Car Selling 101: Everything You Need to Know

Have you ever had thoughts about driving another car? Perhaps one with a bold exterior and high-sitting wheels. Or how about one with technology and safety features that are better than other cars? It’s completely natural; there are many, many new and used vehicles out there that are worth checking out, and wanting to peek inside their stylish interiors is a bonus when car shopping. However, what does that mean for your old car? You don’t just want to haul it off to the junkyard to be crushed. I mean, you made an investment, and that entitles you to a return. As much as you may feel odd about letting go of the vehicle you have had for so long, everyone has to do it eventually—and probably more than once.

You have a couple of options for your current ride: you can pass it down to your kids, give it to charity (yes, you can donate cars working or not), send it to the junkyard (which I highly do not recommend), or sell it. While it can be nice to pass it along or donate to the less fortunate, many people do not have the luxury to let their current car go without getting some money in return, especially if they are purchasing a new ride for themselves. Gifting, donating, and junking are simply not lucrative options. At some point, most of us have had to say, “I need to sell my car.” While on the face of it, selling a car seems pretty straightforward, there are some considerations a seller has to keep in mind.

Depreciation

No matter what you use your car for, if you own a vehicle, you’ve probably faced the depressing reality of depreciation—the loss of value over time. Did you know that car depreciation happens the minute you drive a brand-new car off the lot? Most cars lose around 20% of their value within the first year alone. While depreciation is unavoidable, there are ways to calculate how much value your car has lost. Many free calculators are available online, and you can even use them before making your next purchase. The more you keep track of your car’s maintenance and appearance and are mindful of how much you are traveling, the more you can slow its depreciation.

How is the market value of a car determined? First of all, it is good to remember where you are. Vehicles here in the South will not have had to face rough winters and road salt, but the constant local humidity will take its toll. Instead of checking on the national average of the vehicle you’re driving, start with local prices. You never want to look to third parties for this—places like Facebook MarketPlace, Offer Up, etc., but industry sources that can provide you with reliable data.

There are other factors that you’ll need to consider, too, like your car’s mileage, condition, and, of course, make, model, and year. If this all sounds a little confusing (which it can be without the right tools), then I suggest Tradepending, an online tool that can help you balance all your car’s factors and calculate a fair asking price. It makes the process much easier and gives you the answers you need much faster than working it out yourself.

Value

One of the major aspects of setting a price for your car is how it looks. What kind of appearance issues may affect your selling price? It all depends on the type of car you have and the purpose of that car. For example, if you are driving a truck and most of your damage is in the bed and not the cabin, it may affect its value based on whether that buyer is looking for a comfortable ride or one that can handle a tough job carrying heavy loads. You also want to do your best to maintain its exterior because, while it may be superficial, nobody wants to drive around in a car that looks like a lemon, even if it isn’t one. Other factors that can affect the sale value of your car are things you may not even think of, like stickers, cloudy headlights, and window tints. Try to remember that not everyone has the same taste as you; you want to do your best to strip down the car like it is the first day it arrived on the lot.

Can You Sell?

Like the coming and going of seasons, there are business seasons. Just as there is a “right time” to sell lemonade on a hot summer day instead of freezing winters, is there a “right time” to sell your car? Many people might argue that right around April is a great time to sell because some buyers will use their tax refunds to upgrade from their current car. In January, some people like to make a clean start with the new year and keep their resolutions to themselves. However, it is not the time of year or “right time” to sell a car rather than the car’s age that matters. A car’s age can determine how fast you will be able to sell. Typically, that magic number is eight. It will be more beneficial to have a car that is eight years old or less to sell within a reasonable timeline. Mileage, technology and safety features, and style all combine to decrease the demand for older cars.

How about a car that you’re still paying for? Can you sell your car even if you have not paid off the loan? In short, yes. However, if you are privately selling—meaning you are not trading in or selling to a dealership that handles that side of things—things can get complicated. Although you can sell your car privately to a buyer while you still owe money, you can not transfer the title until the debt has been resolved. Most people get around this by using the money they get for their car to pay off the rest of their debt, then they can transfer the title. This can work more smoothly when you work with a dealer.

Know Your Buyer

Besides selling the car to get it off your hands, there are a few more factors to keep in mind. Who is buying my car? Are they car dealers? Is it a random stranger? Why are they interested? Knowing what they plan to use the vehicle for can affect your approach to selling it to them. Also, and importantly, if it is a private buyer, do they have a license?

Always be careful when it comes to buying or selling big-ticket items. There are always scammers around, and you don’t want to end up with a sour taste in your mouth after the sale. Sell your car with someone you trust, ensure payments go through, have all the necessary contact information, and remember to breathe. Selling a car can bring about many emotions, especially if it is your first time or you have had the car for a long time and are emotionally invested. That bittersweet feeling is a part of life, and like the car you are selling, you have to move on.

The End of One Chapter and the Start of Another

If you have a car and want to move on, the best and most popular idea is selling it. Even with car depreciation and watching for scammers, you can earn a good return on the vehicle you are ready to part with. Keep track of the value of your car, remember to “know your buyer,” keep your car looking sharp until you have closed the deal, and everything should go according to plan. Selling your car might be the best thing you’ve ever done with it. It’s time to turn it over to someone else to have adventures with.

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