5 Steps to Sell a Used Car

When you make a decision to sell a used car, you want the process to go smoothly. If you approach the sales process in a disorganized fashion, you could lose money in the final negotiated price. Here are the five steps to keep you on track when sell a used car.

1. Make Your Vehicle Marketable

Before you put your car on the market, you have to make it the best it can be (at least for the price you want to get for it). Clean your car inside and out. Cleaning can net you more dollars at the end of the sales process.

Make a list of all minor repairs you can do yourself and take the time to make those repairs. Or take it to your mechanic to do some or all of them. If major repairs are required, it may not be worth it to do them, unless you think you can get enough money to cover it. Otherwise, give a full disclosure to potential buyers and account for the needed repairs in your asking price.

2. Decide on Your Asking Price

Once you spruce up your vehicle, check www.kbb.com to find out the worth of your vehicle if sold to a private buyer. You'll have to enter information such as car accessories and the condition of your car. This research will give you a good starting point for your asking price.

Check classified ads online for your city, as well as in your local newspapers. What are similar cars actually selling for? With your data, you can determine the right asking price for your vehicle. Potential sellers will try to negotiate a lower price, so leave yourself some wiggle room.

3. Advertise Your Car

There are multiple ways to sell a used car for free. Put a "For Sale" sign in your rear and back windows. You can buy one at a local hardware or dollar store. Be sure to write your phone number in large and visible figures so that people can quickly see and write down (or remember) your number when they see you driving around.

List your car on www.craiglist.org and post your ad on local community bulletin boards (like in the grocery store). Take a picture of your car from all views, including inside the car, if you want your ad to be effective. If your car has a high asking price, consider purchasing an ad in your local newspaper or car trader as well.

4. Allow for Test Drives and Mechanics

Interested buyers may ask to take your car for a test drive. Cars are a major investment for many, and they want to have the assurance that it won't break down right after their purchase. You should agree to a test drive, but take the necessary precautions to make sure your car doesn't get stolen. Ask to hold onto their driver's license while they take it for a test drive, or go with them if you feel comfortable. Allow them to take your car to their mechanic if they ask. Use the same precautions.

5. Complete the Payment and Paperwork

Every state requires some sort of paperwork when you sell a used car. After you negotiate and accept a final price for your car, you can't just hand over the keys. Contact the DMV to find out what they require for evidence of the transfer of ownership. You may need a bill of sale, and you may need to specify things like "sold as-is." Some states may require a smog certificate.