Page Sections - Fix Up Your Car Before you sell It | Think twice about trading in your used car at the dealer!
Trade-in Tax Analysis | Top Dollar For Your new Car | Driving Records

Sellers have success listing their car online, as millions of people see the ad. Out of state people move to your city, or travel from out of town looking for a car. At online used auto classifieds sites, type in a car to search for and they list all models fitting your criteria.  Forget newspapers, their localized coverage is just too limited.  List your car on the web so the whole world sees it.  Use a site with a money back guarantee in case your car does not sell in a certain time period. Some sites run the ad for one low price until the car sells, a benefit newspapers don't offer.   I've gotten many emails from out of state people for my car.  Buyers might be in town for a weekend to visit someone, buy your car, and drive it back home.   The idea is to blitz the media, and let the world know you have a great car for sale.

Reserve a budget of $75 -$100 to sell your car. 

The world is not beating a path to your car so you have to beat a path to the world. Don't do just the usual one week $35 newspaper ad to sell it. Very few frustrated people sell their car using a one week newspaper ad.  Like a key in a lock, if your green 1998 Camry does not appear during the one week that a buyer is looking for a green 1998 Camry, you're out $35.  Your budget will get you into 3 different classified ad venues like a newspaper for about $35 for a 1-2 week run, and at least 2 popular internet classified ad web sites, usually $20 for a 30 day run.  In newspapers, $35 ad fees are a farce, as they are stingy on the word count.  To give any useable info in your newspaper ad, you'll pay $40-$50. 

     Auto classifieds on the web are much more cost effective than newspapers as they are cheaper, and run 4 times as long.  Why limit your ad to 5 local people who might want your car, when you can put it on the web where there are millions of people doing searches.  For half the price you get 1000 times the exposure. Use online classified sites where your ad stays until the car sells.  Don't park your car on a road to sell it, it can get vandalized, ticketed, towed.

The buyer will want a mechanic to perform a thorough inspection of the car, or you can have it inspected yourself before you sell it so you don't get caught by surprise.  Some people like to use a mobile mechanic service who will go where the car is and check it out, for example National Auto Inspections,  who sends an ASE certified mechanic to inspect the car within 48.  They give you a 4 page inspection for $149. Maybe you can get the buyer to split the cost with you, or just drive the car to a mechanic. 

Expect to get less than your asking price for the car, but more than any dealer will offer.  Dealers scare you out of selling it yourself saying you'll get sued by the buyer, or you'll get robbed or raped (very popular to use on the girls).  Sure there's risk, but I'm more scared at the ATM.  You'll have problems like no shows, so be patient.  Some people are not comfortable with strangers at their house, knowing their phone number.  But millions of people list their phone number in papers all the time.

Fix Up Your Car Before you sell It

Put a good wax job on the car, vacuum the inside, and gloss up the tires, appearance is everything.  If there's any burnt lights or fuses, take care of it.  Buyers get picky once they see little things like burnt bulbs are not replaced.  Consider adding a few accessories to the car to make it even more attractive, like The Club steering wheel lock or other perks.

Car Dealers And Their Trade-In Scams

Don't fall for the car dealer's mind tricks. If they offer you market value for your trade-in, they are making up for it by charging you MSRP for the car, or padding on needless overpriced extras.  Dealers love to convince you not to sell privately, that you'll be raped, mutilated, and dumped off I-75.  I'd prefer that to the treatment at some car dealers.  They use scare tactics so they can low ball you on your trade-in and rape you themselves.  Sure buyers will talk you down in price too, but they are not as good as a dealer, and you have done your research.  Just make sure there are a couple of able bodied men around in case trouble erupts.  I've never seen a problem.  NEVER let buyers test drive your car alone, even if they leave their car behind as collateral.  Your insurance won't cover damage that occurs from another driver if they are not family, and people can bring a stolen car, leave that behind, and steal your car!  Always go with the car.   Verify they have a valid drivers license and insurance.  If you let an unlicensed driver behind the wheel, an accident happens, and they kill someone, you could be at fault.  If they want to bring your car to a mechanic, go with them. A mechanic is not an appraiser, so don't expect an appraisal.

Are You Buying A New Car After Selling Your used Car?

Some people sell their car to get cash to buy a new one. Be sure to use the new car buying sites like InvoiceDealers,  Autoweb, Car.com, Autobytel, CarsDirect, and AutoUSA.  Before looking for a new car, you better know how much you have to spend.  If you have cash already, you're set.  But if you expect to borrow money for a car, you'll need to qualify for a loan first.  The banks usually want to know what car you are buying and will lend you money to buy any new car, or a used car up to 4 years old.  Any older and no loan.  This is why you are at a disadvantage when you trade in a used car over 4 years old at a dealer, because the car is worthless to them.

Maintain Good Maintenance Records

A powerful selling tool is a neat notebook with all your maintenance records, especially oil changes.  Every time your car is serviced, add the receipt to the notebook, you'll never lose track.  When people see your notebook with maintenance records, it makes a good impression, and they're more likely to buy from you.  How many sellers did they visit who were as organized as you with your CARFAX report and your maintenance records?  Probably none at all.  Remember, you are competing with thousands of other local used car sellers.  It's even more important when you are selling a Camry or Accord to separate yourself from the crowd, because these are the most common cars out there, a dime a dozen.  Do not sell a car without a CARFAX Report.

Create a COLOR flyer about your car to give to possible buyers.  Flyers have more detail than you can afford to put in a newspaper ad. If you were the only owner and non-smoking, then make it known.  People like cars with only one owner, it's easier to trace what might have happened to it, and non-smokers tend to be cleaner people who take better care of their cars.  If your car is a standard, expect less cash than an automatic, as clutches are good for 4-5 years.  It may be clutch time soon, so you'll have a much harder time selling your car.  Besides, most drivers can't drive manual transmissions, only automatic.

Make sure your tires are all properly inflated!

Think twice about trading in your used car at the dealer!

Dealer's never give you fair market value for your car.  They offer wholesale value, which is much less.  This is so they can sell your trade-in and make a profit.  Used car pricing sites list  "Market Value" and "Wholesale" or "Trade-In" values, which are much less.  Dealers make it appear they are giving you a lot for your trade-in, but don't be fooled.  They are shuffling dollars around, charging you MSRP, or higher interest, or piling on wasted extras like rust proofing, paint sealant, and extended warranties.  They cry on your shoulder that they'll get nothing on your trade-in.  They'll offer you $1500- $6000 less than market value.  If they don't repair the car, it's all profit.  As you cry over their "loss", here's how they profit from you and the next owner of your trade-in:  They put your trade-in on the lot a week later for $1500 more than fair market value, and stick a "No Haggle" price tag on the windshield.  Now, they'll profit $3000 on your trade-in (less their cost to repair it) thanks to the $1500 contribution made by both you and the future buyer.

Always treat your purchase of a car and trade-in as 2 separate deals.  A trade-in gives dealers 2 variables in the sales equation.  By paying cash with no trade-in, everything is on the table, the dealer has no where to run, nowhere to hide.  He can't play cash flow shell games, giving you "A good deal" on your trade-in, but fleecing you in the back end of the deal.   Tell them you are not trading and negotiate a selling price for the new car.  Now they have no "shells" for the cash flow shell game. After they agree on the new car selling price, tell them you want to trade in and how much you want.  They will either accept it or not, but at least you'll know how low they will really go on the selling price of the new car.

Your Trade-in is worth a fixed amount no matter what you buy, whether you finance through them, whether you buy extended warranties or optional extras.  Don't let them condition you into thinking otherwise.

Seasonal Pricing of 4 wheel drive vehicles

If you are trading in a 4 wheel drive vehicle such as a Ford Explorer in the northeast, an Explorer can be worth more in the fall than in the spring because it can be considered a seasonal vehicle due to the 4 wheel drive.  There is a big wholesale market out there for cars which are 3 years or older that will change over the seasons.  In the spring and summertime when a 4 wheel drive is not really necessary, you may get less for the vehicle than you would in November when there could be buyers for them.

Even with "book" prices, it's difficult to determine the value of your trade-in, because each car is different.  Mileage and wear and tear are the biggest issues.  "Trade in buyers" concentrate on the trade in, and fall asleep during the rest of the deal blinded by the cash flow shell game the dealer played on them.  The dealer just got their money on the back end, not the front. People brag about getting more than what they asked for their trade in, chuckling that they screwed the dealership.  By selling the car yourself, you have eliminated one method for the dealer to cheat you out of your money.  Besides, don't you want to keep as much profit as possible out of their pockets and in yours?   Don't feel guilty, they are trying to keep money out of your pocket .  Now you saved 33% of the money you could have lost.  You can use that money toward a down payment if you can get transportation until you buy a car.  Or, sell the car after you buy the new car and send in the cash as a large "principal" payment.   Verify your bank allows you to make extra principal payments.

Trade-in Tax Analysis

Don't nix the idea of a trade-in without analyzing your situation, there's a tax advantage to trade-ins.  You usually pay sales tax on the difference between the new car and the trade-in. If you are buying a $25,000 car and your trade-in is worth $10,000, in Florida you'll pay 6% tax on the difference. Total outlay is ($25,000 - $10,000) + tax on difference = $15,000 + $900 in tax = $15,900.  But supposing you got $12000 for your trade-in selling it yourself through the newspaper.  Now the total cash outlay is $25,000  + tax  = $25,000 + $1500 in tax = $26,500.  When you sell your old car and receive the $12000, your effective cash outlay will now be $26,500 - $12,000 =  $14,500.   You can see in this case that you saved $1500 selling the old car yourself.  This was only possible because you were able to sell the car for $2000 more than the dealer would give you for it.  If you can't get more than the dealer will offer you, then you are better off trading in the car, because you'll benefit by the savings in sales tax.

 "Appraising" your car at the dealership

They put on a good show.  The "appraiser" will rub his fingers over every dent and dimple like he's having foreplay with your car.  They do this to panic you, setting you up for a low ball quote.  They'll say "All these scratches, I don't know how much we can give you.  We'll lose money on this trade-in, if we can sell it at all."   So why does he want the trade-in so bad?  Tell them it's normal wear for that age.  That's why you're not asking $20000 for it.  Tell them you are not trading in and watch them try to convince you to trade in a car "they'll lose money on".  Dealers go to auctions to sell acquired trade-ins and hunt for fresh used cars.  They use auctions as to figure out car values, based on market conditions.  One other weapon the dealer has is your maintenance history.  If you are trading in a GM at a GM dealership, they can get on the network and pull up your maintenance records.  Remember that brake job and transmission motor mount they suggested you get when you brought it in 2 months ago?  All those remarks are entered into the network. Any dealer can get that data and use it against you.

We'll Give You Top Dollar For Your new Car!

Beware of dealer TV ads claiming they'll pay you "Top Dollar" for your trade-in.  They use psychology to let your brain trick you into thinking you'll strike it rich.  Your definition of top dollar is different from theirs.  Your definition of top dollar is fair market value, but their definition is wholesale value.  You'll never get fair market it's the laws of physics.  You can't get blood from a stone, and you'll never make money on a trade-in selling it to a dealer.  They may offer more than market value, and you're celebrating in the end zone so you failed to see they charged you full MSRP for the car, or added wasted extras.  Those who ignore the rules of this game are in for a shock when the dealer makes their offer.  You'll complain it's too low, and that their ad said "Top Dollar", but they'll say "This is top dollar.  This is as high as we can go.  We have to resell it too, you know.  I don't think we'll even make a cent on it". Do you really think these dealers are spending thousands of dollars on TV ads for a loss?  They advertise because buying and reselling decent used cars is profitable.  Their ads reel you in and they offer you "Top Dollar".

Driving Records

Driving Records are state driver's license reports containing details about a driver's history including accidents and violations.  Each state maintains records of their registered drivers' activities occurring only in that state.

Driving records can be obtained by insurance companies to determine your rates as well as by companies during their employment screening procedures when hiring.  Some employers may even require that you submit your driving record along with your employment application.  A single typo on your driving record can cost you hundreds of dollars in insurance rates.  It can even cost you a job.

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