Seller's Tips

Valuation - Determining your cars market value might be the most nebulous task in the private party sales process. The term "market value" is used because auto values, like other commodities, are based on supply and demand. The initial step in placing a realistic, market value on your automotive gem is to establish a beginning value through resources like Kelly Blue Book and Edmunds and/or other publications utilized by auto dealers in your area. Values supplied by these publications are typically determined by a geographic database and as long as your input is honest and accurate you can expect a fairly realistic valuation. Next is to look at your competition. Check to see how many like vehicles are for sale in your market area and the price ranges listed at local dealers. Lastly, factor in the vehicles cosmetic and mechanical condition then use your best judgment in setting an asking price. Don't be afraid to ask for a little more if your "pristine, pampered beauty" if it’s worth it, after all this is why you're selling it private party in the first place, right?

Preparation - Are looking to accomplish a faster, more profitable sale? Here’s the simple solution: Be sure your vehicle makes good first impression! If you're selected "good" or "excellent" condition in the valuation process noted above, then it's highly recommended you spend the time and money necessary to achieve a noticeable level of "shine" for your slightly neglected ride. Be certain your vehicles interior is clean and maybe consider giving the engine compartment a steam bath too. Once again, presenting a good first impression with your car is a key element to a more profitable, expeditious sale.

If your vehicle has a few issues and might be considered "mechanically challenged" a prudent suggestion would be fully disclose its’ shortcomings and, most importantly, write "Sold As-Is" on the bill of sale. For those of you who are fortunate enough not to have such challenging automotive issues, it's suggested to have a written safety and mechanical inspection performed on your vehicle. People who buy a used car from a dealer or private party want full disclosure of any accident damage or related issues. Prudently performing a presale inspection will increase the buyers' confidence and improve your profitability. This can be done a local dealership or at an independent, ASE certified service center. The more confidence you can provide a potential buyer, the better your opportunity for a smooth, successful sale.

Negotiation- This part of the sales process should be the easiest considering your car looks like it just came from an "Automotive Day Spa", is as mechanically sound as a fine timepiece and is priced perfectly at market value, right? Realistically, no matter how well you follow the above steps, expect to be grilled on the price. However, you should consider this to be a positive step in the process because at this stage you've probably found a serious buyer and are closer to finalizing a sale. To maximize your profitability take the time to review with the potential buyer how you valued your car (market conditions etc), bring along recent service documents and the written safety check and be sure to review the remaining factory warranty or transferable extended service agreements when applicable. All these important components, combined with a positive presentation, should expedite the sales process and ensure you a higher value.

Be sure to practice good judgment when the time comes to meeting with a potential buyer. Preferably plan a daytime meeting at a public place close to home, but definitely not at your home. Have someone accompany you if possible or at least inform a trusted friend or neighbor of the time and place of your appointment. Don't let the excitement of selling your car interfere with your safety and please use good common sense.

Separation - Your diligent efforts are about to pay off. Optimistically you haven't endured too many difficulties in this exciting process and the time has finally arrived to part ways with your car. For some people this might be a sentimental moment and of course it's perfectly OK to have tissues at hand to absorb a falling tear drop or two. As much as cash is considered an accepted commodity, a cashiers' check or money order issued by a reputable lending institution may be a more prudent instrument for the transaction. Carrying a large amount of cash in today's' uncertain environment may not be a healthy move!

Bear in mind any outstanding loan or lien on your vehicle will have to be paid off before you pocket any profit. If this is the case, contact a representative from your lending institution well in advance of the sale to discuss their requirements for paying off the loan. They will usually provide you with a time bound payoff amount and details on where to send the funds once the car is sold. In concurrence, the buyer may also need to originate a new loan to purchase your car. Exchanging information and connecting the two lending institutions together should ensure a smooth transaction.

The final step is to provide the buyer with a bill of sale, have new buyer register the vehicle in their name and pay the applicable sales tax. If they are financing the car, the lender will execute this requirement, if not, the registration can be done at the DMV or, even better, at an Automobile Club office. Finally, be sure to notify your insurance company to inform them you no longer own the vehicle.

Buyer's Tips

Needless to say, the most accessible, time saving and convenient resource available to research a used vehicle is the Internet. Price valuations can be performed at sites like KBB.com or Edmunds.com. In addition, it's worth your time and the nominal cost to have a mechanical inspection performed by a qualified technician. By law, and at your own expense, you are entitled to have this service performed prior to completing the transaction. The DMV also offers a VIN check service which may prove helpful: http://www.dmv.org/vehicle-history.php Other important items to consider:

• Ask for service records and the owner's manuals. This is obviously a good sign the owner has pride in ownership
• Inquire about the remaining factory warranty, maintenance coverage and if an extended service agreement can be transferred to you for a nominal fee
• Whether you're paying cash or acquiring a loan, try and have your moneys together. This will expedite the process and, more importantly give you added leverage when negotiating your "best deal".
• Be sure to get a bill of sale with all the details of the transaction and future promises in writing. You may want finalize the transaction at your lenders office and/or at an Auto Club location.
• Contact your insurance company and add this fine piece of machinery to your policy.