How to sell your car privately

If potential buyers don't know a car is for sale there is no way you are going to get any offers for the car. The first thing to do when selling a car is to advertise and spread the word it is for sale.

Historically, cars were advertised in the back of a local newspaper under the classifieds section. In addition to this, a card containing brief details was often put up in the local shop or post office. These methods are still used in advertising cars however times have changed and there are many other ways in which to advertise your car.

The internet is a great tool and there are many places you can advertise your car, some of which you have to pay for and some of which are free. If you have an enthusiasts car, such as an MR2 or Celica, you may be able to find an owners club on which to advertise your car. This approach is very niche but it is the cheapest way to sell your car. It should be noted that any potential buyer from an enthusiasts club will know how much the car is worth and what sort of state the car should be in. You will not be able to pull the wool over the eyes of an enthusiast so don't bother trying.

If there are no owners' clubs on which to advertise your car I would give ebay a try. Ebay attracts a large audience and it offers a great way of reaching a large sea of potential buyers. The problem with Ebay is the selling fees are now high and unavoidable.

Once your advertisement is placed it is time to sit back and wait for potential buyers to come to you to make enquiries. In this day and age many people make initial enquiries via email. Using email is fast and convenient however it is not ideal in these circumstances. When using email it is easy to misinterpret information and the tone in which it is being communicated. The best form of communication when selling a car is by telephone, however it is best for the initial contact to be via email asking for all enquiries to be by telephone.

The initial telephone call can determine whether a potential buyer comes to view your car or not. Before speaking to any potential buyers you should script out exactly what you are going to say. Think about the sort of questions a potential buyer is likely to ask and note them down. Take a step back and think about these questions and how to respond to them. You need to sort out a sales pitch and stick to it. The sales pitch needs to focus on the best parts of the car but it also needs to be honest and contain no white lies. You need to practice the sales pitch over and over prior to speaking to any potential buyers.

Most potential buyers will want to ensure you are actually the owner of the vehicle and have the relevant paperwork to prove this, therefore you need to make sure you have the original copy of the vehicle registration document. A photocopy is not acceptable and all potential buyers will walk away if you do not have the original copy of the registration document.

You should also have the current MOT certificate and service book, which is fully stamped up to date, and any other paper work relating to the car available for inspection. Other paperwork includes things like service receipts, invoices for any spares, old MOT certificates etc. etc. The more of the car's history you have the better. Old MOT certificates help to verify the mileage and service invoices and parts invoices demonstrate that you have looked after the car and spent money to keep it in a road worthy condition.

If you were looking at buying a car you would want to take it for a test drive right? No one in their right mind would ever buy a car without taking it for a quick road trip to ensure everything sounds as it should, works as it should and feels like it should.

Arguably, the test drive is the most nerve wrecking part of selling a car privately however it is an essential part. Before letting the potential buyer take the car out for a test drive you need to make sure there is adequate insurance in place. You should ensure the test driver has an insurance policy that will cover the driver on any vehicle, with the owners express permission. If the potential buyer cannot provide a valid insurance certificate close the negotiations and look for another buyer. If the potential buyer has valid insurance in place the next step is the test drive.

You should never let any potential buyer go for a drive alone. Whilst most people are honest there are some unscrupulous people out there who may drive the car away never to be seen again if they get the chance to go for a lone test drive. Before going for the test drive you should write up a note stating the car is on test drive between specific times and name the person who will be driving. You need to sign this note and get the potential buyer to sign the note as well. This is your safeguard in case the potential buyer speeds and gets caught on camera during the test drive. In these circumstances this note can save you from a fine and points on your licence. If the potential buyer refuses to sign the note end the negotiations and find an alternative buyer. Once the note is signed the test drive can commence.

Once the When a potential buyer takes the car for a test drive you need to go with them, so jump in the back seat and let them take control. A test drive allows the potential buyer to ask questions and do a bit more research on the car. When you answer these questions be honest and never be tempted to lie.

After the test drive the negotiations will start. No car buyer will immediately offer the asking price so be prepared for a ridiculously low price to get the bargaining started. Remember, this is a game of cat and mouse and you need to hold your nerve. You need to have an absolute minimum amount of money you will take for the car and stick to it.

If the potential buyer is not willing to reach your minimum amount then politely say no. Never give the potential buyer the absolute minimum amount and simply say "I was expecting more than that" when the offers are low. If the potential buyer turns the question around and asks what you will take for it there are two things you can do.

You can say a high amount and see if the potential buyer will pay it. Most of the time a buyer will refuse but there are some cases when the potential buyer will agree to the amount, so you will be quids in if this happens. The alternative is to turn the question around and ask the potential buyer to offer what they think the car is worth.

Hopefully, the first potential buyer will make an offer that is acceptable to you however if a deal cannot be reached just say no. If the negotiations break down in this manner you should let the potential buyer know that if they change their mind you will be open for further negotiations. Some potential buyers will get home and think about the car and wish they had increased their offer to secure the car. If you give the potential buyer the opportunity to re open the negotiations you may well find you will get a phone call offering you what you want for the car.

When you do agree a price for your car you need to close the sale and issue the buyer with a receipt. On the bottom of the receipt you should always include the phrase "sold as seen". This is an important part of the receipt since it demonstrates you gave the buyer the opportunity the chance to inspect the vehicle and make their own mind up about the condition and road worthiness of it. You accept no responsibility for what may or may not happen to the car once it has been sold and cannot offer any type of warranty and the "sold as seen" statement confirms this. You must produce two identical receipts and sign both copies. Similarly, the buyer should sign both copies of the receipt. Once copy is kept by you and the buyer keeps the other copy.

Never let the buyer take the vehicle without paying for it in full. If the buyer doesn't have the cash at the time take a deposit to hold the car and then keep it at your home until the buyer gets the rest of the money. Never hand the car over until all funds have cleared and are sitting in your bank account. If the buyer pays by cheque wait for this to clear until you hand over the keys. If the buyer pays by cash or bankers draft you will have few problems and can hand over the keys immediately.

Selling a car is not difficult but it does take preparation, time, effort and negotiations to draw the deal to a close. Some people simply can't be bothered with the prospect of selling their car privately and are more than happy to take a lower price by trading their car in and enjoy the easy way out.

However, if you want to maximise the amount you get for your car selling it privately is the best way. Whilst it can be a daunting prospect do a bit of planning and follow the steps above and you will soon realise that is isn't that hard and can be quite good fun.