure it’s valid in your state. Keeping a copy of the bill of sale is essential for two reasons. First, it helps protect you from liability if the buyer is in an accident before transferring the title into their name. Second, the “as-is, where-is” clause reiterates that you aren’t including any warranty or making any promises about the condition of the car. Ultimately, it’s up to the buyer to inspect the vehicle for mechanical issues before they buy.

Take a Check

Taking a check from a buyer when selling your car can be risky. Scams using cashier’s checks have been in the news for years. The scam goes like this: a buyer contacts you via email, usually living in another town or out of the country. They want to buy your car sight unseen and send you a cashier’s check for the full asking price. It sounds too good to be true, and it usually is, so resist the temptation of this seemingly quick sale. Even if the buyer meets you in person, it’s generally not a good idea to accept a cashier’s check that could be forged or a personal check that the buyer could stop after driving away. It’s best to accept cash only. If you feel uncomfortable driving around with thousands of dollars in your pocket, have the buyer meet you at your bank to finalize the sale.

Conclusion

In conclusion, selling a car requires a bit of preparation and knowledge to avoid making common mistakes that could cost you money or even sabotage the sale. Therefore, make sure to take the appropriate steps to present your car in the best possible condition, understand the true value of your car, gather all the necessary paperwork, and avoid risky payment methods. By doing so, you can get the most money for your old car and happily welcome your new set of wheels.