How to Sell a Car: 10 Steps for Success

Quick Facts About Selling a Car

• When selling your car, choose between an Instant Cash Offer, trading it in at a dealership, or selling the used car yourself.  
• Even if selling a car privately, it’s wise to get backup offers from one or more dealerships for leverage.
• Selling a used vehicle yourself typically brings the most profit, but requires caution.

When selling your car, you can trade it in or sell it privately. Want to sell your car today? Get your Kelley Blue Book Instant Cash Offer. Each has pros and cons for speed, convenience, and profit. Here’s how to choose the path that works best for you and safely get the most money.

See our steps below and use our quick links to jump ahead.

Steps for Selling a Car:

1. Different Ways to Sell a Car
2. Documents to Gather to Sell Your Car
3. How to Prepare Your Car to Sell
4. How to Choose the Right Sales Price
5. Advertising Tips and Tricks
6. Safety Tips When Selling a Car Privately
7. What to Know About Presale Inspections
8. Tips for Price Negotiations
9. Paperwork Checklist
10. Payment Options

1. Different Ways to Sell a Car

When putting your car on the market, you’ll want to decide whether to trade it in at a dealership, sell it yourself, or get an Instant Cash Offer. The value of your car will vary depending on which method you use. Each option has pros and cons, such as the speed of sale, costs, and taxes.

Why Trade in Your Car?

• Fast and convenient.
• No costs for listing and selling.
• No texts, emails, or personal calls.
• Potential to reduce sales tax on your new car.

Why Sell It Yourself?

• Negotiate directly with buyers.
• Get paid more for your vehicle.
• Save money because no dealer overhead costs.

PRO TIP: By using our Private Seller Exchange, you can sell your vehicle with the assurance that you’ll not only get more money but also exchange funds and the title in a safe environment.

How to Sell a Car Privately

While many online marketplaces exist, you can sell your used car privately by listing it on Kelley Blue Book and our sister site, Autotrader, with safety in mind. We offer an online private seller exchange to help you find qualified buyers in a secure environment. Once you gather all necessary documents, including the car’s title and service records, you can clean up your vehicle, take photos, and upload them to the site. If requested, you can also take buyers on a secure test drive and manage an inspection. When a buyer is ready to purchase your vehicle, payments can go through the built-in escrow service, which holds the title and will release it to the purchaser when the time comes.

Why Use Instant Cash Offer?

• Quick and easy.
• Can be redeemed immediately at a participating local dealer.
• No obligations.

PRO TIP: To get a sense of what you can expect from any of these methods, compare the Kelley Blue Book Private Party Value and Trade-in Value. Then check out the Kelley Blue Book Instant Cash Offer. The difference could also be the deciding factor.

RELATED: 5 Best Ways to Sell a Car

2. Documents to Gather to Sell Your Car

The selling process begins with collecting your car’s paperwork. Do not overlook this crucial step. It’s important to tackle this before you offer to sell your car. You’ll be glad you did. 

What Documents Do You Need to Sell a Car?

• Car title. Keep your car title accessible but in a safe place for selling the vehicle.
• Service records. Show maintenance history to boost price and buyer confidence. These days, regular oil changes signal good upkeep to any potential buyer, who will see that the car is well cared for. Service records will be great to show any interested buyer. No receipts? Ask your dealer or mechanic for a summary.
• Original sales paperwork. Use your original sales paperwork or window sticker to confirm trim level and features that may increase sales value. This helps you get beyond the basics of year, make, model, and current mileage. For example, a 2021 Honda Accord may be an Accord EX-L, which may include optional high-selling features such as keyless entry, leather seats, or a head-up display. Options can bump up your car’s resale value.
• Vehicle history report. Know what’s in your vehicle history report. Be prepared to answer any questions about accident history.  

3. How to Prepare Your Car to Sell

A broken door lock lever, a cracked windshield, the clattering of a noisy exhaust pipe — it’s in your best interest to fix these things before putting your vehicle on the market.

You’ll want to address the bigger mechanical issues unless you plan on selling your vehicle “as is” at a reduced price.

How Can I Increase the Value of My Car When Selling It?

Thoroughly cleaning your car helps increase its value when selling the vehicle. It’s another assurance for potential buyers that they’re getting into a quality automobile.

Consider having it professionally detailed. Basic detailing can cost a few hundred dollars, depending on the size and condition of your car, and where you live. So be sure to shop around for a price and know what you’re getting.

If professional cleaning costs are out of financial reach, you can always do the detailing yourself.

Interior Tips to Sell a Car

• Remove all personal items and debris
• Shampoo carpets
• Clean the dashboard, seats, and mirrors, and otherwise put a shine on all surface areas
• Address and eliminate any odors in your vehicle

Exterior Tips to Sell a Car

• Remove all stickers and magnets 
• Repair dents, dings, and scratches
• Replace any burned-out headlights or taillights 
• Fix windshield chips and cracks 
• Check the brakes and consider replacing them if they’re worn down  
• Inspect your tires and determine if replacement is needed  

4. How to Choose the Right Sales Price

You may think your car drives and shines like new, but its value depends on its actual condition. When determining how to sell a car, it’s important to be knowledgeable and realistic about the sales price.

Some owners tend to overestimate the value of their car, which can lead to unrealistic expectations. If you ultimately set your asking price too high, you could experience trouble selling it.

How Do You Price a Used Car?

1. Consider getting a mechanic’s assessment. The mechanic can identify problems with the engine, plus things you may overlook, like a broken taillight or features you don’t use. Not only will this help you set the price to sell your vehicle, but it can also help before buyers take a look. (See section What to Know about Presale Inspections).
2. Use valuation tools. Kelley Blue Book’s valuation tools will help you get a quick, easy, and accurate value for your vehicle.
3. Peruse local listings. Check local listings to see what other similar vehicles with similar equipment and options are selling for in your area.
4. Take the Kelley Blue Book Condition Quiz. This tool helps you determine your car’s true condition.

Keep in mind that a larger engine and a higher power rating will be worth more when gas prices are low, but can result in a price reduction if the used car market favors fuel efficiency.

Options like leather seats (assuming they’re in good condition), navigation, and alloy wheels can be used as selling points to enhance a vehicle’s value. Kelley Blue Book has provisions to include those extras in calculating an accurate value.

More Tips to Consider

When to Price Your Car Higher

• Warranty. You’ll get more money for your vehicle if it’s under a regular or extended warranty, provided it is transferable.
• Regular maintenance. If you’ve kept up with regular maintenance, including if you recently completed major scheduled maintenance, such as a 60,000-mile service, it adds to the bottom line of the sales price.
• New tires or brakes. If you’ve purchased a new set of tires or installed new brakes, you can add them to the sales price.

When to Price Your Car Lower

• Quick sale. Lowering the price helps you sell your car quickly.
• Needs maintenance. If the vehicle needs a major scheduled service, new tires, or brakes, that will lower the price.
• Accident(s). These mishaps will lower your sales price, whether a little fender bender or a major collision.

5. Advertising Tips and Tricks

Once you’ve decided to sell your car privately, reach the largest audience possible by selling it online.

At Kelley Blue Book and our sister site Autotrader, we offer information on how to sell a car online and provide advertising options that put your car in front of thousands of active shoppers in your area in minutes. You can stand out to buyers interested in your car with a detailed description and several good photos.

The sites let you list your car for sale and transact safely because they only work with verified buyers and sellers and set triggers to stop scammers. The sites also follow strict payment protocols, including using a secure escrow service to exchange private funds in a safe environment.

Selling your car online also allows you to field questions first, which will help you weed out any unlikely buyers and limit your time showing the car in person.

What to Include in a Car Advertisement

• Start with a brief description. Highlight your car’s most in-demand features, such as low mileage, high MPG, any remaining warranties, and special features like autonomous driving.
• Mention why you’re selling the car. Buyers want to know this most of all, so deal with it upfront.
• List the vehicle’s condition. Be honest about the vehicle’s condition and list the vehicle identification number, or VIN, to reassure buyers that you’re not hiding anything. The VIN allows potential buyers to search vehicle history easily.
• State your asking price and negotiating terms. Begin by posting your car’s Blue Book® Value, followed by your asking price, then explain why you’re asking more or less than the Blue Book® Value. State whether the price is “firm,” “negotiable,” or “best offer,” as this will help you target buyers.
• Define acceptable payment forms. Include information about the types of payment you can accept, including touchless online payments, certified checks, or an escrow service.
• Include lots of images. Buyers love to feel like they’re inside the car, so include several exterior angles and close-ups of the interior, dash, and engine. Take a few videos inside and out for serious buyers that you can send during the process.

Learn about posting ads and costs now on Kelley Blue Book.

[Editor’s Note: Nothing annoys me more as a car buyer than a seller who lists their car without listing a price. That’s fine if you want to enter an auction, but you’ll waste a lot of your time and shoppers’ time if you don’t clearly state your price. It’s OK to add “FIRM” to your price, but expect negotiations to crop up anyway. — Jason Fogelson, managing editor]

6. Safety Tips When Selling a Car Privately

When you sell a car to a private party through an online marketplace, including Facebook or craigslist, you’ll want to remember these safety tips to ensure a positive outcome for everyone involved. By following these tips, you’ll be better prepared to make decisions as you navigate the sales process to a private party.

RELATED: 7 Ways to Protect Yourself When Selling a Car

Expert Strategies for Safe Transactions

• Meet in a safe area. Meet potential buyers in safe areas, such as well-trafficked retail or restaurant parking lots with security cameras. Local police departments’ “online safe zones” can also be an option.
• Bring a friend. Always bring someone with you for a test drive or even the sale of your car.
• Tap into a verifiable escrow service. For a fee, an escrow service takes a buyer’s payment until the deal is done. This type of third-party service protects both parties from fraud. If the buyer suggests one, check the source first before agreeing to anything and determine who pays the fees. Beware of fake escrow services. Use only verifiable and trusted escrow services.
• Choose only legitimate forms of payment. Cash is king, but not so much for large transactions. Stick to online forms of payment, if possible, or escrow services. As a last resort, only accept cashier’s checks from reputable banks or credit unions and confirm funds prior to acceptance. However, it can be hard to distinguish between a real cashier’s check and a fake one. So, to ensure a safe transaction, take a cashier’s check only when you can meet the potential buyer at their bank, because you can verify the funds on the spot.

PRO TIP: Never take a money order, certified check, or personal check from someone’s bank account. If you encounter a problem, you may not find out until your car is long gone with its new owner.

Create a Paper Trail

When selling through a dealership, the paperwork is handled for you. However, you must keep track of the paperwork when selling to an individual.

• Title transfer: Each state has different requirements for transferring a vehicle title. However, most states require the seller and the buyer to complete paperwork to ensure the transfer is legal. Typically, the seller signs and dates the back of the existing title and adds the sale price and the exact odometer reading before handing the keys over to the buyer. Do not round up on your odometer reading. Keep it exact. Once you let the buyer drive away, you do not want to be legally held responsible for anything. TIP: Make a copy of both sides of the signed title for your records. Use a smart device to take photos of the documents. Read our story on how to sell a car when you don’t have a title.
• Bill of Sale and Release of Liability: Whether or not the state where you live recommends that buyers and sellers complete a “bill of sale” and “release of liability,” doing this is an excellent way to protect yourself during and after the transaction. A “release of liability” form provides proof of the transfer and protects the seller from any future tickets, violations, or other problems with the vehicle after it’s sold. DMV.org, a clearinghouse of all state DMVs, provides a sample Bill of Sale and a Release of Liability information. Send in the signed “release of liability” to your state DMV. This is important to ensure that the seller is not held responsible for anything that happens to the vehicle after the sale.
• Remove license plates and turn them in: Let the buyer know beforehand that you will be removing your license plates from the car at the time of sale. Let the buyer make their own license plate arrangements to drive off with the car. Many states require that you turn in your old license plates to the DMV and get a receipt, which cancels the vehicle registration in your name. Taking the plates removes your liability once the car is sold.

RELATED: How to Get a Car Title Replacement

Ways to Protect Personal Information

Before handing over any service records to a potential buyer, block out any sensitive and personal information.

If you originally bought the car from a dealer, remove any contract or completed credit application from your glove compartment or owner’s manual. You wouldn’t want this information to fall into the wrong hands, as it may contain your social security number and any previous addresses.

How to Create a Safe Test Drive When Selling Privately

• Plan ahead. Discuss with the potential buyer their plans and yours, and be honest about your limitations. Don’t be afraid to ask about theirs. When both parties are comfortable, it paves the way for a successful sale. It takes away the guesswork.
• Test drive with others present. When a potential buyer wants to take a test drive, always accompany the person, regardless of what kind of collateral they offer. Ask a friend or family member to join you. The potential buyer may also want to bring someone else along. Only take the test drive if you’re comfortable. Plan a test drive that’s short and sticks to populated areas. Most buyers don’t expect a long test drive. If your buyer wants more time, let the person ask you for it.
• Check your insurance for coverage of other drivers. Check to make sure your auto insurance covers any test drive, and ask to see the potential buyer’s driver’s license before handing over your keys. Take a picture of the license, just in case anything happens.
• Refuse unusual requests. If you feel uncomfortable, say no and come up with alternatives. For example, never drive the would-be buyer to another location. Often, such a request is framed as getting the money or arranging a loan to finish the sale. Instead, tell the buyer to make their own arrangements, leave a deposit, and get back in touch when they’re ready to take a test drive or complete the sale. It’s best to meet the buyer at a safe location like a police station or busy shopping area.

PRO TIP: Get an Instant Cash Offer and compare it to any from private buyers. It also comes in handy as a backup if the buyer’s offer falls through.

7. What to Know About Presale Inspections

Buyers often ask for presale inspections. They are worth the investment because they are just one more tool for putting buyers at ease. 

Some buyers may want their mechanic to take a look under the hood. Getting a presale inspection of your vehicle before you put it up for sale will equip you with information that a buyer will find if they want an inspection. It may also prevent a buyer from needing to get their own inspection.

If the buyer still insists on using their mechanic, meet the person only at reputable businesses and drive separately.

MORE: Car Maintenance Guide: Everything You Need to Know

8. Tips for Price Negotiations

The benefit of using the instant cash offer or selling your car to a dealer is that these methods can eliminate price haggling. When selling your vehicle to a private owner, let the buyer take the lead in negotiations. Ideally, you’ve given yourself some padding on your asking price so the buyer can either accept the price or counteroffer.

• Determine your lowest acceptable offer. Know your lowest acceptable offer beforehand and consider the number of possible buyers you have in hand. The art of negotiation involves feeling confident that other buyers may be out there if you can’t agree on a price. Due to the high cost of new vehicles, some buyers may be willing to pay a higher price for a used car, so bear that in mind.
• Be realistic. If a buyer offers below your lowest acceptable sales price, be prepared to move on. Suggest that they contact you if they reconsider. But if the buyer makes a reasonable offer, be prepared to say yes.
• Bring paperwork. Be prepared to sell your car on the spot if the buyer wants to complete the sale. Remember to bring your car title and all the collected paperwork to the meeting, but keep it in a safe place until decision time. If using the Private Seller Exchange, the site collects the title and payment. Just make sure not to release the vehicle until the payment clears and you get the all-clear.

9. Paperwork Checklist

10. Payment Options

When the buyer decides that your car is the one for them, and you’ve agreed on a sales price, the smartest next step is determining which payment option works best. For example, touchless online payments, such as Venmo, Zelle, or PayPal, may seem safe to collect the payment. However, there are caps for large payments, so these may limit usefulness. All these payment options keep your bank information hidden and your personal information safe as the buyer pays you directly for the car. Any of these methods will help protect a seller against fraud. 

Should I Accept a Cashier’s Check for a Car?

As mentioned earlier, if the buyer wants to pay by cashier’s check, stay cautious about accepting it. While they are drawn directly from a bank, not someone’s account, they can be counterfeit. It’s best to take precautions and use your gut. Meet the buyer at their bank and verify the funds in person during daytime banking hours. Using Kelley Blue Book’s Private Seller Exchange allows for the secure transfer of funds and handles it for you.

Should I Accept Cash When Selling a Car?

Some buyers prefer to pay for a car with physical currency, and some private sellers may ask for payment in bills. Using cash is simple and instant. However, you must weigh those benefits with the disadvantages of accepting cash when selling your car. Carrying a large sum of money might make you feel unsafe, fearing theft or robbery. Another concern for sellers is being vulnerable to fraud if a buyer uses counterfeit bills. If you choose to accept a cash payment, complete the transaction in a safe place.

Editor’s Note: This article has been updated since its initial publication.