No matter what condition your car is in, you still want the best price when it comes time to sell. Stuart Ridley explains how to get what your car  is worth.

Pre-sale preparation

You want to present your car to potential buyers in the best possible condition. If you’re like most people, it’s probably been through a bit of wear and tear. Here’s how to make the most of the situation:

Take it to a mechanic

Ask your mechanic to do a tune-up and fix the following:

• Cracks in the windshield;
• Broken fuses and lights;
• Damaged upholstery;
• Broken stereo;
• Bent panels;
• Loose or broken trim; and
• Top up coolant and engine oil.

It’s also a good idea to fix the aircon if it’s not working. However, some other things aren’t worth paying for now as they’ll be noticeable anyway, and often won’t add value, such as new tyres – unless the existing tyres are worn; minor dents or scratches; or new paint to cover up damage or rust.

Clean it thoroughly

Take all your personal belongings out of the car and clean it thoroughly inside and out (remember to observe current water restrictions). It’s a good idea to clean the engine, too. It’s worth paying a car detailer to do this job – it will cost more, but you’ll get a better result.

Get a certified Vehicle Inspection

NRMA offers inspection reports that detail how roadworthy your car is. You can then show it to any prospective buyers, plus it will pre-warn you of anything you don’t know about that may affect the price. You can book a mobile service to come out to your home or workplace, or the inspection can be done at one of NRMA’s Vehicle Inspection Centres in Sydney, the Central Coast, Newcastle, Wollongong, Canberra and several country locations. Cost is $239 for most vehicles, and Members get a $40 discount. Call 13 11 22 to book any day of the week, 7am–8pm or book online.

Set a price

Now that your car is ready for sale, it’s time to set a price. It’s best to set a realistic price if you want a sale. Scan the used car classifieds or the internet to get an idea about how much your car is worth. Keep an eye out for cars of the same age, make and model, and take note of the average prices quoted. Take into account kilometres travelled; popularity of model (a more popular car will attract more buyers, but there might also be more cars like yours available on the market); optional extras (can add value if they’re in good working order or may add to the car’s appearance); whether the car has aircon and power steering; and the condition of the car (a garaged car used to do a few local errands is clearly worth more than one kept on the street and used to commute to and from work every day).

The car’s service history can also be a plus if you’ve kept it up to date. If the vehicle has a full, dealer-documented service history, it is confirmation that all the required work has been done: you’re service history is ‘gold’. And don’t forget to take into account the rego expiry date, particularly if you want to sell a car in a lower price bracket as it represents a high portion of the value.

If it’s all too confusing, call NRMA Technical Advice on 1300 655 443 to get a valuation, based on Glass’s Guide, over the phone. If you want a written valuation, go online. Glass’s Information Services provides detailed valuation reports for $11. You can get a less specific valuation free at Redbook or pay $11 for its Valuation Certificate.

When you know how much you want for your car, set the price higher than the lowest amount you’ll accept. To make things easy, it’s a good idea to price it in the next half a unit to what you would like to get for it, ie. if you want $15,000, price it at $15,500. That way, you have room to negotiate and you also contribute to the buyer’s positive experience of driving a bargain.

The price should be a round amount, such as $2200, $5500, $10,000 or $120,000. In a private sale, no one falls for the retail illusion of a lower price if you shave off one or five dollars.

How to write an ad that sells

When writing the ad or answering questions about your car, be honest and concise – don’t give vague answers and don’t overstate pros or cons either. In the ad, include essential details such as:

• Car description:
  • make
  • model
  • year
  • series (including level)
  • body type
  • number of doors
  • transmission and engine capacity.
  • For example, Holden Commodore 2003 VY II Executive Sedan 4D, five-speed manual 3.8i;
• Rego expiry date;
• Remaining warranty (if applicable);
• Price: include ONO (or nearest offer) if the price is negotiable; and
• Your contact numbers: mobile, home and/or work.

If the car has been advertised at a fair price you should receive enquiries
soon after the ad appears.

Optional information that you may want to put in the ad to entice prospective buyers may include registration number; number of owners; whether it’s been garaged or not; colour of the car; service history/log books if you have these records; enhancements such as leather seats, aircon, power steering and stereo (include brand name if it’s well-regarded); and reason for selling (eg. owner going overseas).

Your ad might include abbreviations such as cond., EFI, DL or LD, man., mint and o/drive. Confused? Our Car selling terms, abbreviations and definitions will help you to create the most effective ad.

When potential buyers call

If the car has been advertised at a fair price you should receive enquiries soon after the ad appears. Try and leave time for appointments on that day and several days afterwards for keen buyers. Stick to your appointment times, but avoid a schedule that is too tight (eg. four appointments in one hour), as you don’t want potential buyers to be left waiting.

Record the name, home and mobile phone numbers of every potential buyer so you can contact them if they’re late for their appointment, or notify them that you have already found a buyer (and taken a deposit).

The inspection

Remove important documents from the car before you allow it to be inspected (manuals, log books, service record and registration). And show your car somewhere public and away from home so you don’t have to reveal your home address, especially if you live alone.

If possible, have a confident friend or relative with you during inspections. They can give you a reasonable second opinion in any negotiation, including any concerns you may have about a request for a test drive.

Test drives

While you’re not obligated to let a potential buyer test drive your car, you should agree to one if you’re sure they’re serious about buying. Before you do, check that your insurance policy covers any liability during the test drive. And don’t hand over the keys until they have agreed to:

• Allow you or a male friend/relative to accompany them. They should never be left alone in the car with the keys – several people have lost cars when the test driver asked them to get out and check a tyre, light, etc.
• Let you inspect their licence, so you can check the photo, and take note of the name, address and licence number – in case anything goes wrong.

Negotiating a deal

Don’t let yourself be pressured: always ask for time to consider an offer,
which may include consulting a friend for their opinion.

Remember to politely respond to any questions you can answer. There may be some you’re unsure about, which is why an NRMA Vehicle Inspection is reassuring for any potential buyer.

The sale

Once you have agreed on a sale, do not hand over the keys, car and paperwork until the car has been paid for in full. You need to allow time to count the cash (a few minutes) or wait for confirmation that a direct deposit or cheque has cleared (one to seven days).

Ask the buyer to leave a cash deposit to hold the car while you wait for full payment, and provide a receipt for the deposit only, which should include a note about the amount still owing and the date and time of pick-up. The buyer should also agree that if the full payment is cancelled, or they change their mind, you will keep the deposit to cover the costs of having to readvertise.

When you receive the deposit you should also record the deal in writing, which both of you will sign. This record should include:

• Date agreement was made;
• Short description of the car, ie. make, model, year and registration;
• Deposit amount and terms;
• Final agreed price;
• Final method of payment – bank cheques are usually preferable;
• Short description of any agreed repairs or inspections; and
• Proposed date the buyer will collect the car once the payment has cleared.

You can download and print a receipt. (PDF 1 page)
 

Post sale – your responsibilities

In NSW, you must provide the buyer with the current certificate of registration, signed in the correct place as ‘the seller’. You will need to tear off and send the ‘Notice of Disposal’ section to your local RTA office. You also need to supply the buyer with a roadworthiness inspection report less than a month old. The only exception is if the vehicle’s registration renewal is less than a month old. It also helps to provide a copy of the current green slip (CTP Insurance), the manual and any log books.

In the ACT, you must provide the buyer with the signed current registration certificate. 

Four Ways to Sell Your Old Car

Consider the amount of time and effort you’re prepared to spend getting a good price, and whether you plan to buy another car soon. This will help you to decide whether you should sell privately, do a trade-in with a dealer, or have someone else sell your car on consignment or via auction.

Private sale PROS Opportunity to get the best price (no commissions) More room for negotiation.   CONS Have to negotiate face-to-face Costs you time and money, ie. running an ad, preparing the car, answering questions, making and waiting for appointments (including some no shows). Privacy and safety issues, such as publishing your phone number and car details.		Consignment PROS A professional does the selling for you (usually a dealer or consignment centre) You can make a deal which still allows you to sell the car privately without incurring a penalty. CONS The seller gets a commission You may not get much more than the reserve/lowest price you set.
Trade-in PROS The fastest and easiest way to upgrade.   CONS Dealers offer modest trade-ins because they still need to make their commissions, both for selling you a new car and on-selling your old car. It pays to seek offers from several dealers before settling.		Auction PROS A quick and easy way to sell; potentially hundreds of buyers will see your car in one day. No negotiating. CONS The auction house gets a commission, plus you may be charged fees for entry and a title search, to see no money is owed on the car. You’re unlikely to get a great sale price because buyers want a bargain – that’s why they go to auctions.