Buying and Selling Cars Tips
From Adviceopedia
The following buying and selling cars tips are designed to make the process run smoothly. Most of us are not involved with these types of transactions on a regular basis, and it's important to have a plan of action.
Buying and Selling Cars Tips and Advice
Decide What Type of Car You Can Afford
The first step in buying a car is to take a look at your financial situation and determine how much you can afford to spend. Then you can start to look at cars in your price range.
Check Your Credit Score
If you are going to attempt to arrange financing for your purchase, you need to know your credit score. A higher number means that you may be able to get a better interest rate on a loan.
Research Alternate Financing Sources
A dealer can offer you financing for your new vehicle, but he is not the only lender who will work with you. Certain finance companies specialize in auto loans.
Another option is to discuss your financing needs with your bank.
Trade In or Sell Privately?
The next thing you need to think about is whether to trade in your existing vehicle or sell it privately. Trading it in is quicker and easier but you will probably get a better price if you decide to sell it privately.
Set an Asking Price for Your Car
You want to get a good price for your existing vehicle, but you don't want to set the asking price so high that you won't get any offers for it. Check out Kelley Blue Book and classified ads (either online or in print) for vehicles similar to yours to determine what a fair asking price would be.
Clean Your Vehicle Thoroughly
Make sure your vehicle has been throughly cleaned inside and out before showing it to a potential buyer. Rust spots and scratches should be covered with matching paint. Don't forget to clean the windows.
For the interior, use a spray cleaner (409 or a similar product) on the vinyl. Vacuum the floors and trunk. A carpet and upholstery shampoo may be used on the seats. If the upholstery isn't in good shape, it pays in cover them with inexpensive seat covers.
Having your vehicle detailed can help you receive more money for your car.
Place a Classified Ad
It's a good idea to contact the newspaper or website where your ad will run to find out how many characters or lines you get for a particular rate. Armed with this information, you can start to write your ad. It may take several drafts before you get the text down to fit the number of lines or characters you have been given.
Be sure your ad includes such basic information as:
- Make and model
- Model year
- Vehicle condition
- Asking price
- Your contact information (phone and/or e-mail address)
Utilize Free Advertising
Place a sign in the window of your vehicle so everyone knows it is for sale. You may also choose to park your vehicle in a high-traffic location where it is easily visible to drive-by potential customers. Just make sure there are no laws in your area against this to avoid a costly tow bill.
Include the price and your phone number on the sign.
Cash Only
When you do find a buyer, complete the transaction on a cash basis - no personal checks. This is one of the buying and selling cars tips that applies whether you are a buyer or a seller.
If the buyer insists on writing you a check, ask them for a cashier's check instead.
All Sales Are Final
Give the buyer a receipt for his or her purchase. Include a statement indicating that the vehicle is being sold "As Is" and all sales are final. The seller is not responsible for any future repairs the vehicle may require.
If you are the buyer, ask for a receipt indicating you purchased the vehicle and do not owe the seller any money.
