As with most undertakings, when it comes to selling your car or truck, it pays to start with a clear plan. Follow these tips to try to get the most for your car or truck.
What's your car's value?
Start by giving your car a thorough, bumper-to-bumper exam, noting any problems — from tears in the carpet to scratches in the paint and mechanical issues.
Next, consult online estimators or tools to get an estimate of what your car is worth. The better ones ask for your location, so they can reflect the local market. You'll also have to choose the condition of your vehicle. Read the descriptions carefully and try to be as accurate as possible.
An estimator will typically provide a higher value for a private seller than a trade-in. Keep in mind there are advantages and disadvantages to both methods. For instance, with a trade-in, you get convenience and immediate payment. In many states, there's also a tax advantage to trading your old vehicle in, as you'll only pay sales tax on the difference between the value of the trade-in and the price of the new car, not the full price of your next vehicle.
Selling the car yourself requires more individual effort to find the buyer, you may have to wait to get paid, and you'll probably have to handle the entire transaction.
When choosing a price, consider leaving some room to discount it when presented with a counteroffer.
Prepare to sell your car
Though you're probably not eager to spend money fixing something you're about to unload, consider cleaning inside and out as well as under the hood and making touch-ups and necessary repairs.
Remove all your personal possessions and anything that represents your personal stamp on the vehicle — from window and bumper stickers to car ornaments, such as dangling dice. Consider removing any modifications that may hurt your car's resale value.
Take photos
After it's cleaned up, take plenty of photos of your car so you can use them in your sales campaign. Capture all sides, the interior, the trunk and under the hood. Good quality photos with no background distractions are the best.
Advertise
Next, it's time to put your car up for sale. In addition to spreading the word through friends, family, coworkers and social networking, consider using free public bulletin boards like Craigslist. If you're a military service member on active duty, your installation may have a designated parking lot where you can put your car or truck on display. Just be mindful of your safety when meeting possible buyers. Try to select a public meeting place and take a family member or friend with you.
While you should highlight positives — like new tires — it's also important to disclose drawbacks up front. You're doing yourself a favor, too. The clearer a picture you paint, the less chance of wasting time showing your vehicle to people who are turned off by blemishes and defects you didn't reveal.
If you don't plan to budge on the price, let prospective buyers know that, too. For example, you might say "$12,500 firm."
Poor spelling and bad grammar undermine your credibility, so pay close attention and consider having a friend proofread your work.
Close the sale
Just as you've prepared your car to make its best first impression, you should do the same for yourself. Be prompt in returning calls or emails, provide clear, friendly answers to questions and dress nicely when showing it. A neat appearance will go a long way to encouraging others to trust what you tell them about the car.
Safety is a consideration: If you're meeting a stranger, consider meeting at a public site — perhaps a store with a large parking lot. You may also want to bring a friend.
To close the deal, don't be too stubborn on your asking price. Everyone likes to feel like they're getting a good deal.
Finalize the transaction
After you've agreed on the price, protect yourself from the risk of a bounced personal check by completing the transaction at a financial institution where the verification of funds can be received.
The rules governing the transfer of vehicle ownership from one person to another differ from state to state, so research this ahead of time to make sure you have the forms you need. Typically, you'll need to document the mileage. In some cases, you may want to go to the Department of Motor Vehicles office together to make sure you've taken care of all the requirements.
Your state may provide a blank release of liability form you can use to document that the buyer is now responsible for the car. Finally, don't forget to promptly notify your insurance company to adjust your auto insurance. Be sure to update your parking permits, toll passes and any of your other driving necessities.
Selling your car to buy a new one?
USAA Federal Savings Bank offers auto loans.