When it’s time to move on and part ways with your current vehicle, people often choose to just trade it in at the dealer and be done with it.  It’s easy, convenient, and no hassles.  It’s also a surefire way to get the lowest possible sale price for your vehicle!

It is definitely worth considering selling your vehicle privately instead.  You’ll generally get far more for it, especially if you take the time to do it properly.

I have bought and sold dozens of vehicles privately over my driving lifetime and, in doing so, have worked out the best ways to go about it.  In this article, I’m going to share with you how to get the best price for your vehicle and also how to get it sold quickly.

Tips on How to Construct Your Ad

In your ad, give as much detail as possible about the vehicle, meaning all of the options it has, which transmission, the overall condition, the mileage, the records you have, any existing warranties, recent work done, etc.  If the vehicle has damage/rust/dents, I don’t mention it in the ad but will tell people about it when they call.

To properly price your vehicle, do some research on similar vehicles, look for a handful of comparables.  Ensure you are pricing it in line with these and build in some haggle room in the price as well.   The ‘book value’ you may see on some sites or documentation is near-useless (unless it’s higher than your offer price in which it’s a selling feature!), so always go with market value, based on comparables.

Make sure you give as many contact options as you can.  A home number, a cell, and e-mail address are best.   You’ll also want to ensure that you will be available when the ad goes live to handle calls and to show the vehicle.

Always include at least one picture of your vehicle!  This is critical, ads with no pictures get ignored.  Try to get a flattering picture as well.  I always find a picture of a nice clean interior always gets me more calls.

If you think your vehicle will ‘pass’ a CarFax report, it’s a nice touch to do it yourself before sale and mention this in your ad.

Ensure that you have a clear title to the vehicle.  This means no liens on it, which is what a financing or leasing company will put on when you buy it and leaves on until you pay off the loan.  If you still owe money on the vehicle, this complicates things, as the buyer will likely be spooked by the lien.  Best to pay it off before hand and get a document showing there is no liens.

You will generally sell your car two ways, ‘as-is’ or with the necessary safety and emissions inspections already done.  A vehicle with the latter will always get more attention and sell faster, but sometimes that means spending a fair bit of money on your part to get it all done.  I do it both ways, but prefer to sell with the work done.

Where to List Your Ad

In many parts of Canada, the Auto Trader (www.trader.ca) is still the leader, garnering the most readers and ensuring your vehicle is seen.  If your vehicle is worth more than a couple thousand dollars, it’s likely worth spending the money on an ad with the Trader.  The other popular options are Craigslist and Kijiji, which are both free and both with a wide readership.  I generally list solely with these for cheaper vehicles, but I always put an ad in at these for higher value vehicles, even when I also have an ad in the Trader.  After all, it’s free!

I don’t recommend listing in things like your local newspaper.  Without a picture, most people will never even bother looking here, in my experience.

What To Do Before Your Ad Goes Live

Get your vehicle ready for sale; that means spending some time cleaning it thoroughly, applying touch up paint, etc.  I also always clean the tires really well and spray on some tire shine treatment, even on the cheapest vehicles.   It just makes it look better.

Find all of your service records and compile them all in a folder.  It instills confidence to a potential buyer when you give the impression that you have taken care of your vehicle and can prove it.  Handing over a folder full of receipts almost always locks up a sale for me.

Handling Calls and Emails

When the calls and e-mails start, try to always give clear and concise answers to questions.  I also always try to personalize it, looking for opportunities to give the impression that I am a decent person, someone you can trust to buy a used car from.

Many buyers now ask for the VIN (on your ownership) when they call, so they can run a check on the vehicle.  Have this handy so you’re not fumbling for it.

The Showing

When someone takes the time to actually come and see your vehicle, it’s usually a good sign that they are a serious buyer.  Everyone is busy, and no one wants to waste time.

Show the potential buyer any positive features about the vehicle, mention it again if you have good service records, and downplay any unflattering points about it.

I often print off some ads of comparable vehicles that are listed with a higher price.  Often, those ads are dealer ads or just private sellers that are dreaming, but it looks good to give the impression that you are priced to sell.

They will always want to test drive it, understandably.  You should always go with them!  If I get the impression that someone is not serious, and especially if the vehicle is higher end or performance –oriented, I will not allow a test drive until they give a deposit.  It’s better to discourage the tire-kickers early, to prevent wasting your time.  Sometimes you can even spot them from the phone call and then say things to prevent them from even coming.

Always respond to questions about the mechanical condition by telling them they are free to have a mechanical inspection done on it and that you are completely fine with that.  In my case, saying that has always been enough to instill confidence, and no one has ever actually taken me up on it!  Say it enthusiastically, like you are 100% confident that if they do so, there will be no issues with the vehicle.

Used vehicle buyers are notorious hagglers, so  be ready for lowball offers and long negotiating sessions back and forth.  If you get the sense that they are not serious and only want it if they can get it for a ridiculously low price, just cut them off. Tell them your price is final, and that they can leave if they don’t like it.  In my experience, my buyers are usually the reasonable ones, who will ask for a fair reduction and then stop at that.

Once you have agreed on a price, always get a deposit of some sort.  Never hold a vehicle for someone without this, the first person to hand over some cash is always the one who gets it.

Do not give over the ownership without being fully paid for the vehicle.  Once you sign it and hand it over, it is then their vehicle!  Cash is best, but a certified cheque is acceptable in most cases as well.  If you are at all unsure about the buyer, say cash-only or arrange to go to the bank and transfer the funds together.

Pull your plates off before the vehicle is taken away, and never let buyer use them to transport the vehicle.  How they get it home is their problem, although I’ve often helped them by driving it to their place, taking off the plates there and then getting a ride back.  If it helps finalize the sale, do it!

The Rewards for Your Due Diligence

That’s it, all done!  Definitely some work involved, but I’ve always found it to be worth the effort.  Plus, it can be fun to meet new people, have some good natured haggling, and get the satisfaction of a sale.  I actually enjoy the process.  Hopefully, you can as well, and also put some extra money in your pocket!