Sell It Yourself Car Seller's Guide

Learn How to Place an Effective Car Ad Online

• Pricing Your Car
• Prepping Your Car for Sale
• Placing an Effective Ad
• Finding a Buyer
• Selling Your Car If You Still Owe Money On It

The key to selling your car is pricing it wisely. A common problem among private-party sellers is overpricing. Avoid that mistake by doing some initial research:

• Determine your car's value with our Kelley Blue Book pricing tool. The "Private Party Value" will be the most accurate for pricing your vehicle.
• Provide an honest evaluation of your car's condition to get a true idea of its worth. Remember: A potential buyer will tend to be more critical of the car's condition.
• Search used-car listings for the pricing of similar models in your area.
• Research dealer pricing but don't expect to get the same amount in your sale. Dealer sales provide some benefits that private-party sales do not, such as return/exchange policies, limited warranties, etc.
• Factor in likely repair work. If your car is worth $10,000 but needs a new clutch, then don't expect to receive full value. Reduce the price in accordance with necessary repairs.
• When creating your ad, you'll have the option to add "Or best offer" language to your asking price. Including OBO could result in more leads, but it may also result in lower initial offers.
• Be realistic: Is your used car still a popular and viable model, or are you driving a relic of an earlier age? Price it accordingly.
• Cars.com's Vehicle Donation Program is a great alternative to selling. It enables you to donate a car to the charity of your choice and get a tax deduction

When selling your car privately, take a cue from dealers: Make the car as attractive as possible. Use these guidelines:

• Start by cleaning your car thoroughly. Wash and wax the exterior, remove all interior and trunk clutter, vacuum and wipe down all interior surfaces, and clean all the windows. Alternately, you can have it detailed by a professional to save time. This service ranges from $20 - $50 for a simple clean and wash to $100 - $200 for full detailing (shampoo, wax, etc.).
• Replace burnt out lights or fuses and top off all fluid levels.
• Get a vehicle history report that you can present to the buyer; this provides credibility and builds trust. Reports from Carfax are available on cars.com.
• If you have detailed inspection records, prepare itemized copies (with service receipts) for the prospective buyer. This suggests you're selling a reliable vehicle.
• Many buyers will want to have your car inspected by a mechanic. You may decide it's better to have your own mechanic inspect the car prior to placing the ad, thus avoiding potential surprises closer to sale.
• Alternately, have your car inspected by a third-party service. These companies inspect your car at your home or office and independently verify its description and general status. These services cost about $100. You can find service providers online or in your local phone book.
• Make a copy of your vehicle title in preparation for the sale. If you don't have the title, call your lending institution and request they send it to you with a lien release. If you paid off the loan years ago and the lending institution no longer exists, the Federal Deposit Insurance Corporation (at 888-206-4662) can help you obtain your title.

You've prepared your car and have an asking price — now you need to sell it. An effectively merchandised ad will draw buyers' attention and can help sell the car quickly.

• Photos, photos, photos. Use as many photos of your clean, well-maintained car as possible. Include a variety of shots, such as exterior front, rear and side angles; interior front/rear seats; the dashboard; trunk/cargo space; wheels and tires; engine block; and other special features (e.g., If the stick shift is a key selling point in your sports car, show pictures of it.) If you were buying a car, wouldn't you want to see as many pictures as possible?
• Mention amenities that you enjoyed most: a V-8 engine, all-wheel drive, a sunroof or moonroof, an electronic stability system, other safety features, creature comforts, etc. What features were attractive to you when you purchased the car?
• Are you the car's only owner/driver? Has it been stored indoors during all seasons? These items may also be worth mentioning.
• Avoid generalities such as "Loaded!" or "Like new!" Instead, be specific: loaded with what? And how is it "like new"? Does it have relatively low mileage for its age? Is the interior immaculate?

You can include several forms of contact information for potential buyers when you place your ad. Provide both daytime and evening phone numbers and an email address. If you've followed the steps listed above, you should begin receiving inquiries quickly.

• If you receive a voice mail or email message, return the message promptly. The buyer was interested enough to contact you, but the caller may cool off — or find a better car — if you don't reply within 24 to 48 hours.
• During the initial exchange, get the prospective buyer's full name, email address and phone number; this will help you verify their identity after the call.
• Treat your initial contact as a marketing opportunity. Resell the car over the phone or via email. Emphasize its key selling points without exaggerating.
• Be honest and direct if the buyer asks tough questions about your car. This will ultimately save you time by narrowing down leads to the most interested buyers. In addition, honesty builds credibility — nobody expects a used car to be perfect, but they do want to know about problem areas.
• Encourage the potential buyer to see and test-drive the vehicle. Arrange a meeting point or test drive for the near future and make yourself available at the buyer's convenience, if possible. For more information on test drives, click here.
• After the discussion, use directory listings or a follow-up email to confirm the buyer's identity. Be wary if the information provided doesn't check out.

It's possible to sell a car even if you still have an outstanding loan balance on the vehicle. This merely adds a step to the sales transaction: closing the loan with your lender.

• Call your lending institution to determine the best way to close out the loan. At the same time, ask about obtaining a lien release, which states that there are no outstanding loan obligations on your car.
• If you owe more on your loan than you can readily pay prior to a sale, it's possible to close the loan and transfer ownership at the same time. For instance, Escrow.com can facilitate payment to the lien holder during a normal escrow transaction. For more information on using escrow services, click here.
• If neither of these options is satisfactory, conduct the sale at the lien-holding institution. The seller can pay off the loan balance with the sale proceeds and immediately sign over the title to the new owner. Call the lending institution beforehand to facilitate this transaction. If the lien holder is out of state, obtain a temporary operating permit from your state's Department of Motor Vehicles. Once the loan is paid off, you can then send the signed title to the new owner. While this option may involve more faith by the buyer, remind that person that it's also in your best interest to transfer the title as soon as possible to eliminate personal liability.
• Leased cars represent a different situation. If you want to transfer your current lease to a new owner, we recommend using a lease-transfer service.