Step 1: Know the Market

Is your car going to be easy to sell? Is it a hot commodity? Or will you have to drop your price and search out additional avenues to sell it?

Here are a few general rules to answer these questions:

Family sedans, while unexciting to many, are in constant demand by people needing basic, inexpensive transportation.

SUVs are very popular right now and often move quickly, even older models.

The sale of convertibles and sports cars is seasonal. Sunny weather brings out the buyers. Fall and winter months will be slow.

Trucks and vans, used for work, are steady sellers and command competitive prices. Don't underestimate their value.

Collector cars will take longer to sell and are often difficult to price. However, these cars can have unexpected value if you find the right buyer.

Your first step is to check on-line classified ads to see how much others are asking for your type of car. Internet sites allow you to search with specific criteria. For example, select the year and trim level of your car and see how many similar cars are currently on the market. Take note of their condition, mileage, geographic location and selling price so you can list your car at a price that will sell it quickly.
 

Step 2: Price Your Car Competitively

Once you have surveyed the on-line classified ads, determine the fair value of your car.

There are always some exceptions to the rules of pricing, so you should follow your intuition. And be sure to leave a little wiggle room in your asking price. Ask for slightly more money than you are actually willing to accept. If you want to get $12,000 for the car, you should list the car at $12,500. That way, if you get $12,500 - great! But if you have to go lower, it won't be a terrible loss.

You may have noticed how creative used car dealers get in pricing cars. Their prices usually end in "995," as in $12,995. Are we not supposed to notice that the car basically costs $13,000? There is a lot of psychology in setting prices. A product that doesn't sell well at $20 might jump off the shelf at $19.95.

On the other hand, as a private party seller, you don't want to look like a car dealer. Therefore, you might want to take a simple approach and set your price at a round figure such as $12,750 or $12,500.

Step 3: Give Your Car "Curb Appeal"

When people come to look at your car, they will probably make up their minds to buy it or not within the first few seconds. This is based on their first look at the car. So you want this first look to be positive. You want your car to have "curb appeal."
 

Before you advertise your car for sale, make sure it looks as clean and attractive as realistically possible. This goes beyond just taking it to the car wash. Here is a to-do list that could help turn your heap into a cream puff:

Make sure it is washed, waxed and detailed.

Make sure your car is both mechanically sound and free from dents, dings and scrapes.

Consider making low-cost repairs yourself rather than selling it "as is."

Shovel out all the junk from the inside of the car. When prospective buyers go for a test-drive, you don't want them to feel like they've walked into your messy bedroom. Let them visualize the car as theirs.

Wipe the brake dust off the wheel covers and clean the tires with a tire gloss product.

Thoroughly clean the windows (inside and out) and all the mirrored surfaces.

Wipe down the dashboard and empty the ashtrays.

Have all your maintenance records ready to show prospective buyers.

If the car needs servicing or even a routine oil change, take care of that before putting it up for sale.

Have your mechanic check out your car and issue a report about its condition. You can use this to motivate a buyer who is on the fence.

Order a Carfax report and show it to the buyer to prove the car's title is clean and the odometer reading is accurate.

Step 4: Where to Advertise Your Car

Now that your car is looking great and running well, it's time to advertise it for sale. Traditionally, people advertise in newspaper classified ads. These ads can be expensive, but they get results. On-line classified ads, are becoming increasingly popular. On-line ads are particularly effective with hard-to-find or collector cars. In most cases, on-line classifieds reach a geographically wider area of buyers.

Here are the main markets for advertising used cars:

On-line classified ads

Daily newspaper classified ads

Weekly "shoppers" and giveaway newspapers

Bulletin boards at your office, a local supermarket or a college campus

Word of mouth - tell your friends and family you have a car for sale

Put a "For Sale" sign in the car window

Creativity is required when it comes to advertising. Think of unusual places to put ads (skywriting is probably too expensive), and you will get results.

One last word of advice about advertising: if you run an expensive classified ad, be sure you are available to take phone calls from possible buyers. Many people won't leave a message for a return call. So answer the phone - and be polite. Creating a good first impression is the first step to getting buyers to come and see the car in person.

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