It is never easy selling your private car. After all, it is an asset that has presented you many fond memories. Apart from the emotional connect you have with your car, the actual process of selling the vehicle can also be quite daunting. You need to be aware of the market situation and pick a suitable price. You will be required to clean it and get it inspected. Another hassle can be the process of fishing out all the relevant paperwork from the dusty cabinet at home.
You also need to make up your mind on how you will be selling it - Would you sell it to a dealer? Or is it wise to put up a classified ad that would attract an independent buyer?
You need to think about the monetary transaction as well - Should you take a certified check as payment or it is safer to opt for a cash transaction?
Although the process seems to be complicated, it will not be if you do your due amount of research and organise everything carefully. And the result will certainly be most profitable for you!
Use this step-by-step guide to help you in the journey of selling your car:
Step 1 - Study The Market Conditions
First and foremost, you will need to have a clear idea of the actual worth of your car. You can check out the prices of similar cars at ad portals. The market value of your car is also a significant part of your motor insurance policy. It is referred to as the Insured Declared Value (IDV) in car insurance. This is arrived at by deducting the depreciation of the car from its original price.
You should ideally have a clear idea of the IDV of your vehicle. It is often found that the year-end period is the most unfavourable time to sell your car. If possible, put your car up for sale during the summer.
Step 2 - Sort Out The Paperwork
If you are in possession of a car, you will have the paperwork that you received at the time of purchase of the vehicle. This is the proof of ownership and you should keep this documentation with you at the time of sale. If you are unable to locate it, request for a copy of the same from your Regional Transport Office (RTO).
If you have financed the car and still owe the bank some money on it, you will also need to find out the exact amount for the payoff. The buyer will then write a check to the bank for the same, and pay you the remaining balance.
On the subject of paperwork, it is important to have the required documentation to prove that your liability ends when you sell the car to the new owner.
Step 3 - Transfer The No Claim Bonus
If you have been a diligent driver, you would have accumulated a No Claim Bonus (NCB) on your car insurance policy. This is the reward you receive from the insurance company for not raising any claims.
If you are selling your car, your insurance provider will have to be notified of the same. You can request for an NCB retention letter that will preserve the bonus for up to 2 years. Within this time, the NCB should be attached to the insurance policy of another car in your ownership. Unless specifically requested for, the existing auto insurance policy of your car will not be transferred to the name of the new owner. And even if there is a transfer of insurance, the NCB will not be transferred.
Step 4 - Get The Car Inspected
Before you put up the car for sale, take it to an authorised service centre and get it inspected by a professional mechanic. This way, you will be aware of all the problems that need to be fixed. The inspection will help you command a higher price for the vehicle as prospective buyers will know that it has received a clean record of health.
Also Read About: Why Do You Need A Car Inspection
Step 5 - Clean The Car
You can do some cosmetic changes to the car such as replacing the floor mats and sprucing up the interiors. If needed, you can get this done at an authorised service station. Giving the interiors a fresh clean scent will also make it more appealing to the buyer.
Step 6 - Decide On The Sales Mode
These days, you can sell your car through several avenues. You should first decide as to how you will be making the sale, i.e., whether it is through a dealer, via a third-party service, or to an independent buyer. You should know that selling the vehicle through a dealer fetches you less money than selling it through the classifieds. However, the effort required is also lesser. Another point to note is that pricing the car lower than the IDV will help in selling it faster. So, sort out your priorities before making a decision.
Step 7 - Create A Convincing Advertisement
This step is relevant only if you are selling the car independently through ads. You should take the time and effort to write a captivating description of your car. You should remember that there will be several other ads in the forum you will be posting it in. So, including an eye-catching headline, a detailed description, and colourful photographs will help you get noticed. You may also focus on the main selling point of the vehicle that probably is your favourite feature as well.
If done correctly, selling your car can be a hassle-free process. You will manage to convert your used car into cash and the buyer will receive a reliable mode of transportation - a win-win situation for both parties involved. So focus on the tips above and you are likely to have a smooth experience.
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