Selling your car

Published 5:00 am Wednesday, April 28, 2010

It looks as if consumers may be peeking their heads out of the shells they’ve been hiding in since the Great Recession descended.

Example: In March, 1.06 million cars and light trucks were sold at auto dealerships in the U.S., according to the auto industry source Automotive News. That’s about 200,000 more than the roughly 857,000 sold in the same month last year.

Often, when buying a new car, a consumer will trade in his last car, which can save time. If you trade in, you’re largely at the dealer’s mercy when it comes to the price you get for the car. But if you still owe money on the car, it may be your best option (see “Trade-in?”).

If you decide to take matters into your own hands, try following this road map to selling your car. It may help you get on your way down the road to something new, whether it’s a new car, a commuter bike and a bus pass, or just some cash in your pocket.

1. Assess your car

Using a Web site like Kelly Blue Book’s KBB.com or the “Price Your Car” tool on Auto Trader’s site, Autotrader.com, come up with a fair asking price. On most sites, you can see the different prices suggested for private sales, trade-in values and retail values.

When deciding on a price, be honest about the condition of your car. Beware of starting with an inflated price, as that can turn off potential buyers. Leaving a little wiggle room for negotiation in your asking price may also be wise.

Consider all of your car’s options and features, like a moon roof, after-market rims or a CD player. Make a comprehensive list. Then consider any negatives like body damage and interior stains.

The auto consumer site Edmunds .com says that while family vehicles and work vehicles are always in high demand, convertibles and sports cars are seasonal. “Sunny weather brings out the buyers,” the site says.

2. Detail your car

The next step is to detail your car. You can do it yourself, or you can have it done professionally.

“It has a great effect when it comes to selling cars,” said Adam Martini, owner of Rod’s Automotive Detailing in Bend.

“If a person comes up to a car and it’s not clean, they’re not going to want to mess with it.”

Martini said an interior auto detail will cost about $90-$140, depending on the size of your vehicle. An interior detail consists of carpet and upholstery shampooing, surface cleaning of plastics, window cleaning and a steam clean of the head liner.

Martini warned that if you try to shampoo your own upholstery and don’t get it dry enough afterward, you can end up with a smell in your car that’s nearly impossible to remove.

He said an exterior detail, which consists of a wash, a buff that will take out light scratches and a wax, costs between $125 and $160. A full detail with both exterior and interior cleaning runs between $200 to $275.

3. Advertise your car

Once you have your price, it’s time to start advertising. Place ads for your car in newspaper classifieds for anywhere from $10 to $60 or more. Free Web sites like Craigslist.org can also be helpful. Also consider paid sites like Autotrader .com, which claims to have more “serious” buyers than other Web sites. Ads on Autotrader start at about $20 for a three week online ad, and they go up to or $50 for a “Run ’til It Sells” ad, with extra costs for ad enhancements like graphics and featured placement.

Use the wording of your ad to indicate how serious you are about selling, and how flexible you are on price. “Must sell” means just that, and may bring out bargain hunters; “OBO” means “or best offer,” and “firm” suggests you’ll hold on to the car until you get the price you’re after.

Curtiss King said he has sold and bought a number of cars online, including on Ebay.com and Craigslist. King, who is a mechanic and an auto installer at Sounds Fast in Bend, said besides wading through the “tons” of shady e-mail responses he receives, he likes Craigslist. He said in a free ad with unlimited space, it’s important to list every feature of your car, from power door locks to leather, right down to “a skull stick-shift knob,” he said.

He also suggested posting photos; the more, the better.

When he’s shopping for a car, “If they don’t put a picture on it, I will not call the ad. It could be a scam,” he said. King also said with Craigslist, it’s important to re-post your ad every few days, because as new vehicles are listed, your ad gets “buried.”

Jacqueline Newbold, who lives in Tumalo, said she’s been trying to sell her hybrid Honda Civic since December. She said she only received a couple of what she thought were serious responses from Craigslist. After she grew frustrated with re-posting the ad, she bought an “until it sells” classified ad in The Bulletin, which has resulted in a few phone calls.

She also has a sign in the window of the car, and tries to drive the Honda into town when she runs errands. She’s now considering lowering the price or having her brother try to sell it where he lives, in Hood River. She thinks the milder weather might make the small car more appealing.

“I’m not having much luck,” she admitted. She even tried offering the car to dealerships, but they weren’t interested.

Edmunds.com suggested sellers post ads on community bulletin boards and use word-of-mouth. The site also says “be sure you are available to take phone calls from possible buyers. Many people won’t leave a message for a return call.”

Also be careful about parking your car in public in an effort to get more people to see it. According to Steve Esselstyn, community liaison for the Bend police department, it’s illegal in the city to leave your vehicle for the purpose of selling. In front of your house is fine, as is taking the signed car out with you while you run errands, but you could be in trouble if you try to park it somewhere.

4. Show your car

Once you do make contact with an interested buyer, it’s time to show the car.

King said he trusts his instincts about people he speaks with on the phone. If he’s comfortable enough to consider selling to them, he’s comfortable letting them come to his home to see the vehicle. He also said he tries to make it easy for people. He and his wife have even made trips to a potential seller’s work or home to show a vehicle.

He said when he meets people, he always pulls a Carfax vehicle history report ($35 on Carfax .com) and has it ready to show.

Edmunds.com said some buyers will be put at ease if you also get a report from your mechanic, but some people will want to take the car to their own mechanic.

“By now, you should have a feeling for the person’s trustworthiness. If you feel uncomfortable or have reason to think they will steal the car, decline the offer or go along with them,” the site says.

Remember that a car is a major purchase, and your buyer may be nervous about buying from you. Be honest about any problems with the car, or consider fixing them before you sell.

5. Close the deal

If the buyer drives the car and likes it, it’s probably time to negotiate. Think about your responses to common negotiation tactics in advance.

Once you’ve come to a mutually agreeable price, it’s time for payment.

“Never take checks,” King said. He prefers cash, though cashier’s checks are often accepted.

After money’s changed hands, following through with your paperwork requirements is essential, said Oregon DMV spokesman David House.

“When you sell a car, you will need to transfer the title,” he said. Look for the release of ownership on the title, and fill it out before handing the title over to the buyer.

House said sellers should also create a bill of sale. You can make your own bill of sale or use one of the forms at www.oregon.gov/ODOT/DMV/forms/vehicle.shtml.

It’s the buyer’s responsibility to register the car and pay new registration fees, even if there are up-to-date tags on the vehicle. The license plates can stay with the vehicle, but if you want to be sure the buyer will register the car, or if you have vanity plates you want to keep, you can take the plates off the car and get a 21-day trip permit for $30.

Within 10 days of selling your car, you are required to provide notification to the DMV. A link to notify the DMV online or to print a form to put in the mail can be found at www.oregon.gov/ODOT/DMV/vehicle/sell.shtml. Forms are also available at local DMV offices.

The notification can come in handy down the line if the next owner gets in an accident or the car gets towed.

“There have been cases where the judges sided with the towing company,” House said. “I’ve heard cases where someone sold the car, and two years later they get this bill for several hundred dollars. The judge says, ‘Sorry, you did not properly file your notification.’”

House also warned against trying to turn a fondness for fixing up cars into a money-making hobby.

“If you’re selling a car for profit,” he said, and not just getting rid of a car you had for personal use, “you have to have a vehicle dealer license.”

The license itself costs only a couple hundred dollars, but it requires training and a $50,000 liability bond.

“There’s safety issues involved,” he said. “We’re talking about a business, not a hobby.”

Another important detail: Don’t forget to contact your insurance company to cancel the policy on the vehicle you just sold or to transfer the coverage to your new car.

Trade-in?

If you’re in the market for a new car, a dealer trade-in may save you the hassle of selling your old vehicle. You may also want to trade in your car if you still owe money on the loan, because selling to a private party when you still owe can be difficult, especially if you owe more on the car than it’s worth.

“It gets a little more complicated,” said Oregon DMV spokesman David House. “You can’t say that people can’t do that, but a lot of people would recommend against it.”

“In general, you would have the buyer qualify for the loan with the lender you have,” he said. You’ll first need to contact your lender to find out their rules about transferring ownership of the car.

A dealer generally has the ability to take the car, pay off existing debt, and then re-sell the car for a profit. But the dealer’s need to make a profit, plus their consideration of what they already have on the lot, can limit the amount you’ll be offered for the car.

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