10 Tips For Selling Your Car Online
Across the United States, sales of used cars surpass those of new cars. According to the National Transportation Statistics report, 39.3 million used cars and 14 million new cars were sold in 2020. This marks a slight increase in used car sales from 2015, which saw 37.2 million units sold. Here are 10 essential tips for selling your car online without any hassle.
Instant Cash Offers: Smart choice for car sellers
User car owners have three options when selling their cars. They can sell it back to the dealership, sell it online privately, or accept an ICO or Instant Cash Offer.
Investing in maintenance and reconditioning can help you sell your car for a higher price through a private online sale, as no middleman is involved. However, this higher price isn’t guaranteed. If your car is older, an unpopular model, or in poor condition, buyers may not offer a price that compensates for the cost of preparing the car for sale. In these situations, accepting a lower price from an Instant Cash Offer (ICO) could be a more practical choice.
If you decide to accept an Instant Cash Offer, be sure to shop around. Contact multiple local ICO buying firms to obtain competing offers. You’ll need to provide your car’s license plate number, vehicle identification number (VIN), and proof of ownership to receive an offer.
Buyers Will Expect to See Your Car’s History in Writing
Gone are the days of quick sales sealed with a friendly handshake. Nowadays, buyers conduct thorough research on used cars before discussing price. Naturally, they will want to know your car’s history. Be prepared to provide:
- Original Sales Paperwork: Buyers will refer to this to verify the car’s make, year, model, trim, and features (such as keyless entry, head-up display, navigation system, etc.).
- Service Records: These documents help buyers evaluate how well you maintained the car and whether you invested in routine maintenance at key mileage milestones (like replacing the air filter at 15,000 miles or the timing belt at 60,000 to 100,000 miles).
- Vehicle History Report: This report allows buyers to check if the car has been involved in any accidents.
You’ll also need to provide proof of ownership through the vehicle’s title and/or registration records.
Cosmetic Reconditioning Can Help You Achieve a Higher Sale Price
Cosmetic reconditioning, such as repairing scratches, chips, small dents, stains, holes, and burns, enhances the appearance of your car and reflects its well-maintained condition. Since buyers often assess a vehicle’s value based on its overall care, investing in cosmetic reconditioning can significantly improve your chances of securing a higher final sales price.
Here are some tips you can try:
- Get dirt and grime off tire rims
- Shampoo seats and carpets using products compatible with the car’s upholstery material.
- For hard to reach areas such as AC vents and door pockets, use a cleaning putty.
- Clean the windows and mirrors.
- Take off bumper stickers
- Aerate the car and try a light air freshener
- Consider getting the car professionally detailed.
Price is a Key Marketing Strategy
Have you ever come across an online listing with a price so low it raised red flags? The price you set in your car sales ad significantly affects how potential buyers perceive your vehicle’s value. If you choose a price that’s too low, buyers might suspect serious mechanical issues or that the car was previously a write-off. Conversely, pricing your car too high could make buyers view you as an unserious seller.
Research similar listings thoroughly and establish a desired sales range to find the right balance for your car’s price. Your walk-away price should be at the lower end of this range, while your dream price sits at the top. List your car’s price in the middle, at a level that buyers will find reasonable for your make and model. To attract attention, consider using pricing strategies like listing your car at $X9,999.
You Can Sell Without Paying for Advertisements
While some car-selling websites may suggest that paid advertising is essential to attract attention to your listing, this is rarely necessary. You can promote your car by posting on your local community’s Facebook page, asking friends and family to share it, and optimizing your listing for search engines.
To enhance the searchability of your ad, clearly include your car’s make, model, year, and sales price, ideally in the title. Additionally, consider using keywords such as heated seats, navigation system, or large cup holders, since potential buyers often look for listings with specific features they desire.
Researching Comparable Sales Will Benefit You
The used car market is evolving rapidly. According to McKinsey, purchase intentions for cars are “almost back to pre-COVID levels,” although they dropped significantly for several months. Consumer preferences have shifted as well, with some people driving less and others opting for electric vehicles (EVs) over traditional diesel models.
To secure the best price for your car, it’s essential to thoroughly research comparable listings. In this context, “comparable” refers to vehicles from sellers aiming to sell online that local buyers would view as competitors—such as two family-sized SUVs or two small city cars.
If you have the time, spend several weeks monitoring local listings. Pay attention to listing and sale prices, the average time it takes to sell used cars, how other sellers market their vehicles, and the payment and negotiation processes they employ. Use this information to create a sales listing that stands out in your local market’s current conditions.
Be Prepared for a Test Drive Request
With over 4.95 billion people worldwide (about 62.5% of the total population) having internet access, online shopping has surged—cars included. However, even though buyers search for cars online, they still prefer to assess them in person. Test drives allow buyers to identify any faults, evaluate the car’s comfort, and envision life as the new owner. Be ready for serious buyers to request a test drive.
Ensure you do the following:
- Clean the interior of your car
- Plan a short route for the test drive
- Verify the driver’s license
- Double-check your insurance coverage
- Provide the driver with an overview of the car’s main controls
It’s better if you can accompany the buyer during their test drive. But if you prefer not to join, you can ask to hold onto a valuable item, such as their license or current car keys, for security. Remember, you don’t have to agree to every test drive request, and it’s perfectly acceptable to verify the buyer’s intentions beforehand.
Car Sales Listings Attract Scammers
Not all buyers who will reach out to you have honest goals, so be vigilant about common car sale scams. One prevalent scam involves a potential buyer claiming they’re not local and wanting to purchase your car without inspecting it. They may send you money for the car plus an extra amount (often several hundred to thousands of dollars) and then ask you to refund the difference. Since the transaction isn’t legitimate, your bank will later withdraw the car payment from your account, leaving you at a loss for the refunded amount.
Another common tactic involves purchasing the car using a false identity and paying with a counterfeit check. To avoid falling victim to this, make sure to verify the buyer’s identity and use a secure payment method.
Not All Payment Methods Offer the Same Level of Security
Once the sale is finalized and the buyer drives off, recovering your vehicle if something goes wrong can be extremely challenging. The buyer might leave the state, disguise the car (a practice known as “re-birthing”), or fail to make payment installments.
Always require the buyer to pay in full using a secure payment method before handing over the keys. Secure payment options include:
- A reputable third-party platform like PayPal, Payoneer, or Venmo.
- Direct bank transfers
- Licensed escrow services
- A cashier’s check, cash, or a money order processed at the bank with both you and the buyer present.
Avoid payment methods that make it difficult to dispute or reverse the transaction. This includes cryptocurrency payments and transactions through unlicensed escrow services.
Always Utilize a Safe Exchange Zone
A safe exchange zone is a designated area established by local police for buyers and sellers to safely conduct transactions. These zones are typically monitored by 24/7 video surveillance and are located near law enforcement for added security in case of any issues.
If you cannot locate a local safe exchange zone, choose a public location with ample lighting and foot traffic. Options include a mall parking lot or a busy public park. Avoid conducting the transaction at home, on secluded streets, or in areas with poor phone service. For added safety, bring a companion, carry your phone, and inform others of your location and expected return time.
Bottomline
The used car market is projected to grow at a Compound Annual Growth Rate (CAGR) of 10%, reaching $460 billion by 2027. As more buyers opt to bypass used car salespeople and their questionable tactics, selling cars online is becoming increasingly popular.
If you’re considering selling your car online, keep these key points in mind:
- Research, cosmetic reconditioning, and strategic pricing can help you secure a better price.
- Buyers typically expect test drives and proper vehicle documentation.
- Protect yourself by using secure payment methods and meeting in a safe exchange zone.
- Always exercise caution and thoroughly vet potential buyers.
