Sell car privately or to dealer?

[Walt34]

I think the only time we've traded in a car was when we bought DW's Honda. The transmission on her 2003 Buick Century was going out at 173k miles and replacing it would cost about what the car was worth. So I figured telling potential buyers that the transmission was going would make it worth about $500, which is what the dealer offered. Without the transmission issue it would have then had a value of ~$2k.

In the past we've sold them to private buyers, or in one case we gave her old Oldsmobile that was having reliability issues to her nephew - they needed a replacement car quick at a very stretched time. It lasted long enough to allow them time to save the money for a decent used car.

 

[Midpack]

You could definitely make more with a private sale, more than trade-in but less than a dealer retail.

But we keep our cars until they're not worth much, so we trade to avoid the hassle of a private sale. A private sale might go well, but it might waste a lot of time too, bottom feeders, etc. But the main reason is I wouldn't do a private sale - I don't want a confrontation if something goes wrong with the car, even though I would never knowingly sell a car with any significant issue. At 7-10 years old, something major could always crop up. YMMV

 

[eta2020]

I sold 3 used cars on Craigslist.
It is no brainer and you will certainly get much better deal then from a dealer.

I must say all 3 of them were ran to the ground Hondas

 

[FIREd]

When I sold my car last spring, I did not want to deal with private buyers (too many flakes). I decided to sell to Carmax instead. The process was quick and I received a very decent offer. They took care of all the paperwork too. In under two hours, I had a check in my hand.

 

[Midpack]

When I sold my car last spring, I did not want to deal with private buyers (too many flakes). I decided to sell to Carmax instead. The process was quick and I received a very decent offer. They took care of all the paperwork too. In under two hours, I had a check in my hand.

I sold a 3 year old Maxima to CarMax and definitely got more than any dealer trade in. But when I went to sell my 7 year old Volvo to CarMax, their offer was really low, so I assumed they're trying to politely but strongly discourage sellers of older cars. Is that the general consensus? It would make sense that they probably want only 'late model' cars in their inventory.

 

[FIREd]

I sold a 3 year old Maxima to CarMax and definitely got more than any dealer trade in. But when I went to sell my 7 year old Volvo to CarMax, their offer was really low, so I assumed they're trying to politely but strongly discourage sellers of older cars. Is that the general consensus? It would make sense that they probably want only 'late model' cars in their inventory.

My car was 5 years old but with low mileage and in very good mechanical condition - though it had a big scratch on the front bumper. Looking at their lot, they did not seem to have many older models for sale, so you may be right.

 

[JOHNNIE36]

Interesting thread. I have a 2013 Prius V that is leased. Time coming up in the spring to turn it to the dealer and lease another one. The Prius is a great car, 26000 miles, had after market leather installed and it gets 41mpg . Leasing is just the way I like it. No hassle selling; however, I am wondering if the car is worth more than the payoff amount? It might be possible to sell it for more, like maybe $1000. Haven't checked this out yet but might do that next week.

 

[harley]

Did get a lot of weirdos contacting us when we sold our old Airstream MH on craigslist this year, but got a gem of a young guy in the end, who we've offered permanent advice-giving on its quirks and oddities.

You sold the Airstream? Where are you going to sleep at Floydfest?

 

[rbmrtn]

I sold a 3 year old Maxima to CarMax and definitely got more than any dealer trade in. But when I went to sell my 7 year old Volvo to CarMax, their offer was really low, so I assumed they're trying to politely but strongly discourage sellers of older cars. Is that the general consensus? It would make sense that they probably want only 'late model' cars in their inventory.

I sold a 15yr old 200k+ miles to them when I was buying a car from them. The price they gave was ok considering the car and it was a lot easier to get rid of it.

From what I understand, they don't put many of the "trade-ins" on the lot. They wholesale them off at other car auctions.

 

[Al in Ohio]

I've never traded in because the dealers have always offered crappy prices. It's pretty easy.
- Advertise on Craigslist.
- Require cash for payment, but be willing to go to their bank with them to get cash/cashiers check drawn from their account.
- Make sure you file the appropriate paperwork showing you sold it. (In CA there's a downloadable form from the DMV site). This is important because if they don't register it in their name, parking tickets they rack up are on YOU. (Happened to a nephew.)
- If you're aa AAA member you can often do the registration paperwork at their- that way you know they are registering it in their name.
- If you have written maintenance records, that helps with the sale.

I keep my cars forever - but over the decades have sold 3 cars and 1 motorcycle. Plus helped nephew sell the car that had the sketchy buyer that didn't register it. (Learned from that.)

Like Rodi I have sold my last four cars via Craigslist and keeping a for sale sign in the window. It's really pretty easy. I let them see my well documented and complete maintenance records take a test drive ( if they steal it it's an instant sale via insurance coverage!) and then if they want it after the test drive and settling on a price I take a cash deposit of several hundred dollars, write up a sales contract ( simple one page) and they sign it. We meet at my credit union and bring a certified bank check which ai deposit right there at my credit union while they wait and the notary at the bank notarized the title after ai sign it and hand it to the new buyer. I take off my old plates, they put on their old plates (good for 30 days on any car transfer) or get a temp tag, and they drive off. The BUYER pays sales tax when they arrive to register the car title to NEW plates. I am DONE once the cashiers check hits my bank account.

I have sold half my cars to the first person who came to see it. It's over in less than an hour. I clear a lot more sales price this way. I figure for the time involved it like making $500 an hour. Seriously.

So my one suggestion that differs from Rodi is to have them arrive at YOUR bank with their banks certified bank check so it can be deposited and verified by your teller that it's cleared before your sign the title over to them in your savings institution's lobby. That's one step more foolproof.


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[Tailgate]

thanks for the info...very helpful. OP

Like Rodi I have sold my last four cars via Craigslist and keeping a for sale sign in the window. It's really pretty easy. I let them see my well documented and complete maintenance records take a test drive ( if they steal it it's an instant sale via insurance coverage!) and then if they want it after the test drive and settling on a price I take a cash deposit of several hundred dollars, write up a sales contract ( simple one page) and they sign it. We meet at my credit union and bring a certified bank check which ai deposit right there at my credit union while they wait and the notary at the bank notarized the title after ai sign it and hand it to the new buyer. I take off my old plates, they put on their old plates (good for 30 days on any car transfer) or get a temp tag, and they drive off. The BUYER pays sales tax when they arrive to register the car title to NEW plates. I am DONE once the cashiers check hits my bank account.

I have sold half my cars to the first person who came to see it. It's over in less than an hour. I clear a lot more sales price this way. I figure for the time involved it like making $500 an hour. Seriously.

So my one suggestion that differs from Rodi is to have them arrive at YOUR bank with their banks certified bank check so it can be deposited and verified by your teller that it's cleared before your sign the title over to them in your savings institution's lobby. That's one step more foolproof.


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[pb4uski]

....So my one suggestion that differs from Rodi is to have them arrive at YOUR bank with their banks certified bank check so it can be deposited and verified by your teller that it's cleared before your sign the title over to them in your savings institution's lobby. That's one step more foolproof. ....

I just had them bring cash and deposited it to my bank account and then I signed the title. Even more foolproof I think.

 

[Totoro]

however, I am wondering if the car is worth more than the payoff amount? It might be possible to sell it for more, like maybe $1000. Haven't checked this out yet but might do that next week.

Normally not. Lease companies figure the car you already drive is worth more to you than to another potential buyer.

But it can be worth negotiating, it saves them handling costs. Just be sure to demonstrate willingness to walk away.

 

[wmc1000]

I have sold a few cars and the 1 thing is I always keep my plate and I give them the title along with a bill of sale. They can then drive the car, at least in my state, until they get to the BMV.

 

[pb4uski]

Interesting because technically in some states there is no grace period and in theory you are supposed to go to DMV and get the car registered before driving it. It is sort of a hurdle to discourage private sales and encourage dealer transactions. However, as a practical reality very few do and they just slap on a plate from another car or an old plate and take their chances.

 

[Walt34]

Interesting because technically in some states there is no grace period and in theory you are supposed to go to DMV and get the car registered before driving it.

It's that way in WV and MD. Not doing it can be very expensive if you get caught. In MD ~1991 it was a $250 ticket and the car was towed. I'd bet that fine has since doubled.

When I sold my motorcycle last spring the buyer and I did all the paperwork and he left the bike in my garage overnight. Came back the next day with a new tag and rode away.

 

[EpicRider]

Another recommendation for selling yourself vice selling to CARMAX, etc....

I have sold and purchased multiple cars on craigslist; autotrader and autotrader classic. Craigslist is much more common for car enthusiast (classic; specialty cars, etc.) because you can find some great bargains. Autotrader is fee based, so it does have a little more of a barrier to limit bogus car sales. Although, most illegal car sales on Craigslist are easily identified based on sales price and comments that "flag" it for most buyers.

Regardless if you do sell yourself recommend you consider the following:
-Pictures: exterior; front/back; both sides; maybe engine bay & interior; craigslist permits multiple pic's; believe up to 12 at this point.
-Maintenance/receipts: Car has really low mileage, so not surprising if you don't have a lot but any documentation is helpful to show the car was maintained. Original purchase documentation is also good to show how much the car sold for and whether it included any special order items.
-State DMV: As others have mentioned reference your states DMV for private car sale documentation. They usually have a good bill of sale example and a link to notify the DMV when the car is sold.
-Contact info: Craigslist also lets you list an item with only an email account for contact, so this does provide you an easy way to "screen" out people before agreeing to meet. You decide who to follow up with and discuss the car. You do need to be careful about who you meet and if you price it low, expect a lot of emails because "car flippers (buy & sell)" are very aggressive in closing deals quickly. If you do provide your number be sure to mention if you want "text" or not.
-Payment: Lastly, I would recommend NOT using your bank for the final sales meeting because in my experience unless it is cash, your bank will not be able to verify the cashiers check; a couple days hold is likely. So unless you do a cash transaction, I would meet at the "buyers" bank so you know the cashiers check is legitimate or conduct a wire transfer of funds. It depends how comfortable you are with the purchaser and obviously where they bank might also be an issue. Cash obviously works, but make sure you have a "fraud marker pen" to check the large bills and a plan to get it deposited ASAP.

Regardless, how you decide to sell, I expect it will be a quick and easy transaction based on the mileage and car model. Good luck & have some fun with the process.

 

[foxfirev5]

We buy our cars new and keep them for well over 10 years. Since the residual value is so low it really doesn't matter how we dispose of them. Sometimes it was in the front yard at the lake house and more recently trade it in to the dealer. Just like real estate I like to minimize the number of transactions over the years. That's where you save $$.

 

[Al in Ohio]

I just had them bring cash and deposited it to my bank account and then I signed the title. Even more foolproof I think.

Well yeah, but I typically sell a well maintained 7-8 year old low mileage Honda for six to ten grand. That's too much cash for most people to travel with IMO. By the he way, I should have added that the contract and deposit usually occurs same day they test drive and the final sale with balance as bank check is usually next banking day after they arrange to cut a check.

I had one buyer want to borrow the car and take to their mechanic who told them it was in excellent shape other than problem with one tire and alignment. We split that cost for $150 each and it was sold. Months later that buyer sent me a $25 gift card they were so happy with the car.

 

[Dash man]

I just traded in my 2007 Acura to a dealer. They offered $10k, I said $13k, we settled at $12k. I think it was worth not having to deal with the hassle of selling it myself. I had financing all lined up before the purchase at .99%, but they offered a discount on the purchase of $4500 if we financed with them. So we took it even though it was 1.79%. We may pay it off early or keep it invested if we feel the market will do better.


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[Al in Ohio]

You need to learn the difference between a teller check and a certified cashiers check. A certified cashiers check has been guaranteed by the issuing bank that the funds are available and the check is covered by the issuing bank. The funds have essentially been withdrawn from the owners account and are held by the bank the moment the check is created. At that point it's the bank standing behind the check. This check has a fee. It's not a standard teller check. I insist on this check. I will not inconvenience myself by driving to a buyers bank or anywhere not on my terms.

Certified bank checks should be used whenever selling real estate, valuable personal property, gold, diamonds, or silver, etc.

Another recommendation for selling yourself vice selling to CARMAX, etc....

I have sold and purchased multiple cars on craigslist; autotrader and autotrader classic. Craigslist is much more common for car enthusiast (classic; specialty cars, etc.) because you can find some great bargains. Autotrader is fee based, so it does have a little more of a barrier to limit bogus car sales. Although, most illegal car sales on Craigslist are easily identified based on sales price and comments that "flag" it for most buyers.

Regardless if you do sell yourself recommend you consider the following:
-Pictures: exterior; front/back; both sides; maybe engine bay & interior; craigslist permits multiple pic's; believe up to 12 at this point.
-Maintenance/receipts: Car has really low mileage, so not surprising if you don't have a lot but any documentation is helpful to show the car was maintained. Original purchase documentation is also good to show how much the car sold for and whether it included any special order items.
-State DMV: As others have mentioned reference your states DMV for private car sale documentation. They usually have a good bill of sale example and a link to notify the DMV when the car is sold.
-Contact info: Craigslist also lets you list an item with only an email account for contact, so this does provide you an easy way to "screen" out people before agreeing to meet. You decide who to follow up with and discuss the car. You do need to be careful about who you meet and if you price it low, expect a lot of emails because "car flippers (buy & sell)" are very aggressive in closing deals quickly. If you do provide your number be sure to mention if you want "text" or not.
-Payment: Lastly, I would recommend NOT using your bank for the final sales meeting because in my experience unless it is cash, your bank will not be able to verify the cashiers check; a couple days hold is likely. So unless you do a cash transaction, I would meet at the "buyers" bank so you know the cashiers check is legitimate or conduct a wire transfer of funds. It depends how comfortable you are with the purchaser and obviously where they bank might also be an issue. Cash obviously works, but make sure you have a "fraud marker pen" to check the large bills and a plan to get it deposited ASAP.

Regardless, how you decide to sell, I expect it will be a quick and easy transaction based on the mileage and car model. Good luck & have some fun with the process.

 

[pb4uski]

Well yeah, but I typically sell a well maintained 7-8 year old low mileage Honda for six to ten grand. ....

Well yeah, but I sold the car in question for more than ten grand... cash.

Your process would not have worked in my case because the buyer drove 3 hours to view the vehicle.

 

[pb4uski]

You need to learn the difference between a teller check and a certified cashiers check. ....

There have been numerous instances of bogus certified cashiers checks... that is why I insisted on cash and since I am not an expert on $100 bills, I deposited it with my bank and then signed the title.

If you’re reluctant to take someone’s personal check for fear that it’s no good, don’t assume that a cashier’s or bank check is any safer.

Counterfeit cashier's check fraud remains alive and well. You can see for yourself just by visiting the website of the Office of the Comptroller of the Currency. ....

Beware of cashiers check scams - Consumer Reports

 

[Al in Ohio]

You have a nice car......if you were trading it in, I'd sell to the dealer since in most States you pay sales tax on the difference. I'd let your friends know its for sale, someone will probably pay a little extra knowing how well it has been kept. And, hopefully, you have maintenance records and some warranty left. Good luck.

To pb4uskie above:
"Certified" Cashiers check. There's a difference.

Why are people implying that a seller would have to pay sales tax? The buyer always pays a sales tax. You already paid sales tax on the car when you bought it. That would be double taxation. That's absurd.

Please provide a link to any state that would require a seller to pay sales tax again for a vehicle they already paid sales tax on previously.

Note: If a buyer implied the seller should pay tax you need to educate them on the fact that you have paid your tax and the deal is contingent on them legally paying tax on their sale. They can't get a title transfer until they pay tax at the state registrars BMV. A seller should never have to be present at the BMV after the sale.

 

[REWahoo]

I sold a boat a few years back and agreed to take a cashier's check once I learned it would be issued by a small town bank. I called the bank and asked them the name of their head cashier.

The day of the transaction - prior to signing over the title - I called the bank, asked to speak to the head cashier and asked her to confirm that they had issued the check to the named individual for the amount specified. She did and I signed the papers.

Yes, the check was good...