10 STEPS TO SELLING YOUR CAR

Step 1: Communicating with Potential Buyers

Selling a car on your own can seem complicated, troublesome and even, sometimes, scary. As a result, most people choose to trade in their cars to a dealer rather than sell privately, thus taking a hit on the transaction price. But private-party sales don't have to be difficult, and will often result in higher transaction prices than trade-ins. To help prepare you, our Editors have compiled some good sales principles and sound advice, in 10 easy steps.

Fully assess your car's condition.
It's important to know the condition of your car before setting a sale price. Kelley Blue Book offers a Condition Quiz that can assist you and can be accessed from within the Private Party Value section of our web site. After assessing your car's condition, you'll feel more confident deciding on an acceptable, and reasonable, price. The Kelley Blue Book Private Party Value can be used when setting your price but, remember, only you know the condition of your car and only you can best judge if any flaws might warrant a price cut. It's also very important to be brutally honest with yourself about your car's condition. Generally, sellers tend to over-rate their cars' conditions, and buyers tend to be fairly good at spotting problems. Therefore, if you over-rate it, and thus over-price it, you'll only prolong the time it takes to make a sale. Remember, the idea is to sell the car and, even if you accept a lower price than you might like, it will still likely be more than you would have made on a trade-in. 

Do not decide that you "need" to get a certain amount for the car if that amount you "need" is more than the reasonable market value. That will just mean you'll never sell it. The buyer doesn't care how much you need. Remember; your car is in the market, competing with every other car in the market, and it is the market, and the market alone, that determines a fair and reasonable price.

You may also want to do some homework before showing the car to a potential buyer. If you were a dealer, you would give the vehicle a certain amount of preparation before putting it on the lot for sale, and you would do this preparation in order to get a better price. The same principle applies when selling your car to a private party. You may not want to spend a lot of money on your car just to sell it, but you do want it to look presentable and, just as important, you want to avoid unpleasant surprises while showing it to potential buyers.

Pretend to be the Buyer
Before you show your car to a buyer, look at it as if you were interested in buying it for yourself. Look for scratches and dings. Are the tires in decent condition, do they all match and are they wearing evenly all of the way across the treads? Start the car and operate all the knobs, switches and controls. Does everything work? How about the lights, the turn signals, the wipers, the sound system, the power windows? Does the air conditioning and heating system work in all modes and blow hot and cold air? Try everything. Many people, for example, don't know if their cars' rear windows work because they've never used them, and don't know if the brake lights work because they never see them. If something doesn't work properly, either fix it or accept the reality that it will reduce your price.

Take a Test Drive Rehearsal
Drive the car to make sure it operates properly. The idea here is to re-acquaint yourself with any new surprises before your potential buyer finds them.

Know the Problems Before They're Discovered
At least three things can happen if a potential buyer points out flaws on your car that you didn't see or acknowledge before he or she does. First, it can be embarrassing. Second, it makes it seem like you don't know your car very well. Third, it now gives control of the transaction to the buyer. If the buyer is pointing out things that come as a surprise to you, or that you're trying to hide, the buyer will gain confidence in his or her ability to negotiate the sale and you are in the position of having to defend what is, really, an indefensible position. However, if you mention known issues before the buyer finds them, you gain credibility. When you know about any issues or flaws you can adjust the price accordingly, inform your buyer and remove those issues as bargaining points.

Step 2: Car Preparation

When preparing to sell your car, be aware of smaller things you can fix easily and inexpensively. A few minor adjustments and repairs might get you a better price by making the vehicle more desirable.

Simple Gas Station Maintenance Helps
Check the tire pressures and all fluid levels. Sometimes things like minor road noise, or the steering wheel pulling to one side or the other, are caused by nothing more than improper tire pressures. Having the oil, water and windshield washer fluid at the proper levels can help avoid questions the buyer may have about car care.

Clean-up the Interior
Scrutinize the interior. Clean up the old hamburger wrappers and French fries and pick up the dirty socks left by your kids. If you aren't going to have the car professionally detailed, at least take it to a car wash and request a wax and complete interior vacuuming. If you have bumper or window stickers on the car, take them off before washing it. People may not agree with your political views or care where you went to college. These things give the car a personalized, cluttered look and detract from its value. Unless you live in an area where window tinting is generally accepted as a benefit, such as Phoenix or Las Vegas, remove the tinting. Trust us on this one; it will help sell the car.

It's important to understand that money you spent and things you have done to personalize the car are more likely to detract from its value rather than add to it, because almost no buyer will want a car that's been personalized to someone else's tastes and preferences. This includes items such as aftermarket wheels and tires and body accessories like spoilers and air dams.

Only One Chance for a First Impression
Remember that first impressions are important, and even the smallest thing that you have become oblivious to can turn off a buyer. After you've cleaned the car inside and out and topped off the fluids, check it again. Don't you agree it now looks better? Aren't you now more confident about the condition of your car? These small steps may take a little time, but they don't cost much and can make a difference of hundreds or even thousands of dollars in your final selling price.

If there is some major problem with the car, you need to fix it or accept that it will not only drastically reduce the value to a buyer, but will also drastically reduce the number of buyers even wanting to look at it in the first place. After all, would you want it?

Step 3: How a Smart Salesperson Negotiates

So you've decided to sell your car to a private party and you're thinking about placing an ad online on eBay Motors or in the local paper.

Once you have placed your ad, get ready for the calls and emails. All buyers will have questions; are you prepared with answers? You may have an idea of what you need to say, but it's easy to get sidetracked by odd questions. You could be approached by a caller who tries to set you up for a lowball negotiation or by an outright scam artist. By following a simple plan, you can avoid such traps and take charge of the negotiating process so a fair deal for both parties can be reached.

Know What to Say
You may not think memorizing a script is necessary, but take a tip from the pros and create some notes you can refer to when you're on the phone with a prospective buyer. The main idea is to write down things about your car and go over them, becoming comfortable with the facts and understanding what information you and the potential buyer need to exchange.

Describe the Car
Ask the caller's name and use it to personalize the transaction for both of you. You'll have to be prepared to discuss the year, make, model, mileage, color, type of upholstery, the sound system, condition of tires, service history, any crashes in which it was involved, any extras and accessories -- in short, anything and everything about the car. If you aren't sure what the upholstery color is called or if your stereo is considered premium sound, find a dealer near you and ask it for assistance, as these kinds of details may make or break a sale. Describe the vehicle in a positive manner but don't leave out obvious negative points the potential buyer is going to notice right away, anyway. 

Discuss Service History
If you have all of the service records, let the buyer know. If not, try to find as many as possible. Records of any recent work will help, but only if you know how many miles or months ago the work was done. Proof that you've cared for your vehicle adds to its value.

Admit to Accident Repairs
Be honest about any paint or bodywork. You don't have to describe every little ding unless there are a lot of them, but you should definitely tell a caller if there has been major accident damage. Be prepared to show proof that it was repaired properly.

You may also want to put the buyer's mind at ease by providing a vehicle history report. An AutoCheck Vehicle History Report may identify major problems, including past accidents, flood damage, odometer discrepancies and the existence of a salvage title. You may want to obtain an AutoCheck Report on your vehicle, then provide a copy of it to each prospective buyer. You don't want to be caught off-guard if a buyer arrives with his or her own AutoCheck Report and then informs you about a problem or discrepancy in the car’s history.

Be There, Be Ready
If you really want to benefit financially from selling your car yourself, you need to make the commitment and take the responsibility to be there, ready to answer the phone and show the car. This will mean weekends spent near the phone, and weekend and evening appointments to talk to and meet the buyers. If you choose to take off all day Saturday because you want a little time at the beach, and you don't get back home until late, then most of your potential buyers will be talking to your answering machine instead of you. And, while they're waiting to hear back from you (after your day at the beach), they'll find something else to buy.

Step 4: Know What Not to Say

Before talking to potential buyers, it's a good idea to jot down some notes on what NOT to say. This is important, because the negotiation for your car begins the moment you start discussing the sale.

Don't Quote Your Lowest Price
It's OK to say you will be flexible on price, but never give your lowest price to someone who has never seen the car. Politely request the buyer looks at the vehicle first and even has it inspected, if desired, before you discuss the final price. Some buyers think they are being smart by shopping for the cheapest cars over the phone when, in reality, they are eliminating the nicest cars from their lists.

Don't Reveal Personal Information
When dealing with complete strangers, be safe. Don't reveal personal details about yourself. It's unnecessary and potentially dangerous. Never say things like, "I live alone," or, "No one is home during those hours."

Step 5: Commit to a Meeting Time and Place

If the conversation is going well and the caller would like to see the vehicle (and don't be afraid to ask), agree on a time and place to meet. This is important, and for two reasons. First, if someone says, "I'll come by sometime on Sunday," you will likely be stuck waiting around all day. The second important factor is commitment. Make an agreement for a firm commitment for a specific time and place. People that have made an appointment are more likely to show up or at least call if they can't get there. Pick a time and an environment that is safe for you. Get the other person's phone number and, if he or she doesn't show up for an appointment, call and find out if there is still interest and if things can be re-arranged for later.

Never Negotiate Over the Phone
Beware of buyers who are setting you up for the double negotiation over the phone. On the initial phone call, they might try to commit you to a lower price (sometimes even saying, "I won't hold you to it"), but when they come to see the car, the nitpicking begins and the negotiation starts at the lower price you inadvertently quoted. Others will even negotiate the price, then ask to have the car inspected and try to start the process all over again -- just to wear you out!

You can eliminate most of these situations by simply saying, "I cannot negotiate a price until we both know what we want out of this transaction. Please come and look at the car first." If the caller gets insulted and hangs up, don't worry, you haven't lost anything except a troublesome buyer and you've saved yourself a lot of frustration.

NOTE: If too many people are hanging up, your asking price may be too high, so be sure to check the Blue Book^® Private Party Value first.

Step 6: Conduct a Safe and Well-Planned Test Drive

Now that the car is ready, it's time to prepare for the test drive. Plan out a route with two things in mind: Safety and convenience.

First, let us recommend a few things about your safety, which is the most important issue when showing your car. Always introduce yourself with your first and last names and ask the same of your prospective buyer. It's OK to have a friend with you while you make the introductions so the buyer is aware that you are not alone. Never just hand someone the keys to your car to drive, even if the buyer says something like, "I'll leave my car here with the keys." We have heard of cases in which the car that the alleged prospect was driving was stolen.

Test Drive Wisely
At all times, you need to supervise how your car is being driven and that it is not being abused. A reasonable person will realize that your car is important to you and that you are not accustomed to allowing others to drive it. Generally, we would prefer not to go on a test drive with too many other people. At the least, it's distracting, and you don't want to be outnumbered. Allow the buyer and spouse to drive and, if they have a friend that is their advisor or mechanic, that person can drive next.

Whenever possible, avoid late-night drives in unpopulated areas. If the prospect wants to get out and look around the car while you are on the drive, remove the key from the ignition and keep it with you. Chances are the person who is interested in your car is not from your neighborhood, so it's appropriate for you to politely recommend and determine the best places to demonstrate the vehicle.

Test Drive for Convenience
The route should be convenient. While you probably want to have a combination of driving conditions in mind, so you can best demonstrate how the car performs, you don't want a route that is scary or uncomfortable for the prospective buyer. If a person has to merge onto a busy high-speed highway or unfamiliar street, it could be uncomfortable, or even dangerous, and the buyer's impression of the car could be tainted. Quiet neighborhoods with no surprises, such as blind corners or sudden dips, are best.

First You, Then Them
You should drive the car first so that you can explain all of the controls and the car's operation. Then, when the prospect gets behind the wheel, he or she will be more comfortable with the car. And always maintain control of the keys.

Step 7: Get to Know Your Potential Buyer

The main purpose of the test drive is to present your car in the most positive light and to determine if you are dealing with an interested, qualified buyer. If you use this opportunity to get to know the buyer, the process will be relatively comfortable and can save a lot of time.

Make Conversation, Get Information
Try to find out as much as you can about the buyer. Ask him what he is driving now. Find out why she is looking for this type of car. If safety is a concern, point out the airbags, anti-lock brakes and other safety features on your car. Let the buyer do most of the talking. If the prospect really needs a minivan but wants to drive your sports car, ask why; after all, you don't want the buyer to be wasting your time. If the buyer needs to sell a vehicle before buying the next one, you definitely don't want to take a deposit to hold your car while he or she works out a personal financial situation. The other person's financial situation is not your concern.

Uncover the Buyer's Doubts
Let's assume the test drive went well. At this point, the potential buyer may want to make an offer. Although this might seem like the perfect moment to start talking numbers, you still need to establish a few things.  Find out if the buyer has any remaining questions. Be as direct as the situation requires, to eliminate problems later, and make certain all possible negotiating points are covered before you start talking about money.

Professional sales people talk about the product first, then the money. If the buyer isn't first interested in the car, talking about the money is pointless.

Step 8: Omit Possible Objections

In truth, the negotiation began the moment you started talking to the potential buyer. Each piece of information shared during the entire process will ultimately have an influence on what price that person is willing to pay.

Organize Your Service Records
Go over your car's service history in as much detail as you can. The service receipts should be organized in chronological order and be as complete as possible. Most likely, you will not have complete records for every service done on or before the time it was due, or a log book recording every time you put in gas, added oil and checked tire pressures - but you have probably retained at least some service records. The more proof you have that your car has been serviced properly, the more desirable it will be when it comes time to sell.

Firmly Establish the Vehicle As "AS IS"
If the buyer wants to go straight to negotiation, make certain you have established that the car will be sold "AS IS," and that anything found later will not be subject to renegotiation. If the prospect wants to have the car inspected, fine, but it's at the buyer's expense and you don't want to wait so long you might lose another buyer. If fact, before certification programs brought much-needed standardization of inspections and reconditioning, we used to recommend that buyers have a qualified mechanic check any used car they were serious about buying, even if it was from a dealership. It gives both parties peace of mind.

Be Aware of Clever Tactics
Don't be fooled by a double-negotiator, which is an apparent buyer that negotiates a price, only to later decide to have the car looked at by a mechanic. When that buyer comes back with a list of needed repairs, he starts from that lower price, to which you have previously agreed, and then works downward from there. Even if a person's intentions are honest -- and most are -- it's still best for all parties to know what they are dealing with up front.

Step 9: Find Out How the Buyer is Planning to Pay

Once your buyer has established interest, it's a good time to discuss how he or she plans to pay for the car. As a good general rule, private party sales are cash deals; the buyer pays the total up front, either with cash, a cashier's check or money order. You want to make certain you get the money and a private party seller is under no obligation whatsoever to finance the buyer. If there is a willingness to invest money in the process by paying for an inspection, the buyer is probably serious. If the buyer is uncertain about how the car will be purchased, you may be willing to be helpful and mention the many financing options available. RoadLoans.com offers financing on private party loans. But you have no obligation to help the buyer with this; the money is, after all, his or her concern. You just need to make sure that the buyer has things in order before completing the deal. Now is the time to eliminate financial surprises. What you don't want to do is hold on to your car and turn away other buyers for someone who has financial issues.

When the inspection is complete or your buyer has all the information needed to make a decision, the bargaining begins. If you have done a good job, and handled all the doubts and questions your buyer may have posed, the negotiation of a final price should be relatively easy.

Remember that it is not your responsibility to fix someone else's financial problems. If a person is looking for a car, making phone calls and showing up to look at a car, then he or she should have the money to pay for it.

Step 10: Bargain With Your Buyer, But End with a "Win-Win."

Most people assume, understandably, that your asking price has some room for bargaining. You're the same when you're a buyer. If your car is perfect and you have already picked a price that you feel is fair for the market, then you may not feel the need to reduce the price. Perhaps you even put the word "firm" after the price listed in your ad. We feel that there are two problems with that approach. The first is that very few cars are absolutely perfect, complete with service records. The second is that people want to feel like they've made a great deal.

Even when dealers sell near-perfect cars, they still allow for at least a certain amount of negotiation, with the result being the buyer feels that he or she got a good deal. Every good salesperson knows that a good deal is one that leaves all parties satisfied; the buyer ends up with the vehicle, the seller has the money and everyone involved feels the price was reasonable. The key, of course, is to leave a cushion for negotiation in your asking price.

Three Common Tactics Buyers Use to Reduce the Price

1) "The car needs some work"
This is where your preparation pays off. If you've done everything right, you already know the condition of your car and have discussed it with the buyer. In most states it's your responsibility to make sure the car passes smog requirements, but it's not your problem if the car will be due for a service in a few thousand miles. Every used car needs some work of some sort; that's why it's a used car. So what? Good dealers will do impending services to make sure customers are happy when they come back to the service department, but dealers face more liabilities and get more for their cars. 

2) "I've seen cars like this in the paper for 'X' dollars"
It's amazing how many buyers will say they have seen cars just exactly like yours, but for a lot less money. If some fellow makes such a claim, tell him he ought to buy the other car. Those other cars almost always have higher mileages, or have been crashed, or have some other problems -- if those cars exist at all. A truth of the car business is that if it involves new cars, a buyer can indeed find "another one just like it" at another dealership. But with used cars, whether at a dealership or through a private party, the"other one just like it" almost never exists.

3) "I can only afford 'X' dollars"
That may or may not be true, but that is not the seller's problem.

Ask Yourself the Tough Questions
The entire exercise of selling your own car comes down to this: Are you getting a lot of calls? Are you being offered enough money? Do you want to spend another weekend at home taking calls and showing your car to strangers? Only you can answer those questions, and that will determine what you finally accept for your vehicle.