Keys to a successful sales transaction
1. Before you devote a lot of time and energy to selling your car, take it to a mechanic for a thorough inspection. There are reasons why this is important. First, you may discover that your car needs alot of repairs, in which case, it’s not worth as much as you thought. Second, chances are good that a buyer is going to want to get the car inspected by a trusted mechanic. If you choose to get the car inspected first and disclose the findings, you’re being honest and upfront. That will instill confidence in the buyer, making it easier for him or her to hand over the cash.
Finally, if a buyer does opt to take the car to be inspected by his or her mechanic, their lists of recommended repairs may differ and that could be to your benefit during those perilous moments of the final negotiation. In other words, you won’t have to rely exclusively on a repair list developed by a mechanic who’s being paid by the buyer.
How much should a thorough inspection cost? About one hours labour. They should check such things as brakes, all the belts, hoses and fluids, inspect the suspension, and check important safety items like lights, horn and the front end. That’s just a partial list of what should be checked.
The level of inspection it should get. In our experience it should take at least an hour for a thorough inspection.
2. Collect as many of the maintenance reciepts and records for your car as you can.
3. If you can afford it, get your car valeted. If you’ve never had your car detailed, you’ll be amazed by how good it could look. You may even feel a pang of regret for letting it go! (You’ll also find clothes and shoes that have been lost for years.)
If you do get a professional valet done, we think it’s likely that you’ll more than make the 20-40 euros or so it should cost.
If you can’t afford a professional valeting, our advice is to buy a variety of cleaners, including rug, glass, vinyl and exterior cleaners. Toss in a few chamois clothes, grab the vacuum and go nuts!
A clean looking car is a thing of beauty. But, there’s a strategic reason why it’s important to get your jalopy spic and span. It suggests to a buyer that you’ve been taking good care of it or, at least, that you care enough to have it valeted. And that’s another step that will inspire confidence in the buyer, which gets you that much closer to an empty driveway and money burning a hole in your pocket.
Pricing Your Car
How do you figure out a fair price for your car? Good question!
We recommend the following steps:
1. Is everything working properly on your car, are there any necessary repairs. If so, you should deduct the cost of any necessary repairs to arrive at a reasonable sale price.
2. You need to honestly assess how you’ve been taking care of your car. Have you taken meticulous care of it? Then, your suggested sale price might be closer to the private value. But, if you’ve beaten it to smithereens on rough road trips, and never once had the oil changed, well, you might want to start thinking about expectations.
Most car owners accidentally misrepresent the condition of their car. For example, only 5% of used cars are actually in “excellent” condition. The moral of the story? Be very conservative when you rate the condition of your car.
3. what is the economic climate doing at the point of sale? this is important if you want a quick sale.
4. The final step to figure out is a fair selling price for your car, check out the real-world asking prices for private sales of cars similar to yours. Remember your not giving a waranty so your price has to reflect this against a dealers price. Once you’ve got a sense of comparable sale prices, pick the price you think is fair. Set it high enough so you can lower the price a bit, and still know that you’ll be happy with the end result.
Placing an Effective Ad
Advertise your car effectively
You’ve prepared your car and have an asking price, now you need to sell it. A well-written 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; boot/cargo space; wheels and tires; engine block; and other special features.
Mention amenities that you enjoyed most: a high-end stereo, a V-8 engine, all-wheel drive, a sunroof, 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? Has it been garaged? These items may be worth mentioning.
Avoid generalities such as “Loaded!” or “Like new!” Instead, be specific: loaded with what? How is it “like new”? Does it have relatively low mileage for its age? Is the interior immaculate?
The Test Drive
Now, you’ve listed your car for sale, the ad is out, and you’ve already spoken with a few potntial buyers.
Someone wants to come over and actually drive your car. What do you do?
We recommend going on the test drive with the prospective purchaser, for two reasons: first, if something untoward happens like, say, an engine meltdown or an accident, you will have been there to see it happen, and won’t simply be relying on their version of the incident. Second, with you in the car, it’s much harder for them to steal it and use it in a bank job. Third, the test drive is a great opportunity to talk about your car and point out its features.
If you have a high-performance car that begs to be driven aggressively, you should absolutely go on the test drive. With you riding shotgun, the buyer will be much less likely to drive like a maniac.
If you have an especially nice car, that you really would hate to see wrecked, you should also make sure to go on the test drive.
On the other hand, if you’re selling a jalopy, the consequences are less severe should the prospective buyer total your car or damage it. We’d be less concerned about going on the test drive in that case. (In fact, with the insurance settlement, it might work to your advantage!)
If you’re a woman, we’d humbly suggest you think carefully about whether you want to go out on a test drive with an unknown man. You may be putting yourself at personal risk.
This should cause you to reconsider whether you want to go on a test drive with any unknown guy. If you have any doubts, arrange to have a friend there with you, for the test drive portion of the transaction.
Finally, before you head out on a test drive, we’d suggest you ask to see the prospective buyer’s driver’s license. Write down his full name, and the license number. If he asks why, tell him your insurance company requires it. Hang on to the information, until the transaction is done and the money is in your hands. It’s good protection, in case you have the misfortune to be scammed.
Negotiations and the Transaction
So, someone’s interested? Great! What’s next?
Well, it’s reasonable to expect the buyer may want his or her mechanic to thoroughly check out the car (at their cost). We think that’s always a good idea it’s due diligence on the part of the buyer, and it could prevent claims at a later date that you tried to hide a serious problem.
The owner should take the car to the garage. Why’s that? Imagine if there were an accident, or the radiator blew up on the way to the garage. Taking the car to the mechanic yourself is a great way to avoid the prospects of that scenario occurring. Besides, look at it this way: if they’re serious enough to pay for an inspection, the chances are good that you’re about to get a legitimate offer on your car.
If you’re the seller, we’d suggest meeting the prospective buyer at the garage, after the mechanic has inspected the car.
It’s important to remember that the mechanic’s report is the property of the prospective buyer. You shouldn’t necessarily expect to be able to pour over it in detail or ask the mechanic a lot of detailed questions.
But, fortunately, you have your own report. Use your mechanic’s findings to refute anything that seems unreasonable.You can negotiate a fair price right at the garage, once you’ve discussed the mechanic’s report with the prospective buyer. From time to time, the mechanic may even be happy to act as a mediator in reaching a final price.
If, at any point, you get uncomfortable with the process, don’t allow yourself to be bullied. You can always say, “I’d like to see a copy of the report, and share it with my mechanic.” Don’t allow the buyer and his mechanic to gang up on you.
If you’re the seller, you should have in mind the lowest price you’re willing to accept. Be ready to deduct the cost of any repairs about which you were not already aware, and which you agree are reasonable.
Once you’ve agreed on a price, we sugest going to a gestoria to do the ownership change or if your Spanish is good do it yourself at your local traffico office, this can save you money.
A Bill of Sale, is also a good idea. For an added bit of protection, we suggest you ask to see the buyer’s driver’s license and write down their full name and the license number.
As for payment, we suggest cash or a bank transfer. Be sure the money is in your account before handing over the keys.
- Yipee!
Congratulations – You Sold Your Car!
It looks like you’ve just sold your car! Is the buyer out of sight? Are you certain? Count to sixty. Look down at that money, burning a hole in your pocket. You did it!
