How to Sell a Car Yourself
If you have a vehicle you want to sell, now might be the perfect time. Never before in modern history have used cars been in such demand. In fact, used car inventory is so tight that many are selling for prices higher than the same model brand new!
If you wish to sell your car, you have a few options and a lot of free or low-cost tools at your disposal. We are not kidding when we say that it is very likely buyers will jump at the chance to buy your car. And not just private buyers. Dealers, both traditional and online, will gladly send you an instant cash offer or welcome you to come in for a set price. For the scope of this story, we will consider that trading in your car when buying a new car is another option and not consider it “selling your car.”
The Way to Sell Your Car If You Have A Loan
If you plan to sell your car and you have an outstanding loan on the vehicle, the first step is to speak with your lender and ask them how the process will work. One option, if you can swing the deal, is to pay off the loan now and have the lender release your title. That will enable you to sell the car and convey the title to the new owner easily.
If you can’t pay off the loan until you have been paid for the car, the process becomes a little trickier. Your lender will know what steps you need to take in order to make the process go smoothly. We would also suggest that you consider selling your car to a dealer. These folks do this all the time and are likely to know the steps required to make your sale happen legally and quickly.
You Own Your Car but the Title Is Missing? Here’s What To Do
A title is a legal document that your state uses to keep track of who is a legal owner of a vehicle. Typically, the state’s department of motor vehicles (DMV) or the registry of motor vehicles (RMV) will administer titles. Start with your state’s DMV or RMV if you own your car but have misplaced your title. They can help you obtain a copy.
When you find it, be sure that only you are listed on the title. If your ex-spouse is also listed you are going to need to get them to agree to the sale.
How To Sell a Car Owned By A Deceased Loved One
If your spouse or a family member has passed, our condolences. If you find yourself in the position of having to sell the car that you co-owned, or if the title was in the name of the deceased person, your DMV or RMV can help. Our state of Massachusetts has a long-standing reputation for making drivers’ lives difficult. However, when your author helped a family member whose spouse had passed away to transfer a title and then sell that vehicle during the height of COVID, the state’s RMV team was sympathetic, helpful, and efficient. The process was wrapped up in moments. There are a few forms to deal with, but don’t be intimidated. Dealers are also able to help, and AAA acts as an RMV in many areas.
The Way to Sell Your Car If You Own The Vehicle Outright and Have the Title
If you own the vehicle and you have the title, selling your car is not difficult. There are three main options;
- Sell your car to a conventional car dealer.
- Sell your car to an online car dealer.
- Sell your car to a private person directly.
- Donate your car to a charity, help mankind, and get a tax deduction.
Each of these options has some advantages. The first thing to establish is the price you will get for your car. Selling to a private party will most likely get you the highest possible price. However, you need to deal with some things that selling to a dealer allows you to avoid.
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Selling your car to a traditional dealer is the fastest way to sell your car. Call ahead, get an appointment, and drive over. Your car will be gone quicker than you can call an Uber to take you home. A traditional dealer will also be helpful if you have a loan. However the transaction goes down, the dealer can assist you with all the paperwork you will need to do.
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Online dealers are also great. They can help you verbally on the phone as well as on your connected device. Some online dealers will even send a truck to take your car from your driveway.
Instant Cash Offers
One way to sell your vehicle is by using an instant cash offer (ICO). Car dealers are short of inventory and are using instant cash offers as advertisements to find sellers who can provide them with a used car to sell. You may get an instant cash offer from the dealer who sold you your car, a local dealer if you get service there, or if you use any of the online pricing tools.
ICOs are real, but you will need to bring your vehicle in for an inspection. At which time they will make a long list of reasons why your car is worth less than the original offer. You can always walk away if you feel the price is not acceptable to you.
Read more about Selling Your Car with an ICO here.
The Documents You May Need
When you sell your car there are two main documents you need to use to legally complete the transaction. The first is the title we keep harping about. The second is a bill of sale. In many states, the bill of sale is conveniently on the back of the title.
These documents will help you with the sale of the vehicle, but there is a bit more paperwork to handle. Here’s a quick punch list of the tasks ahead:
- RMV or DMV forms to cancel or transfer your registration and plates.
- Your insurance cancellation or transfer.
- Loan payoff, if applicable.
- Warranty cancellation or transfer, if applicable.
Getting Your Car Ready to Sell
Clean Your Car
Regardless of how you opt to sell your car, you will need to prepare it for sale. In every scenario, plan to have your car washed, cleaned up inside, and empty of all your belongings. Make sure you snag your title and any documents with personal information from the glove box.
Tires
If your tires will pass your state’s safety inspection, don’t replace them. However, if the tires have visible damage or the tread depth is flat across the tread bars, you should change them. If the vehicle is a beater selling for bottom dollar, just change the ones that need it if the vehicle can drive on tires with different tread depths. Many all-wheel drive vehicles require that the tires be changed together to prevent damage to differentials. Your manual will give you the advice you need on that.
When you change tires ahead of selling, don’t buy the cheapest ones you can possibly find. We suggest sticking with either the same brand and model the carmaker used, a top seller listed by Tire Rack or SimpleTire, or another model suitable to the car made by a brand you have heard of.
State Inspection
If your state requires an inspection to register a car, we suggest that you at least ensure the car can pass. Actually having it inspected is another option, if the fee is reasonable. This allows you to confidently tell the buyer it will pass. Some states may have a requirement that a seller supplies the vehicle in a condition that is passable. Your DMV may have some instructions for you regarding this.
Maintenance Records
When preparing to sell your vehicle, be sure to gather up all of your maintenance and repair records. Create a folder for the buyer. Be sure to remove any personal info such as the original purchase sheet and your title.
Choosing the Right Price
Determining the right price for your vehicle isn’t difficult. Start with a couple of sites that offer online estimates. Edmunds and KBB are the two classics. You will be asked to fill in your vehicle information such as year, make model, trim level, options, mileage, and condition. Be honest on the condition part and you will get the best result.
These sites provide you with a range of prices depending on your preferred selling method. Selling your car to a private party will usually bring you the highest return, so you will see that option at the top of the price range. A trade-in or instant cash offer from a dealer will likely bring you a lower price, so be aware of that.
Safety Tips for Selling a Car Yourself
If you are selling to a private party, you need to think ahead to keep yourself safe. Do not go to a location at the buyer’s suggestion. Pick a spot you know to be safe. Perhaps your local public safety building parking lot or police station lot?
When you arrange to meet a buyer, advise them to bring their license to drive. When you meet buyers, ask for their driver’s license and snap a picture of it along with the plate from the vehicle in which they arrived. Email the images to a friend who is watching your back for the transaction to ensure your safety. You may also want to share your location from your phone with someone you trust.
Test drives are almost a must if you sell private party. Actually look at the license and check that it is not expired. If you are driving along with the buyer, buckle up and insist that they do as well to protect yourself from liability. You pick the route.
If you are not comfortable dealing with strangers, perhaps a private party sale is not for you? A local car dealer or an online car dealer may be more up your alley. You will probably get less for your car, but it will be easier and safer, for certain.
Negotiating the Price
Negotiating is always intimidating, but the good news is that in this climate of low inventory and high demand, you are in a great position. Decide what your firm price is and try to get it. If you find yourself in a situation where you are being pressed to lower your price, walk away from the deal and politely let the buyer know you will get back to them if you can’t get the price you are seeking from another party.
Getting Payment for Your Car
Once you have finalized a deal, you need to be sure you can get paid. Above we suggested that you ask any buyer to provide a license and that you both photograph it and also read it closely to be sure it is not expired and looks legitimate. That image will be handy if anything goes wrong with your payment. The simplest way to ensure you are getting what you are promised is to ask for cash or a bank check and meet the buyer at the bank. Deposit the money before signing the title.
Newer methods of being paid include PayPay, Venmo and Zelle. Just be certain you know the terms and conditions for any electronic payment you accept. Once you sign the title, you no longer own the car.
If you sell to a brand-name franchised car dealer like “Smith Ford” or a brand-name car retailer like Cars.com, you can accept a check for payment. Deposit it quickly and you should be fine.
The Donation Option
Donating your car and obtaining a tax deduction for its value is an option. Donation is easy. Car Talk's Car Donation Program can help you if you wish to support your local NPR station, and we pick up the car for free. Most people donate running cars with relatively low value, but charities will accept almost any car. Ask your tax preparer if a donation will work for you and if your state also offers any incentives.
Read more on How to Sell Your Car here.
