If the purchaser of a new or used vehicle has a trade-in, he must decide whether to sell it privately or trade it in to the new or used car dealer. While the majority of customers will decide, for several good reasons, to trade their vehicle in, there are a number of people who will opt to sell privately. The subject of trade-ins is a large and complicated one. This blog will address some of the difficulties to be expected in a private sale. The benefits of trading in the old vehicle are detailed in a blog entitled “Advantages of Trading In Your Car” at Trust Auto in Sykesville, MD.
In order to conduct a successful sale of his old vehicle, there are several things that should be handled. The first challenge to the private seller is to try to determine the market value of his current vehicle – what is a reasonable asking price? For this he must perform some diligent research, looking at similar vehicles listed at dealer websites and third-party searchers like Google or CarGurus. From the average asking prices he must subtract what it will cost to fully recondition the vehicle, both mechanically and cosmetically. A professional detailing job will take about four hours and cost $150 or more.
Next he will need to prepare a VDP, or vehicle detail page, a full description of every aspect of his vehicle. The more information that is provided the better. Help the prospective buyer to better visualize the car or truck. Several good photos of the inside and the outside will be needed. If the seller is going to find a buyer, he will need to place a classified ad with one or more of the classified automotive listing services such as Kelley Blue Book, Edmunds, TrueCar and many others. These services cost money, and a prime location that offers better visibility can be expensive. The objective is to help a buyer looking for a particular vehicle be able to find the sellers car or truck, click on that vehicle, read about it, see the photos, and be interested enough to call or email the seller for more information. If and when they do communicate, the buyer will ask all the usual questions that he would ask a dealer. And, he will need to be satisfied with the answers, to the point that he is willing to visit, inspect and drive the vehicle.
If the vehicle passes the buyers inspection and he wants to buy it, the parties must agree on the price and how it will be paid. In almost all cases, the seller should require payment in cash or certified check. The seller should limit his future liability by selling the vehicle “As Is”, with no written representation about the condition of the vehicle. Private buyers are notorious for failing to show up for an appointment. If they want to buy it, their first offer will usually be much lower than the asking price, so the seller must be prepared to negotiate.
If and when agreement is reached, the seller will need to produce the ownership title. If there is a bank lien on the title, he must call the bank, request a payoff amount and instructions for processing the payoff and getting the title. This will take several days, and maybe longer. When the seller receives the title from the bank, he should complete the assignment, including the buyer’s information, and take the title to the DMV to complete the transfer. Until the DMV processes the name change, the seller remains liable for any loss caused by the vehicle. Therefore, all insurance coverage must be kept until the transfer is complete. Any delays will extend the sellers legal liability.
If the seller has an extended warranty or vehicle service contract on his car or truck, this could greatly facilitate the sale. Most warranties and service contracts are transferable for a small fee, and this will give the buyer much more confidence in completing the purchase. This is one of the many benefits of buying a service contract from a dealer when the seller makes his new purchase. There are many reputable service contract providers today, and Trust Auto in Sykesville, MD, works with several of the leading companies.