Used Vehicle Sellers Guide

1. Why Sell Your Used Vehicle Privately?
2. Cleaning, maintenance, and preparation
3. Determine What Your Vehicle Is Worth
4. The Best Way to Offer Your Vehicle For-Sale
5. Answering Telephone Calls From Buyers
6. Presenting Your Vehicle
7. Bargaining
8. Consignment Selling
9. Taking a Deposit
10. Mechanical Inspections
11. Accepting Payment
12. Paper Work
13. Conclusion

Why Sell Your Used Vehicle Privately?

You will literally save yourself thousands of dollars. Selling a used vehicle privately is easy and this page offers step-by-step instructions on how to do it quickly. Most people take their used vehicles to the dealership and trade them in because they think it’s too much of a hassle to sell privately, but it will undoubtedly be the easiest couple of thousand dollars you will ever save yourself. A dealership will only give you the Black Book trade-in value for your vehicle and that price is always a minimum of $3,000 lower than what private sellers are getting for their vehicles! If you would rather keep that $3,000 to $5,000 in your own pocket then the information that follows will be of great value to you.

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Cleaning, Maintenance, and Preparation

The first step in selling your vehicle privately is to get it ready by cleaning the interior and exterior. As an absolute minimum you should wash the exterior but it is recommended that you wax and shine your vehicle if possible; this includes tires, wheels and chrome surfaces. Wipe the inside dashes, vacuum the entire interior including the trunk, and clean the insides of windows and mirrors. Do not hang air fresheners inside the car even if there is a strong odor as strong scents offend some people and it also arouses suspicion. If your interior has a strong smell, have the upholstery and carpets professionally cleaned. You may want to have both the interior and exterior professionally detailed depending on their condition, and you may want to fix chips and scratches with touch-up paint, or you may want to have a body shop do it for you.

Presentation and first impressions can be the determining factor in just how much interest your vehicle generates from buyers. The buyer must be able to see himself/herself driving your vehicle, and that is a lot easier in a shiny, clean vehicle. Be sure to remove personal belongings from glove boxes, trunks, and other storage areas, as it will be harder for a potential buyer to see your vehicle as his/her own if the vehicle is full of your stuff. Cleaning also helps you do an honest assessment of your vehicle’s true value, and can help you decide on a listing price. You want to make the most money possible and sell as quickly as possible. Replace any missing knobs, handles, covers, buttons, and trims pieces. Also replace worn items such as wipers or light bulbs. To keep expenses down, try auto wreckers and parts stores; if you can’t find the items there, go to the dealership.

Replace the air filter, if needed, and any other worn belts or hoses. Have all the fluids topped-up (coolant, wiper fluid, oil, transmission fluid, brake fluid, etc.). If the vehicle requires a scheduled maintenance or servicing like an oil change, have it done. Make sure you keep records and receipts for cleaning and maintenance as you can show them to potential buyers. For a free printable PDF checklist download, click here.

If your vehicle is leased or has any form of lien against its title, contact that creditor and find out how the sale should be handled and how much you owe on the vehicle.

If you are a resident of Ontario, you will have to purchase and complete a Used Vehicle Information Package. http://www.mto.gov.on.ca/english/dandv/vehicle/used.htm.

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Determine What Your Vehicle Is Worth

The next step in selling your used vehicle is determining what it is worth. What your vehicle is worth and what you can get for it might differ—sometimes in your favor, sometimes not. To help determine your vehicle’s worth you can check online for what a dealership would give you at http://www.gmcanada.com/english/financing/appraise.html or http://www.vmrcanada.com. This price is usually grossly under what your vehicle is actually worth—a good rule of thumb is to add $2,000 to $5,000 to this number and you will have a ballpark price. You can also take your vehicle to a dealership and ask a salesperson what you would get on a trade-in but this number will also be much lower than what you can get if you sell the vehicle privately. Once you have this base number, search used vehicle websites such as www.AutoTrader.ca and www.CanadaSuperSeller.com for vehicles with year, mileage, condition, and so forth, similar to the vehicle you are going to sell. Blending these prices with the price you received from the dealership or other value calculators should enable you to come up with a fair price that will save you a few thousand but also let you sell the vehicle quickly. Factor in the overall condition of your vehicle and maintenance records/complete vehicle history which can increase its worth. Generally, aftermarket performance parts do not increase a vehicle’s value and may actually deter potential buyers. It’s a good idea to list at least $500 to $1000 higher than the lowest price you would accept; this leaves you with some room to bargain if the buyer decides to barter. It is customary for most private buyers to offer less than what you are asking, be ready for this in advance by reading the bargaining section.

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The Best Way to Offer Your Vehicle For-Sale

The fastest way to sell a used vehicle is to list it on a website, specifically one that also publishes its ads. Websites are preferable since 70–80 percent of adult Canadians surf the Internet. Websites enable you to put a picture of your vehicle in your ad and a 300-to-unlimited word description. Two of the best Canadian websites that list used vehicles are www.AutoTrader.ca and www.CanadaSuperSeller.com. Both of these companies offer excellent web services and both offer printed magazines. The Auto Trader is more expensive but has a well-established user base. Canada Super Seller is relatively new but its popularity is gaining very quickly as it offers much lower rates and almost identical services to Auto Trader. As long as the fee for listing is under $50 per month, it’s a very reasonable price, considering it’s a small percentage of the price of the car, especially compared to the 10–20 percent extra a dealership will charge. Have a good picture of your used vehicle ready when you list with either of these websites. In your picture make sure your vehicle is clean and the light is good (mid-day). If you are taking the picture yourself try to include as much of the vehicle as possible. I recommend taking the photo slightly from above and to the left or right of the vehicle so you include a side of the car, a bit of the top, and the front.

When writing your ad, use as much detail as possible. If you are having difficulties do a search for a similar vehicle and use the text of another ad as a template for your own. Include the year, make, model, mileage, options, price, and contact information as a minimum. Phrases that you should include are “original owner,” “factory warranty,” and “all records,” remembering that you should only add these phrases if they are true. Try not to abbreviate and be sure to make your text easy to read (do not use all caps). Avoid phrases such as “won’t last” and “very fast.” Leave the selling to the salesmen, a good picture and description of your vehicle will sell themselves. Do not put phrases like “must sell” as you will receive low offers. If you must sell, just list the vehicle at a lower price in the first place. Honesty and truthfulness are the most effective tools for selling a used vehicle. Buyers are not stupid and they will know if you are lying. It may ruin the sale for you if a buyer doesn’t trust you.

If you don’t want to spend anything, a slow but sometimes effective way to sell your used vehicle is to get a “for sale” sign or sticker, put it in your window, and park near a dealership where you know there will be people looking to purchase a vehicle. A busy parking lot or somewhere else that has a lot of traffic is another good location. Another method is to print a one-page ad and hang it on bulletin boards or distribute it at work.

Newspaper classified ads are not recommended as they are usually very expensive, run for a short duration, offer a very limited word description, and seldom include a picture.

Be aware that if you place your used vehicle on a website or in a newspaper, solicitors may call and try to get you to list with their service as well. Only consider it if they (1) offer a local service and, (2) offer a low price. Anything more than $50 per month is too expensive. Be wary of money-back guarantees and other promises; lots of people are having problems with these. If you do decide to list with a site not mentioned here, research the company on Google to find out if anyone has had problems with them. This research can also tell you what kind of a success rate other sites are having in helping people sell their vehicles. Some sites have plenty of listings but none of them sell. My thought on money-back guarantees from listing services is this: If the service is willing to give you your money back if the vehicle doesn’t sell, why don’t they offer a free listing, and charge a predetermined amount if the vehicle sells? They don’t do this because they count on most consumers forgetting about the guarantee or being afraid to ask for their money back; or they make the process of getting money back so difficult that people don’t bother.

It is advisable to list only with services that are easy for buyers to use. Most buyers want to buy locally, but if your ad is posted in a website that is poorly designed or does not have full search options, it may be hard for buyers to find. Research any services that phone you first. Before you commit to anything, check out their website, ask for proof that they are helping people sell vehicles, and ask them what they are doing to attract potential buyers to their website. I have had such websites phone my ads claiming that they had a local buyer lined up to buy my vehicle. On further questioning, it became obvious that this was a clever line intended to dupe me into making an impulse decision.

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Answering Telephone Calls From Buyers

After listing or placing your vehicle for sale, you will begin to receive phone calls from interested buyers. It is important that buyers are able to reach you easily; some will not leave messages. When possible, use a cellular or work telephone number. If you do not receive any phone calls within the first 1 to 2 weeks, double check the phone number posted in your ad. If the numbers are correct, it may be that your price is too high. When answering buyers’ questions, tell them what they want to know but keep your answers to the point. In other words, let the vehicle sell itself. People do not like to be sold anything; buyers have to sell themselves on your vehicle. Leave the selling to the sales people, be truthful in your answers, and be polite. Be sure to get buyer’s name and telephone number and write down the time and place if you agree to meet the buyer for a viewing.

Being 100 percent truthful about your vehicle’s history, condition, and any defects is very important. You don’t want to waste your time cleaning and showing your vehicle to someone who will be uninterested. For example, if you smoke, make sure you let buyers know this when they are asking about the interior of your car. If your vehicle has been in an accident you must inform a potential buyer by law. You are also required by law to tell a buyer if there are liens on the vehicle.

Make viewing your vehicle easy and convenient; be accommodating—remember, you are going to save a lot of money for this. Let the buyer come to your home to view the vehicle, this gives them confidence in you and your vehicle. It is acceptable to meet a buyer elsewhere to view your vehicle if it is more convenient for the buyer, but be sure to meet during daylight hours in a public place. Be sure that you leave enough time for buyer to do a thorough inspection of your vehicle without feeling pressured or rushed. Do not try to sell your vehicle by being pushy; this includes telling buyers that someone is waiting in the wings to scoop your vehicle up if they don’t buy it right now. This can be a huge turn-off for most buyers.

Some buyers will try to negotiate the price with you over the phone. Never negotiate with a buyer until they have made a serious offer on your vehicle. It is ok to tell a buyer that you are flexible on your price but that they need to come see your vehicle before you will discuss price further. You can add that you are confident the vehicle is in great condition (if you are). You will save time using this method, as only serious buyers will take the time to view your vehicle in person.

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Presenting Your Vehicle

When a potential buyer makes an appointment to view your vehicle, make sure the vehicle is clean (windows, seats, dash, mirrors, exterior, and glove box/storage at a minimum). Remove all personal effects from the vehicle and have the vehicle’s maintenance records, warranty info, service book, and factory manual readily available. Remember that the amount of time and effort you put into cleaning can influence how fast your vehicle will sell. Buy new floor mats if the originals are worn or stained, but be ready to explain that you did so only to improve the general impression of the vehicle. Light engine cleaning is all that is recommended as an overly clean engine bay can arouse suspicion. Removing mud or dirt and wiping all surfaces will suffice as an engine in a vehicle that is driven daily is usually not spotless.

Remember that a buyer’s decision to purchase your vehicle may be based on his/her perception of you as a seller. For this reason, dress respectably when showing your vehicle and behave professionally. I had one seller show me his vehicle dressed in a white muscle shirt while eating and casually swearing, it did not directly influence my decision not to purchase his vehicle but I definitely wanted to end that visit/inspection as quickly as possible. The same thing goes for the viewing space. For example, if your garage looks more like a yard sale than a place to store vehicles, it could be a negative factor. It’s human nature to judge strangers and to base important decisions on a first impression.

Make sure there is enough fuel for a short test drive, and always accompany potential buyers on a test drive in your vehicle. If possible, have a friend go with you on a test drive, or bring a cellular phone for safety. Request to see the buyer’s driver’s license and verify your insurance coverage before letting anyone drive your vehicle. If the buyer does not have a valid license, do not let them drive your vehicle.

It is not recommended that you have the vehicle preinspected, as this can arouse suspicion. Most buyers will want to have their own inspection done. It is customary for a buyer to arrange and pay for a mechanical inspection. Only change the oil if an oil-change is due; this act can arouse suspicion and it is an unnecessary expense.

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Bargaining

If the buyer is interested after the test drive, he/she will likely ask you what is the lowest price you would take for the vehicle. At this point you have the advantage because the buyer is obviously interested in your vehicle. It’s all right to slide by a few hundred, especially if you calculated that into what you were asking for the vehicle originally; that helps the buyer feel like he/she has found a “deal” and it may make the sale for you. If a buyer offers you less than your asking price, ask why. If it is for a legitimate reason like necessary repairs, the lower price may be justified. If a buyer argues that your price is too high you can point out that you have researched similar vehicles in advance and your price is competitive considering your vehicle’s great condition. Before a buyer even comes to look at your vehicle you should have the lowest price you would accept in mind, and never go below that number when bargaining. The oldest trick in the book is for a buyer to offer you cash, a few hundred to a thousand lower than what you are asking. Do not fall for this; the buyer has the other few hundred in his/her wallet ready for you. Even if they walk away, nine times out of ten, they will return in 15 minutes or less. Before letting the potential buyer walk, make sure to get a phone number in case you change your mind. This gives you time to think. If the buyer is only offering a few hundred less than you are asking, you may consider accepting as it could end up costing you that amount to relist the vehicle. If the buyer requests a mechanical inspection, have the buyer set it up and get the buyer to prepay for it—never pay for a mechanical inspection yourself; the buyer may change his/her mind and you will be stuck with the bill. Do not accept any offer below $500 of your asking price. It would make more sense to reduce the listed price of your vehicle by $500. By reducing your asking price and re-listing your ad, you generate more interested buyers. This makes more sense than selling to the current buyer who is offering you far less than your vehicle is worth.

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Consignment Selling

This type of vehicle selling is not recommended. If you have no interest or time to sell your used vehicle, it may be easier to sell it to a dealership. If you do consign, make sure you have a detailed contract that includes:

• The rate charged by the business
• The time period they have to sell your vehicle (1–2 months maximum)
• The lowest price you will accept for your vehicle
• The stipulation that you must be contacted to give the final word of approval before your vehicle is sold
• A statement that payment for the vehicle will be made in full to you and that you will pay the percent rate the consigner charges separately

Be aware that once you consign, the consigner can legally drive your vehicle and you no longer have control over who drives it or how. For this reason it is a good idea to check back frequently to ensure that your vehicle is being kept at the consignment dealer’s lot and that it is being kept in reasonable condition.

When consigning it is imperative that you check with your insurance company to make sure that your vehicle is covered while on the consignment lot and while it is being test-driven. Get the entire contract between yourself and the consignment company in writing before handing over your keys.

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Taking a Deposit

If you have two interested parties and one offers you a higher price than the other, or if the buyer wants some time to think about the deal, you may consider taking a deposit. Taking a deposit can ensure that if the potential buyer backs out of the deal, you have your advertising costs covered for relisting the vehicle for sale. Be aware though, that taking a deposit can be a hassle if the buyer changes his/her mind and wants the deposit back. Get the terms of the deposit in writing and state that the buyer forfeits the money if they decide not to buy your vehicle for any reason. Be aware that if you are offered a higher price and you have taken a deposit, you are obligated to sell for the lower price to the buyer who left the deposit. This often happens. Should this happen you may be tempted to refund the deposit, and this can end-up being very messy. If you do take a deposit and turn away interested buyers, keep their phone numbers in case the current buyer backs out of the deal.

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Mechanical Inspections

Should the buyer request a mechanical inspection, let him/her choose the location but make sure that you take the vehicle there yourself. It is customary for the buyer to prepay for the mechanical inspection as you will be stuck paying the bill if the buyer backs out of the deal. For this reason it is vitally important that you reveal all defects prior to the mechanical inspection so that your time and the buyer’s time and money will not be wasted if the inspection reveals a problem you should have known about.

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Accepting Payment

Only accept full payment for your vehicle. If the buyer needs financing, let him/her get it at a bank. Only accept a certified bank draft as payment for your used vehicle, never accept cash. Certified bank drafts are traceable and therefore much less risky. One alternative to a certified check is to accompany the buyer into the bank and have an electronic money transfer. Accepting cash is not recommended because counterfeit money is becoming extremely difficult to detect.

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Paperwork

Ensure that you and the buyer fill out two copies of the Bill of Sale. Without this proof, you can be held legally responsible for the vehicle if it is used to commit a crime or is abandoned. Always have two Bills of Sale ready; you can find them on this website. In the conditions of sale always state: “vehicle sold as is.” Fill in all blanks; put X in all blank spaces where there is no information so that nothing may be added later. Make sure to take your license plate off the vehicle and cancel your insurance as soon as the vehicle is sold.

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Conclusion

Selling a vehicle privately is a financially beneficial choice. Instead of giving your money to the vehicle dealership when buying, trading, or leasing a vehicle, you can keep the money in your pocket where it belongs.

Selling used is the way to go!

For more detailed information on buying used vehicles, purchase the book Private Sale: A Complete Guide to Buying and Selling Used Vehicles. The book will be available through this website and on Amazon.ca in early 2007.

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