Selling a used car is preferable to trading. You’ll receive close to full retail value rather than accepting wholesale value if you trade.

Prepare to sell your used car :

Psychology is a powerful and important part of buying and selling cars. Perception can be reality. What a potential buyer thinks and feels about your used car might be a Chevrolet car, BMW, Honda, Mitsubishi etc is more important than facts and figures. If a potential buyer sees your car is filthy inside and out, she is very likely to assume, rightly or wrongly, that you don’t take any better care of your car in other ways.

The implication might be that you don’t change your oil, don’t perform regular maintenance, don’t make necessary repairs, and don’t take care when driving. So, the simple fact that you didn’t take the time to clean up your car could easily kill a possible deal.

Although some savvy buyers might look past the dirt on your car and see it for what it really is, you really don’t want to assume that this will always be the case. On the other side of the coin, a beautifully immaculate car can cover up poor maintenance and serious problems. Buyers who are blinded by the glow and shine can make serious mistakes if they don’t look further.

Pricing properly :

One of the biggest predicaments facing used car sellers is what price to ask. A price that is too high will discourage potential buyers. A price that is too low means money unnecessarily thrown away.

Unfortunately, there are no standard prices for used cars. There are a number of guidebooks (some only available to dealers and lenders) and online pricing sources, such as Edmunds, Kelley Blue Book, and NADA Guide, that are just that — guides. Prices can vary from one area of the country to another and can be affected by short-term new-car discounting and rebates.

Where to sell your used car :

There are essentially two ways you can sell your car, depending on how quickly you want to sell and how much money you want. First, you can sell wholesale. This means you sell to a dealer for a low wholesale price and the dealer resells at a higher retail price to make a profit. Carmax is an example of a major dealer that buys used cars from individuals.

If you have a relatively new, clean, low/average mileage vehicle, you should talk to new car dealers who have a used car lot. They may be interested, especially if the car is of the same make that they sell new.

Otherwise, talk to independent used car dealers, especially CarMax, if you have them in your area. Wholesale auctions in your area are also a possibility, but be aware that there are fees involved.

How to negotiate :

Light haggling should be expected when selling a used car. The buyer typically knows you set your price high and wants your “selling” price. They may have already done some pricing research.

Start by offering your asking price and explain why you feel the price is fair, based on your own research. Point out the positive features and characteristics of your car. Some good “positives” could be the following:

    * low mileage
    * add-on equipment
    * original owner
    * no accidents
    * low insurance costs
    * low maintenance costs
    * remaining warranty
    * good gas mileage

Closing the deal :

After you and the buyer have agreed upon a price for your used car, all that remains is the exchange of goods, title, and money — and a paper record of the transaction, generally called a Bill of Sale.