7 steps to selling your used car & getting the best deal
Car-buying businesses are growing, sprouting up everywhere and spreading like wildfire. The open secret in the motor trade is that they make a lot of money buying cars and then reselling them.
The business of used cars is very lucrative but notoriously murky, inefficient, and wasteful. Most of these companies pour money into their marketing, with massive billboards, social media advertising, and cringy radio spots, but they're an inescapable presence in many of our lives. But with so many options, it's easy to find yourself overwhelmed.
We interviewed automotive expert William Miller, CEO of DealersOnline, South Africa's largest and most trusted online auction platform. Based on his insights, we laid out a step-by-step guide to help you get started and avoid unnecessary stress.
Step One: Understand what you've got
This means finding out the make and model of your car and any additional features it may have. Popular vehicles such as Polos are often more straightforward with fewer differences. It's also important to note down if you were the car's original owner or if there was a previous owner.
💡 Helpful Tip: You can find most of this information in the original paperwork, the eNaTis document, and your financial records.
Step Two: Find out when your car was first registered
This is also known as the year model. Your car's year model and mileage play a significant role in determining your car's value.
Step Three: Assess the condition of your car
Before taking your vehicle to someone else for inspection, take the time to inspect it yourself. Every car has a life of its own, and you can often start to see this when you take a closer look at the car. This will help you manage your expectations when pricing your vehicle.
💡 Helpful Tip: When looking to sell your car, it helps to evaluate your car as if you were a buyer. Remember, if you are selling to dealerships, they will often have to repair any significant cosmetic damage, which will affect the price they offer you.
Step Four: Research the potential value of your car.
Take the extra time to find out what other vehicles like yours are selling for on the used-car market and see where your car is most popular.
📌 Expert advice William Miller: Often, we'll see that certain used cars are in higher demand in specific areas, so dealerships and private buyers tend to pay a little extra.
Step Five: Make sure you can justify the price you ask for your vehicle.
If you've followed all the steps so far, it will make this step easier. Managing your price expectations is an important part of selling your car. Ultimately, your car is an investment that begins losing its value the moment you start to drive it, so the chance of making back the money you spent on the average car is unlikely.
Step Six: Decide if you want to sell to a private buyer or a dealership.
Ultimately, these are the two choices for selling your car. Both methods have pros and cons, and both require you to put in the time, effort, and energy. Private selling has the chance to pay out more, but it requires a lot more effort on your part and can be risky. Selling to dealerships may pay out slightly less, but the process is often easier and faster.
📌 Expert advice (William Miller): The best way to determine if you're getting the best deal is to show your vehicle to as many potential buyers as possible. However, this is often impractical for the average person and can be time-consuming.
Step Seven: Negotiation is key.
Buyers will want to know as much about your car as possible, so it's essential to be thorough when completing steps 1 to 5. Having your service history and receipts helps give buyers confidence in the car and you as a seller.
💡 Helpful Tip: Remember that a car's value is subjective to the buyer, so making sure that you instil confidence as a seller will benefit the sale. Ensure all your documents are in order and take good quality photos if needed. Small things such as a standard clean before someone views your car goes a long way in showing buyers how well you care for your vehicle.
Everyone will need to sell at least one car at some point. By mastering the steps we've laid out above, your experience will be more effortless and has the potential to make your sale more successful.
There are thousands of options and infinite possibilities between trading in with dealerships and the myriad of professional car buying services accessible with a few clicks. It helps to know that they're all playing slightly different versions of the same game underpinned by the same commercial model.
