Even as the Coronavirus (COVID-19) travels around the globe, life continues. Schools have moved to online classes, grocery stores are offer delivery, and restaurants use take-out only. But what about those plans to sell your vehicle to make way for a new one?
The Coronavirus has thrown up a few obstacles that we didn’t deal with previously. Kelley Blue Book has put together this guide of how to use online resources and common sense to sell your car in a Coronavirus environment.
Here’s how to get the most for your online sale:
1. Find your price point
Your car has a definite value. It is up to you to know what that is so you will maximize your profit and hopefully minimize the cost of your next one. Checking on KBB.com will help you understand how much to expect when selling to a private customer, to a dealer, or using it as a trade-in. If you want to go beyond knowing the value of your car, KBB.com’s Instant Cash Offer tool allows participating auto dealerships to make an offer on your car, truck, or SUV. If you feel the offer is fair, and want to quickly sell your car, you can take the dealer up on its offer*. You should consider how much extra you’ll make by selling to a private customer. Remember, you still have to advertise it, clean it, photograph it and more. You’ll also have to process the paperwork with a private party if you’re going to sell it yourself.
Due to ongoing public response to the COVID-19 outbreak (which has restricted or limited the activity of the vehicle markets in most states), certain Participating Dealers may be temporarily unable to redeem some or all Offers.
2. Be sure your car is in good working order
Make sure your car is in good working order. Most people don’t appreciate a fixer-upper that puts a smile on the face of your mechanic every time you drive in for service. By replacing worn tires, repairing squeaky brakes, or even taking care of a cracked windshield that is most likely covered by insurance, you will be able to maximize the value of your vehicle. This is especially true when it comes to safety-related features. By making sure they are in top shape, you can avoid any issues that may crop up when the buyer’s mechanic inspects your car.
3. Detailing is a must
A dirty car is one of the quickest ways to turn off a prospective buyer. With the Coronavirus top of mind, a clean vehicle is now more important than ever. At the very least, your car (and prospective buyer) deserve a detailing job that will show the car in its best light. Start on the exterior with a wash and wax, then move inside for vacuuming and even carpet cleaning, if warranted. If possible clean the engine with degreaser and soapy water to remove years of road grime and dirt that accumulates under the hood. Make a specific effort to clean the windows. Clear, sparkling glass can make any car seem newer and fresher, whether standing outside or taking a test drive.
But that’s not all. A car’s steering wheel is a haven for germs, even when there’s not a global pandemic. The rest of the interior is also vulnerable, but the steering wheel is the one surface that invariably will be touched by the driver. After the interior is detailed, go through it once again, using antibacterial wipes and other non-ammonia or non-bleach cleaners. Ammonia and bleach cause a reaction when cleaning vinyl, and other interior materials and can cause those materials to deteriorate and become sticky to the touch.
4. Show your car off
Online buyers want to see a car from every angle. The best time to shoot is on a partly cloudy day without shadows, or against a plain background such as the side of a building. If you are experienced with shooting and can make the car sharp while blurring the background, do so.
Make sure to capture the details of your vehicle. Photograph it from the front, the side, ¾– front and rear angles, as well as above and below, if possible. Show close-ups of any items you may have added while owning the car. Photograph a clean engine, and clean wheels. Wide-angle lenses can help make the car’s interior appear larger than it is. Avoid photos after dark, and make sure they are sharp and well-exposed. If you advertise the car as being free of rust, be prepared to show that.
5. Carefully choose your venue
While free local ad sites hold some appeal, caution is the watchword when dealing with prospects from these sites. You may want to consider established paid advertising sites like KBB.com and Autotrader.com that not only have consumer shoppers that are serious about buying a vehicle, but more importantly, local dealers who may be looking to buy your vehicle. There are also tools like the aforementioned Kelley Blue Book’s Instant Cash Offer or other direct dealer purchase opportunities. You won’t necessarily get as much as a direct private party sale, but also you won’t have to go through the hassle of showing the car to multiple prospects.
However, if you do decide to sell directly, remember to make arrangements to meet a prospective buyer in a public setting, or even at a local police department “online safe zone,” where people who are buying and selling, via these platforms, can do so in safety.
6. Show me the Vehicle History Report
A vehicle history report can provide prospective buyers, whether private or a dealer, some peace of mind when it comes to charting the vehicle’s previous life. The car may present well, but if it has been subjected to a flood, or has a salvage title, it will reduce the vehicle’s value. A buyer will want those details in advance so they can make an informed decision on whether to purchase or not.
7. Buyers need patience
Most buyers will have many questions about the car you are selling. You might not be able to answer them all through a vehicle history report. Taking the car to a mechanic can answer some questions regarding mechanical condition, but be prepared to explain why you are selling the car in the first place. If you don’t have a good answer or explanation in advance, you may scare away a potential buyer.
There may be a request for a test drive. If you choose to ride along and are concerned about social distancing and not spreading the Coronavirus, you can wear a mask, gloves and other personal protection equipment (PPE). It may not be fashionable, but it’s the world we are currently living in. You may also want to wait to set up a test drive of your vehicle until any local COVID-19 ordinances expire or when health officials advise that social distancing measures are no longer necessary.
8. Be willing to negotiate
Everything in life has a price, but it is best not to be totally in love with your car. That way, you won’t let a couple of hundred dollars potentially kill a sale. By now, you know what it is worth. But buyers are still always looking for a bargain. Ask a few hundred dollars more than you expect, so there is a bit of wiggle room in the price. Don’t give away the store, but a bit of flexibility can lead to a quicker sale.
9. Earnest money
For a buyer who can’t immediately complete the deal, a deposit goes a long way towards making sure the buyer is serious about purchasing your vehicle. It is a sign the buyer is committed to going through with the deal and helps weed out all the lookie-loos who are perhaps interested but not serious about completing the transaction. For a lower-priced vehicle, in the sub-$10,000 range, $500 is an acceptable deposit. As the price climbs, you are perfectly entitled to asking for up to half the selling price. Ensure both you and the seller know the deposit is, or is not, refundable. A signed statement indicating this understanding, as well as a copy for both parties, is a good idea to avoid disputes later.
10. Payment options inspire confidence
There are a variety of modern payment options when selling a car. You can stick with the traditional forms, including cash or a cashier’s check, but a proliferation of electronic payment systems helps inspire confidence in today’s car-selling world. Sites like PayPal, Square, and Venmo help you receive payment quickly from a private buyer. They also help to protect the buyer and seller with digital proof of the transaction.
You’ll also need to transfer ownership, which can be as simple as signing the title in some states, assuming you have possession of the title with no liens or other factors involved. If the car isn’t paid off, or if you live in a state requiring additional documentation when a car changes ownership, you’ll need to prepare for that ahead of time. The last thing a buyer wants is a long, belabored process when they are ready to pay and take possession of their new car. If you make the transaction easy for both you and the buyer everyone benefits.
