Recently, I decided to sell my beloved Lexus since I just purchased a new car. I decided not to trade it in at the dealer I bought my new car from, due to a hilariously low-ball offer. Instead, I shined the Lexus up like a new penny and put it on the market.
I have sold many cars that I own this way, and I am very experienced in how the process goes. Most of the time, I end up selling a car to someone I know and this was no exception. A very good friend of mine bought it for exactly what I was asking for, and I couldn’t have asked for a better transaction.
Selling your own car is a great way to maximize its worth, but it does have some disadvantages. Between scammers, tire kickers, and the work to get the car ready, it will take some effort. It also will take some time, maybe even weeks before it is finally off your hands.
A dealer trade in is the quickest way to liquidate your wheels, but they will only give you wholesale pricing at best unless it is a very desirable model. They will pay you for the car, send it through the service department, then recondition it to acceptable retail standards.
If the car is in rough shape, or in the case of my Lexus, too old to be financed, they will normally send the car to an auction and hope for a good outcome. This makes giving you top dollar for your car a financial risk. You can also normally trade your car in if it isn’t paid for completely and can finance in any negative equity if it isn’t above a bank’s threshold of risk.
The first step to selling your vehicle on your own is to find out what the market is bringing.
A valuation site like Kelly Blue Book is a great option, but even better are sites that sell the car you have. Facebook marketplace, Autotrader, and even local dealer sites are going to tell you what the car is selling like in the area you live in. Car values can vary wildly due to geography. It is also important to remember that just because a car is advertised at a certain price does not mean it will sell for that.
The second step is reconditioning and repairs. Much like flipping real estate, you want to get the most value in your car with the least amount of money. Start with a good cleaning inside and out. If the car is older or needs more love than you can provide, contact a detail shop to give an estimate to get it back to good.
Next, you need to look at any repairs you can do to ease the mind of a buyer. If it needs tires, brakes, or any safety issues squared away, consider doing them to stave off any buyer’s objections. As a rule, I would never sell a car I wouldn’t want my family to be in. If you decide not to repair it, make a list of things that need to be done and go over it with perspective buyers.
After the car is squared away, you will need to list it. Long gone are the days of putting a for-sale sign on it and parking it in a busy section in town. You need to reach the masses and masses are too busy fiddling with their “dash computer” to notice your jalopy parked at an intersection with a sign in the window.
Most of the time I will advertise a car on my personal Facebook page, like it did the Lexus. If a week or two passes, I will then add it to Facebook marketplace, Autotrader and maybe even eBay. This does have some drawbacks.
Dealing with random people you do not know is maddening for the most part. Between ridiculously low offers, people not reading the ad completely, and regular internet nastiness, selling the car may turn into a part-time job. Scammers will also flood your inbox with promises just to get to your finances. It is a mess sometimes and seems to get worse every day.
Once you have treaded through the many replies you get, you will have to meet the buyer in person, if you don’t get stood up. Make sure this is in a very public area and never your home. Take someone with you and always keep your guard up.
Once you have found someone to buy the car, the negotiations will start. Car salesmen train for hundreds of hours a year to handle such things, and it is not a good place for amateurs. Be firm on your bottom price and the conditions of the sale and get everything in writing. Make sure the title and other paperwork are filled out correctly as the tag office can be unwavering on their rules. Make sure the payment method is legitimate and maybe even meet at your bank for them to verify.
In God we trust, all others pay cash.
While selling your own car has its pitfalls, it’s a great way to squeeze every penny out of your ride in these tough economic times.
As for me, I will see you on the road!
