Best Ways to Sell a Used Car

You have more avenues to sell your used car than you might think. Below are the main ways to sell your used car, although each method involves many individual prospective buyers ready to submit an offer.

1. Private party 

Figuring out how to sell a car privately can take research and a healthy dose of awareness regarding potential scams. In addition to knowing your asking price, how you’ll handle the test drive, and what paperwork you need to sell your car privately, you should also consider how you’ll conduct the private sale transaction should you get a qualified offer. Accepting only cash works in your favor because it leaves the least room for fraud. 

Several websites allow you to post your used vehicle for sale, including Craigslist, Facebook Marketplace, and eBay Motors. If you’re not familiar with it, research how to sign over a car title. Even if you end up selling your car to a family member or friend, playing it by the book is always a good idea.  

2. Dealership 

Most car dealerships will present you with a cash offer and a trade-in value if you want to sell your car. Approaching a dealer is one of the more convenient options for selling your car fast, but that doesn’t necessarily translate to your bottom line. Local dealers still have to make a commission on selling your used car after paying for it. 

Similar to selling your car privately or online, you don’t have to take the first offer you get from a dealership. Instead, you can use an offer from another dealership to negotiate a higher trade-in or cash value, depending on your goal. As you’ll see below, websites that help determine your car’s value may also partner with dealerships to simplify the negotiation process (see Kelley Blue Book’s Instant Cash Offer). 

3. Online used car retailer

Popular among lessees who took advantage of the spike in used car prices and said, “Yes, I want to buy out and sell my lease for a profit,” online used car retailers like Vroom, Carvana, and CarMax have altered the used car marketplace landscape. Instant appraisals and competitive offers set these sites apart from traditional used car sales methods. Many of these websites even offer to pick up your car to make the entire process even more convenient. 

Besides offering consumers another avenue to sell their used car online, these virtual retailers make up the middle ground between dubious private party deals and taking whatever a dealership may offer you. These virtual marketplaces also make it easy to find a replacement vehicle, albeit with caveats such as shipping costs and no-haggle pricing. Purchasing an item through a large online retailer is one thing, but slapping down thousands of dollars on a car you haven’t seen in person can put some buyers on edge. 

Proper paperwork can make or break a sale, especially for a used car. Ensuring the buyer has a valid driver’s license, auto insurance, and payment method may be critical to selling your car, but so are the following documents: 

• Vehicle’s title
• Registration
• Proof of insurance
• Maintenance records
• Bill of sale or sales agreement

Although you can sell a car without registration, you may scare away skittish car buyers. While an unregistered vehicle for sale won’t deter everyone, it could be a red flag for some, depending on the situation. For example, some states don’t require registering vehicles used solely on your land, so selling that unregistered farm truck to another farmer wouldn’t raise an eyebrow. 

It’s always a good idea to draw up a bill of sale or sales agreement as official documentation of the used car sale. You can typically find basic outlines of these documents online or consult a lawyer to create one for you. Critical information within a bill of sale includes details surrounding the vehicle sold (make, model, Vehicle Identification Number (VIN), model year, color, mileage, etc.), the seller and buyer, and a clause noting the car is sold as-is. Create two copies you both can sign and keep for your records, as the new owner will need it when the register the car at their Department of Motor Vehicles (DMV). 

Determining the value of your used car takes a bit of research and evaluation on your part. The following resources can help you choose an approximate value based on inputs for your vehicle: 

• Kelley Blue Book’s What’s My Car Worth?
• Edmunds’ Appraise Your Car
• Consumer Reports’ Car Value Estimator

You can also search for vehicles similar to yours on the used car marketplace to see what they’re going for. Many auto marketplace websites include guidance on pricing from a potential buyer’s perspective, which can give you insight into what pricing the market demand supports. For instance, if a website calls out a particular listing’s price as above market value, but your vehicle has more going for it than the one listed, you might consider using that value as a benchmark. 

Note that trade-in and private-party values often differ. Getting more for your used car via a private-party sale is common, but trading in your vehicle can be more convenient. Sometimes, it’s best to have a few numbers set in your mind, including your private-party price, trade-in value, and what you need out of the car to make it all work financially. 

Preparing your car for sale can look different depending on how you kept it and how much you want to get out of it. Below are the basic steps you should take to get the most out of your used car:

1. Gather information: Before you start polishing the paint or vacuuming out the carpet, getting top dollar for your used car requires knowledge of your vehicle. The VIN, mileage, trim level, features, and any documentation you can find will help inform the sale. This step can also include taking pictures if you plan to list your car for sale. 
2. Determine fair market value: Find out what other vehicles of similar make, model, and mileage are listed and going for in your area. Figure out a range of pricing by comparing your car to what’s already on the market. 
3. Decide on repairs: Weigh the return on investing a little money in the car before selling it. Will paying someone to fix a few dents, detail the car, or repair a component fetch double or triple that investment? While you can sell a non-running car, offloading one that moves under its own power is much easier. 
4. Shop around for offers: Unless you’re determined to sell to a particular platform, dealership, or seller, shopping your car around to see what deals you get can help you find the best offer. Timing plays a significant role, as used car prices fluctuate.

Some car owners find they want to keep their car after preparing it for sale. If the sale price isn’t right and you’re not in a rush to sell, sometimes waiting can put you in a better position. Remember that as used car prices increase, so do the price tags on your next car.