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If you don't want people knowing where you live, arrange to
show the car at a park or shopping center near your home. However, keep in mind
that people will eventually see your address when you sign the title over to
them.
Some buyers will want to take the car to a mechanic to have it inspected. If you
have an inspection report from your mechanic, this might put their doubts to
rest. However, if they still want to take the car to their mechanic, this is a
reasonable request. By now, you should have a feeling for the person's
trustworthiness. If you feel uncomfortable or have reason to think they will
steal the car, decline the offer or go along with them.
Be ready for trick questions such as, "So, what's really wrong with the car?" If
you get this, refer them to the mechanic's report or invite them to look over
the car more carefully.
Step 7: Negotiate For Your Best Price
If a person comes to look at the car and it passes their approval after a
test-drive, you can expect them to make an offer. Most people are uncomfortable
negotiating, so their opening offer might take several forms.
"I like the car, but…." This is the softest way to negotiate on the price. They
may not even state that the price seems too high. If they say, "I like the car,
but…" and then lapse into uncomfortable silence, you might consider an
appropriate response. If you really want to move the car, you could say, "How
much would you be willing to pay?"
"What's your best price?" This is a more direct way to probe the seller to find
out how much he or she will come down. If you get this from a prospective buyer,
don't seem too eager to reduce your price.
"Would you accept…?" Now we're getting somewhere. This buyer has thought it over
and is making an offer. But the offer is being presented in a polite manner
designed to allow for a counter offer.
"Take it or leave it." This buyer is making an offer that supposedly leaves no
room for a counter offer. In reality, this buyer might be bluffing. Still, they
are sending a message that they are close to their final price. The only way to
know for sure whether it really is a "take it or leave it" offer is to leave it
- and let them leave. They may return tomorrow ready to pay your price.
The above are just a few of the openers you might encounter. Think of your
responses ahead of time so you won't be caught unprepared. In general, it's a
good idea to hold to your price when your car first goes up for sale. If you
don't get any buyers right away, you'll know you have to be flexible about the
price.
Step 8: Handling Complications
In some cases, you might reach an agreement with a buyer that is contingent on
performing repair work on the car. This can lead to misunderstandings down the
line, so avoid this if you can. The best thing to do is have your car in good
running order while being fully aware of any necessary repairs. If you state
clearly in your ads that the car is being sold "as is," you can refer to this
statement when it's time to close the deal.
Still, a trip to the prospective buyer's mechanic might turn up a new question
about the car's condition. What to do?
This must be handled on a case-by-case basis. If the repair is needed, and you
trust the mechanic's assessment, you could propose reducing the agreed-upon
price by all, or part, of the amount for the repair. If the repair is
questionable, but the buyer is insistent, split the difference, or have the car
taken to your mechanic for further evaluation.
Remember, the older the car, the more a mechanic is likely to find. At some
point, you have to draw the line. You may have to say to the buyer, "True, this
work could be done. But the car drives well as it is. And the proposed repair
isn't addressing a safety concern." After all, a used car - particularly an
elderly one - isn't expected to be perfect.
Step 9: Finalize the Sale
Rules governing the sale of motor vehicles vary somewhat from state to state.
Make sure you check with the department of motor vehicles (DMV) in your state,
and keep in mind that much of the information is now available on DMV Web sites.
When selling your car, it's important to limit your liability. If someone drives
away in the car you just sold, and they get into an accident, can you be held
responsible? There are two ways to deal with this concern.
Once you have the money from the sale (it's customary to request either cash or
a cashier's check), record the odometer reading and sign the car's title over to
the buyer. In some states, the license plates go along with the car. A new title
will be issued and mailed to the new owner. Additionally, in most states, a
release of liability form can be downloaded from the DMV web site. Fill this
out, along with the car's mileage, and mail it in as soon as the car is sold.
This establishes the time at which the car left your possession.
But what if you still owe money on the car, and the bank is holding the title?
One way to deal with this is to conclude the sale at the bank where the title is
held. Call ahead and have the title ready. Then, once money has changed hands
and the bank has been paid the balance of the loan, sign the title over to the
buyer.
In some cases, however, an out-of-state bank might hold the title. In this
instance, it is recommended that you go with the buyer to the DMV and get a
temporary operating permit based on a bill of sale. Then, after you pay off the
balance of the loan with the proceeds from the car sale, have the title mailed
to the new owner. Sign it over to the new owner and the transaction is complete.
Finally, remember to contact your insurance agent to cancel your policy on the
vehicle you have sold (or transfer the coverage to your new car).
Before your car drives away for the final time, take a last look through the
glove compartment, the trunk and under the seats. You might find some long
forgotten treasures you misplaced years ago.
Step 10: After the Sale
In most states, the condition of a used car for sale is considered "as is" and
no warranty is provided or implied. Therefore, if the car breaks down after you
have sold it, you are under no obligation to refund the buyer's money or pay to
have it repaired. If you have sold a car to someone who took it for inspection
at a garage and the mechanic found nothing wrong with it, you have done all you
can to protect yourself and the buyer.
The best way to feel peace of mind after selling your used car is to make sure
you did everything correctly. This means being open about the condition of the
car before the sale and timely and complete in transferring DMV paperwork after
the sale.
When done correctly, selling a used car can be a win-win situation. You have
turned your used car into cash and provided reliable transportation for the next
owner. Focus on the benefits to both parties and you are likely to have a smooth
and profitable experience.
Checklist
Consider market factors affecting the sale of your car (don't try to sell a
convertible in the winter).
Check local classified ads to see what others in your area are asking for your
type of vehicle.
Determine a selling price for your car.
Give your car "curb appeal" by cleaning and detailing it. Fix any problems or
drop the price and sell it "as is."
Get a smog inspection if required by your state DMV.
Consider buying a Carfax (vehicle history) report, or getting a mechanic's
inspection report to show prospective buyers.
Create a "For Sale" sign for your car window.
Post an eye-catching on-line or print classified advertisement.
Make yourself available to answer calls from potential buyers.
Arrange to show the car to prospective buyers.
Negotiate your best selling price by knowing the market and not dropping your
price too quickly. Be patient. Don't let yourself be pressured.
Collect payment for the car by getting a cashier's check or cash.
Finalize the sale by fulfilling all state motor vehicles department paperwork to
transfer ownership and limit your liability.
Remove all personal items from your car before it is driven away by the new
owner.
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