Selling Car How To Know Money Is Real

Used Cars are a Gold Mine. Learn how to Get the Highest Price for Yours

Aug 12, 2020 Bank Draft Payment Trick: How It Works (with video below) Imagine this scenario: you are about to sell your car for $10,000. After a few visitors who are interested in the vehicle but don’t buy it, you are happy to get a serious potential buyer finally. Find out what your car is worth at KBB.com, the Trusted Resource for used car values. Get the Kelley Blue Book Value for your used car or trade-in vehicle, find tools to help you with buying. Selling Your Car With Negative Equity. The process of selling your car privately when it’s upside down is essentially the same as if you had equity. There’s just one major difference: if the value of your vehicle is less than what you owe, you’re probably not going to get enough from the sale to cover the loan payoff.

1. The Basics

When selling a car, you generally have two options: sell to a private party or sell to a dealer.

Those who buy a new or used car from a dealer usually trade-in their current vehicle as part of the transaction - mainly because it's convenient and easy. But this convenience comes at a huge cost.

If you sell to a dealer, you're getting wholesale value for the vehicle, whereas if you sell to a private party, you're getting close to retail value. The difference can be several thousand dollars.

It seems like a no-brainer, so why doesn't everyone sell their vehicle to a private party? Well, because it takes more time and effort - plus some view it as risky to invite strangers over.

Despite these drawbacks, I highly recommend selling your car to a private party - especially if it has over 100,000 miles or been in an accident. You'll end up saving $100 to $350 per hour spent on the effort.

To help you decide, use the following pricing guides to determine what your car is currently worth.

Kelly Blue Book
Take these prices with a grain of salt, they're meant to be ballpark figures.

2. Selling to Private Party

There's huge demand for used cars today. If it's in good condition, you should have no problem selling it to a private party.

Why sell to a dealer who resells it for a $2,000 profit? Cut out the middle man and pocket the extra cash yourself. Seems simple but most people are too lazy or think it's too much of a hassle.

If you think it's too much hassle, consider this: selling your car to a dealer is no picnic either. In order to do it right, you need to take the vehicle to several dealers, have them appraise it, and negotiate with each one. At least with a private party sale, the buyers come to you.

Car

If you price the car realistically and promote it on the recommended classified sites, you should sell it quickly and easily. Just don't be too impatient - especially if your vehicle is not a popular model.

Cars.com
Has over 3 million cars listed for sale. Costs as little as $15 to add your car listing.
AutoTrader.com
Another huge site that has millions of used cars for sale. Listings start at $20
CraigsList
Contains the largest listing of cars for sale by owner. $5 to add a for-sale-by-owner ad (used to be free).
eBay Motors
Their local classifieds section will display your ad to anyone within a 200 mile radius of your location. (and it's free)

3. Selling to Dealer / Trading-In

If convenience and saving time is your top priority - and you don't mind losing out on a thousand dollars or more - then selling to a dealer is your best alternative.

But at least do it right!

By right, I mean shop your car to several dealers and have them compete to offer you the highest price. Don't just trade it in to the first dealer. It's basic supply and demand - make it work in your favor.

Dealers know most shoppers are clueless and don't take the time to do this. If you think you're going to get a good deal on your trade-in without shopping it around, you're crazy!

How

And yes, shopping it around means you have to physically take your car from dealer to dealer and have them appraise its value. Never trust an offer from a dealer who hasn't inspected your vehicle first-hand.

Furthermore, NEVER co-mingle the negotiation of your trade-in with a new car purchase. Keep everything separate or you'll fall into a common (and costly) dealer trap.

Step by Step Car Trade-In Guide
Although I recommend selling your car to a private party, if you insist on doing a trade-in, you might as well do it right. Follow these steps to maximize your savings.
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Unfortunately, some buyers have negative intentions which may leave you a victim of a scam. Because of this, you’ll want to be certain you are accepting a method of payment that keeps both you and your wallet safe even after you say good-bye to your car. The following are a few tips to protect yourself from scammers when privately selling your used car:

Cash Payments

When it comes to selling your car in San Diego, the phrase “Cash is king!” has never been truer.
In general, accepting cash for your car is by far the safest way to make sure you get the full, exact payment. But remember, if you accept cash from a buyer you’ll end up with hundred or even thousands of dollars in your wallet and you’ll need to get to the bank ASAP. It can be dangerous to walk around with all that money in your pocket! To be extra safe, you may want to meet the buyer at the bank so you can immediately put the cash into your account.

Selling

Personal and Cashier’s Checks

Selling Car How To Know Money Is Real Value

Like we mentioned, it’s pretty dangerous to walk around with your pockets full of large bills, and for that reason the buyer may choose to pay you in a personal or cashier’s check. Besides cash, a certified cashier’s check is the most secure way to accept payment during a private sale. Unfortunately, potential for fraud still exists. There is no guarantee that the buyer actually has the money in the account to cover the check, and you may find yourself in a situation with a bounced check. There’s a chance that a bank will not detect a fake cashier’s check until days or weeks after depositing it. By then, the buyer is long gone and you’re left with a huge financial problem. A bounced check from a buyer can leave you with multiple transaction fees. Just imagine, if you think you have thousands of dollars in your account after you cash the check and you start paying bills, then you, too, will have transaction errors and bounced checks. Of course, an even bigger kicker, you’ll have no money for your vehicle and no vehicle!

To be certain you don’t have to learn the hard way, you can schedule the transaction to occur at the buyer’s bank. That way, you’ll be right there as the check is prepared and you can be certain you aren’t getting scammed.

Escrow Payments

Another way to accept payment, yet less used, is buy having the buyer pay through an escrow account. However, if you choose to go this route be sure to select the service form a legitimate bank or attorney. Do not agree to an escrow service suggested by the buyer. Use the attorney or bank of your choice and have the buyer agree to your terms and conditions.

Just Say No to Payment Plans

Selling Car How To Know Money Is Real Estate

If your buyer asks for a payment plan, just say no! You should never agree to a payment plan. This is an automatic red flag. Although you want to sell your car quickly, there are plenty of other buyers out there and will do so honestly without scamming you.

Selling Car How To Know Money Is Really

Don’t Be Afraid to Walk Away

Selling Car How To Know Money Is Real Estate

After all that advertising, meeting with strangers, and multiple test drives, there’s no doubt you want to sell your car as soon as possible. Yet, don’t be afraid to walk away if your gut tells you something isn’t right. If you think you’re dealing with a scammer, you probably are. As a private seller, you should always be in control. If you’ve given the buyer numerous options and they still balk at all of them, then feel free to walk away. Void the agreement completely and move on to the next buyer. Trust your gut. If your buyer appears to have shady behavior, they probably are shady and untrustworthy.

Selling your car yourself is difficult so keep in mind all the factors before you even begin. The last thing you want to deal with are the shady buyers and scammers out there. Remember, you don’t have to sell your car to just anyone. There are plenty of people willing to buy your car, so do not settle for the first person – especially if they seem difficult or balk at your payment rules. Keep these tips in mind as you meet with buyers to be sure everything is legal and legitimate. Be sure you do your research and planning to keep everything safe and valid as there are many more nightmare scenarios that exist.

Payment represents on of the biggest risks when selling your car privately. However, there are other risks too. Check out our post Know the Risks When You Sell Your Car Privately to learn more tips for a safe transaction.

Selling Car How To Know Money Is Real Life

And, if you would rather bypass potentially shady buyers and doing all the legwork yourself, sell your used car to Driveo instead! We will take care of the sale with an easy and fast transaction. We are the best possible alternative to selling your car yourself because we offer more than trade in values and provide the same security and convenience as trading your car in. Forget the hassle and get more money and a secure payment the easy way. Learn more about how Driveo works.