Besides deciding where you will advertise, you should be prepared to deal with prospective buyers and learn what paperwork you need to close the deal.
Start by advertising. You can put signs in the car’s windows and park it in an area that gets lots of traffic. But be aware that some areas have begun cracking down on this practice, trying to avoid impromptu "car lots." You can advertise your car in a local newspaper. This is one of the most common methods of selling a car. If possible, use a paper that has a circulation close to your home. When you place an ad, give a phone number where you can be reached either in the daytime (if it's convenient) or in the evening. List the price for the car. It's usually best to ask a few hundred dollars above your target price to leave room for negotiation. List the important facts about the car - the year, make, model. List any important features that you think will draw buyers, such as "excellent condition" or "very clean" or "must sell" or anything else you wish to emphasize. Keep it brief and to the point. Remember, you're usually paying by the word for your ad! Be prepared to answer plenty of calls (many of which lead to "no shows"). It would be a good idea to make a list of the answers to most of the questions people have and keep it by the phone. Some common questions are:
How many miles on the car?
What features does it have? (power steering, air conditioning, automatic transmission, cruise control, power windows, power seats, sunroof, fancy wheels, brand of stereo, etc.)
Is there anything wrong with the car? (body damage, known mechanical problems, etc.) Keep in mind that misleading statements, although hard to prove, are illegal.
Why are you selling it?
When someone says that they want to come and see the car, there are a few steps you should take. Set a time that is convenient for you when you'll have a couple of hours to spare. The buyer will want to test drive the car, and will probably just look at it for a while. Be prepared to go on any test drive by either having a friend come with you or by telling a friend where you're going and when you'll be back. You should also obtain some proof of identity from the buyer and pass that information along to your friend as well.
When the prospective buyer shows up, if you feel uneasy about the situation, say the car has been sold already and close the door.
The buyer may want to have the car checked out by a mechanic. You can either agree or not, but it's best to agree. That way, if there's a mechanical problem with the car later, the buyer will have less reason to come back to you. If you decide to let the buyer have the car checked, offer to take the car yourself. AAA can provide a thorough checkup at any of our AAA Diagnostic Clinics. If you've already had a mechanic look at the car, you can offer the buyer a copy of the report. Some buyers may be willing to accept that in lieu of having the car inspected again.
Once you've agreed to sell your car to a particular buyer, you'll need to take care of some paperwork. First of all, you'll need to supply the smog certificate, as noted above. The next item you'll need is the vehicle's title, commonly known as the "pink slip." There is an area on the title where you, the seller, release your interest in the car. There is also an area where the buyer fills in his or her information.
CAUTION: Do not fill out these areas until you are certain that the transaction is definitely happening. Do not sign over the title until you get paid by the buyer. You should accept only cash or a certified bank check. Don't take a personal check or a promise to pay. Once you have been paid satisfactorily, you can sign the title over to the new owner. You might also want to fill out a bill of sale: two copies, one for you and one for the buyer.
If you are writing your own bill of sale, you might put in a statement to the effect that "This car is sold as-is with no warranties either expressed or implied," to help protect you. The bill of sale should be signed and dated by both parties. One copy should be given to the buyer and one copy retained by the seller.
Note that an odometer reading disclosure is required upon transfer of ownership. If the odometer is incorrect or has been altered, you must disclose that fact to the buyer. Both federal and state laws require this. If you need more information about odometer disclosure, contact your local DMV or AAA office.
Once all the paperwork has been completed, you're ready to present the keys to the buyer. There is one more form you should fill out, though. This is a release of liability form, available online, from the DMV or at your local AAA office. This form states that you sold the car to someone on a particular date and are no longer responsible for it. If the new owner doesn't register the car and then gets a bunch of parking tickets, you won't be liable for the tickets if you've filed this form.
Selling a used car yourself is difficult, time consuming and often frustrating. But if you want to get the most money for your car, this is the option to choose. If the amount of cash you want for the car is not the major concern, other options may be more attractive.
