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Why should I sell my Car instead of
trading it in?
It's simple—to boost your profit. Sell it
yourself, and you get a higher value out of your car.
Depending on the age and condition of your car, you can pocket
an extra 25,000 to 40,000 or more. If you have a late-model
vehicle, you stand to make much more. Just think of it as
cutting the middle man out. If you trade your car in, the
dealer has to pay to clean it, advertise it and sell it while
making a comfortable profit. Your lower trade-in reflects
that. Besides, with today's online resources, selling your car
is easier than ever. Find out all you need to know to put your
car up for sale, and then list it at a less expensive price
than traditional printed classified listings. Plus, you reach
more buyers in your area—and across the country, thanks to the
Internet. You can advertise for free on AutoIndia.com and
millions of people see your advertisement. Here are 10 simple
steps that will help you turn your used car into cash. Buyers
from down the street, or across the country, will read your
ad. You can even e-mail potential buyers, sending them
additional photos or answering their questions about your
vehicle. In general, selling your car today is a completely
different experience than it was just 10 years ago. Everything
from pricing, advertising and negotiating is covered in this
short, easy-to-follow process.
Step 1: Know the
Market
The first step in selling your car is to
know your market. In other words, is your car a popular model
that buyers will be interested in? Will you have to drop your
price to sell your car because it is not in high demand?
Knowing the market -- the potential buyers -- will help you
answer these questions.
The more you know about the kinds of
people interested in your type of vehicle, the better able
you'll be to reach that audience. For instance, if you are
trying to sell a convertible, you will want to advertise in
the warmer months when people really wish they could put the
top down. The same goes for sports cars, which normally sell
better in the summer months. If you are selling a family
sedan, you will want to reach suburban families possibly by
placing an advertisement in internet or news papper.
Knowing as much
as possible about your car and the prospective buyers can save
you time and money. It will help you get the best price
whether you are selling your car yourself or trading it in at
a dealership. According to AutoIndia.com, family sedans and
sport utility vehicles (SUVs) are always in pretty high
demand. MUV’s and vans that can be used for work purposes are
steady sellers and should command competitive prices. Be
careful not to underestimate their value.
Finally, use the
Internet and local classified ads to find out how many similar
cars are on the market. When comparing your car to similar
cars listed for sale, you will want to take into account
factors including the car's age, condition and mileage.
Remember that cars with less mileage will sell for higher
prices. To help you determine the asking price for your car,
check out the next section.
Step
2: Pricing Your Car
When you
originally decided to sell your car on your own, hopefully you
already had a good idea about the condition of your car so
that you could set a realistic price for it. If you haven't
already done so, make sure that you assess the car's
condition, and then decide how much you want to spend on minor
repairs.
The
most important thing you must remember before you decide to
sell your car is that you generally can get a lot more money
by selling the car yourself than by trading the car in at the
dealership. If you do decide you want to trade in your car at
a dealership, beware of two things: a very high trade-in value and a very low
one.
According to AutoIndia.com, when a dealership
offers you a high trade-in value for your vehicle, it will
most likely use the price against the purchase of your new
car. The dealer will cover the loss on the used car by making
you pay a higher price for the new car. Thus, you won't be
saving any money. If the dealer offers you too little for your
trade-in, it may suggest that you're getting a low price for
the new car. Remember that you can negotiate a fair trade-in
price at a dealership, but know that you will probably get a
higher price selling the car on your own.
One another
important thing to remember when selling your used car online
is to price it competitively. Most people looking to buy a car
online have access to many vehicles for sale, and many car
prices from which to compare. Finally, be sure to leave a
little room in your asking price. In other words, ask for
slightly more money than you are actually willing to accept.
The best way
to price your car is to know what other sellers are asking by
looking at AutoIndia.com and local news papers. Last but not
least, keep an eye on your classified ad. If you are not
receiving any inquiries from interested buyers, then you may
want to lower your price.
Step 3: Get your Car
Ready?
The most important thing when a buyer
comes to look at your car is that the car makes a good first
impression. There are some things you can do to make sure you
and your car make a good impression on a potential buyer.
You should
expect potential buyers to investigate the car fully. If your
car is in the best possible condition, you will have a better
chance of enticing potential buyers.
Here is a to-do list that will help you
turn your heap into a creampuff:
• Make sure it
is washed, waxed and detailed. "Curb appeal" is probably the
most important element of selling a car.
• Inspect the
car and make sure it is both mechanically sound and free from
dents, dings and scrapes.
• Consider making all repairs yourself
rather than selling it "as is." If you can save money while
still making it look good and making it run well, you won't
have to charge a higher selling price just to recoup any
last-minute expenditures.
• Clean all the junk from the inside of
the car. When prospects go for a test drive, you don't want
them to feel like they've walked into your bedroom or some
intimate place. Let them visualize the car as theirs.
• Wipe the brake
dust off the front wheels and clean the tires with a product
such as Armor All.
• Thoroughly clean the windows (inside
and out) and all the mirrored surfaces.
• Wipe down the
dashboard and empty the ashtrays.
• Dig out all your maintenance records
and have them ready to show interested parties.
• If the car
needs servicing or just a routine oil change, have that taken
care of.
•
Have your mechanic check out your car and issue a report about
its condition. You can use this to motivate a buyer who is on
the fence about buying because you have overcome one more
objection they can present. You should expect potential buyers
to investigate the car fully. If your car is in the best
possible condition, you will have a better chance of enticing
potential buyers.
Remember, first impressions are
important, before you start showing the car to buyers, step
back and look at your car one last time. Does it look better?
Are you more confident about the condition of your car? Now
you know what the professionals know. These small steps may
take a little time, but don't cost much and can make the
difference of hundreds and even thousands of rupees in your
final selling price.
Now that your car has been inspected and
cleaned from top to bottom, you need to get the word out to
prospective buyers.
Step
4: Where to Advertise Your
Car
Some people sell cars by word or mouth,
but you may not find too many buyers within your circle of
friends and family. That is why you have to advertise. There
are a variety of places where you can advertise your car.
Remember that some ads, such as those in the newspaper, cost
money, while others may be free.
Here are
some markets for advertising your car:
• Online
classifieds such as AutoIndia.com, where you can reach a
geographically large area of buyers
• Local
newspaper classified ads
• Bulletin boards at supermarkets,
libraries and office campuses
• A "For Sale" sign in the car's window
with your contact information It will probably benefit you to
advertise in more than one place. Remember that once you place
your ads, people will begin calling or mailing to inquire
about the car. Many people are hesitant to leave messages, so
do your best to answer any incoming calls.
Step 5: Create Ads That
Sell
Deciding where you want to advertise is
one piece of the puzzle. The other piece, of course, is what
to say about your car. To attract buyers to your
advertisement, you will need to include your car's
characteristics. These include the car's make, model, year,
color and special features. You can check out other ads to use
as a model for your own.
There is more to a winning ad than car
specifications. Your ad should emphasize the most important
selling points of the car. For instance, if the car has low
mileage, say so! Use the selling points that first attracted
you to buy the car. Is the car very reliable? Does it use fuel
efficiently? These benefits should be emphasized in your ad,
but only if they are truthful. Avoid exaggeration.
Finish up your
ad by listing an asking price. (Some sellers choose not to
list a price. This will result in a lot of phone calls from
people asking for this information, who may not be looking to
pay what you want for the car. It may just be easier to list
the price in the ad.) Include your contact information and
wait for the calls to come rolling in.
Step
6: Respond to inquiries
Once prospective buyers
start calling, be ready to answer questions. Prepare callers
for what to expect when they see the car. Answer questions
honestly over the phone. You will save yourself a lot of time
and hassle making appoints that will not turn into a sale.
Make an
appointment with each caller for a specific time, rather than
allowing them to come "sometime after work." Making an
appointment will increase your chances of the buyers showing
up, and if they're late, you don't have to feel obligated to
wait for them. Make sure you ask for a phone number preferably
a cell phone. Don't be surprised if some of the folks don't
show it comes with the territory.
Step 7: Showing Your Car
Now
that the car is ready, it's time to show your car and prepare
for the test drive. Plan out a route with two things in mind,
Safety and convenience.
Remember, when you sell your car, people
will also be evaluating you. They will be thinking something
like, "Here is the person who has taken care of this car for
the past few years. Do I trust him/her? Would I feel
comfortable negotiating with this person?" With this in mind,
you should make a good impression. Make buyers feel as
comfortable as possible.
Describe your car year, make and model.
Knowing the original factory name for the color helps. If
there's a dealer near you that carries your brand of car, stop
by and ask what the official name of the color was in that
year. If not, at least know how to describe the basic
color—whether light or dark—and if it is metallic or not. Know
how to describe the interior color. Ask the caller's name and
use it to personalize the transaction for both of you.
Discuss Service
History of your car. If you have all of the service records,
say so. If not, try to find as many as possible. Records of
any recent work will help, but only if you know how many
kilometers or months ago the work was done. Proof that you've
cared for your vehicle adds to its value.
Potential buyers
will want to test-drive the car. It's not a bad idea to make
sure they have a driver license. Allow the person who is the
buyer to drive and if they have a friend that is their
advisor/mechanic with them, they can ride next. Furthermore,
they may not know the area, so you might have to guide them
along the test-drive route.
Some buyers will want to take the car to
a mechanic to have it inspected. If you have a report from
your mechanic evaluating the car, this might put their doubts
to rest. However, if they still want to take the car to their
mechanic, this is a reasonable request. By now, you should
have a feeling for the person's trustworthiness.
Be ready for
trick questions such as, "So, what's really wrong with the
car?" If you get this, refer them to the mechanic's report or
invite them to look over the car more carefully.
Step 8: Get
to Know Your Potential Buyer
Remember, the main purpose
of the test ride is to present your car in the most positive
light and determine if you are dealing with an interested,
qualified buyer. If you use this opportunity to get to know
the buyer, the process will be relatively comfortable and can
help you save a lot of time.
Before the negotiations begin, have a
conversation with the prospect. Ask them what they are driving
now. Find out why they are looking for this type of car.
Let's say the
test ride went well and now it's time to talk—but not about
money. At this point, the potential buyer may want to make an
offer right away. Although this might seem like the perfect
moment to start talking numbers, you still need to establish a
few things.
First ask, "Are there any questions about
the car?" That's a nice way of asking, "Do you want to have
the car inspected?" Or be more direct if you prefer. The point
is, make sure that all possible negotiating points are covered
before you start talking about money.
Step 9:
Negotiate With the Buyer
If a person comes to look at
the car, they test-ride it and it passes their approval, you
can expect them to make an offer. Most people are
uncomfortable negotiating, so this might take several forms.
"I like the car, but..." This is
the softest way to negotiate on the price. They may not even
state that the price seems too high. However, if they say, "I
like the car, but..." and then lapse into uncomfortable
silence, you might consider an appropriate response. If you
really want to move the car, you could say, "How much would
you be willing to pay?"
"What's your
best price?" This is a more direct way to probe the
seller to find how much he or she would come down. If you get
this from a prospective buyer, don't seem too eager to reduce
your price. }
"Would you
accept?" Now we're getting somewhere. This
buyer has thought it over and is making an offer. But the
offer is being presented in a polite manner designed to allow
for a counter offer.
"Take it or
leave it." This buyer is making an offer that
supposedly leaves no room for a counter offer. In reality,
this buyer might be bluffing. Still, they are sending a
message that they are close to their final price. The only way
to know for sure whether it really is a "take it or leave it
offer" is to leave it. They may be back tomorrow ready to pay
your price. The above are just a few of the openers you might
encounter. Give your response some thought ahead of time so
you won't be caught unprepared when the time comes.
Step 10. Closing
the Deal and Signing the Paper work
The test ride
went well, and the buyer is keenly interested. Now what?
AutoIndia.com shines a light on the road to closing the deal.
Once your
buyer has established interest, it's a good time to discuss
how they plan to pay for the car. You just need to make sure
that they have an approved loan or actual cash. Cash is ideal
for small sums, a bank cheque is the thing for larger amounts.
If you
haven't already, ask the buyer for ID with an address and
landline telephone number. At least if something goes wrong,
you'll know where to find them. Finally, write a receipt for
both you and the buyer, stating that the car is being sold.
When you
sell a car you have to register it with the Regional Transport
Office (RTO). Every car has its own Certificate of
Registration (RC) book that keeps track of the history of the
car.
As a
seller of a car, you need to ensure that all the legal forms
should be filled in completely and submitted to the right
authorities. When the ownership of a vehicle changes, the
seller must inform the RTO with whom the vehicle was
registered, within 14 days.
If the RTO in whose jurisdiction the
vehicle is being transferred is in another state, then the
seller must obtain a NO OBJECTION Certificate (NOC) from RTO
and forward it to the RTO in whose jurisdiction the new owner
stays. An application for NOC must be accompanied by :
• Application
for new car registration or Form 20
• Photocopy of
the invoice, insurance policy, ration card or telephone bill
as proof of address.
• Original Sale Certificate or Form No
23, Sales Tax Receipt, Octroi Receipt
• Pollution
Under Control Certificate from the manufacturer or Form No 22
• Letter
from the financier, in case you have taken a loan to purchase
a car, addressed to the RTO asking them to endorse their lien
on your car registration certificate book or Form No 34
• Imprint of
your cars Chassis Number
As the seller does not want to retain his
insurance policy, his insurance will be deemed to be
transferred in the name of the new owner at the time of
transfer of the vehicle. However, the new owner must inform
the insurance company and get documents transferred in his
name within a period of 14 days.
It is in the interest of the seller that
the concerned RTOs are intimated as early as possible, with
evidence of such information (registered post, receipt etc.)
If such intimation is not made and the vehicle is involved in
a crime, accident or traffic violation, the authorities will
hold the original owner responsible.
When done
correctly, selling a used car can be a win-win situation. You
have turned your used car into cash and provided reliable
transportation for the next owner. Focus on the benefits to
both parties and you are likely to have a smooth and
profitable experience. |
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