by Andrew Rohrlich
Are you trying to sell your car to a private party? You've probably already had several callers who seemed interested, but then never responded or showed up to a scheduled appointment. You may have gotten pretty far in the process only for your buyer to back out at the last minute.
Private party car sales can take a lot of time and effort, and may even cause frustration.
So you may wonder what's the best way to sell a car privately. Thankfully, there are several actionable steps used cars private sellers can take to avoid wasting time and make the car sale process much smoother.
Closing a Private Party Car Sale: Key Considerations
There are eight key considerations to keep in mind when closing a private party car sale:
- Confirm the potential buyer's personal details.
- Build your buyer's confidence in you and your vehicle.
- Fully disclose any potential issues.
- Provide maintenance records and vehicle history report.
- Prepare a detailed vehicle inspection.
- Be transparent about the vehicle's value during negotiations.
- Get your car cleaned and detailed before selling.
- Learn the post-closing steps.
Following these steps will save time, keep you safe, build buyer confidence, and help you close the deal smoothly.
1. Confirm the Prospective Buyer’s Personal Details
You may hear a lot about car sale scammers. But buyers can be scammers, too. The last thing you want to do is deal with people who are trying to pull a fast one on you. So it's important to protect yourself and screen potential buyers thoroughly before moving forward.
Come up with questions to ask the buyer, such as:
- What is their full name, phone number, and address?
- Where are they located?
- Do they want to see the vehicle in person?
- Do they already have financing in place for your proposed sale price?
This information ensures they are a real person and are genuinely interested in your vehicle. It also protects you from getting involved in dangerous schemes like overseas scams.
It's best to make a list of these questions for each buyer and record the information carefully. You'll avoid wasting time and keep yourself safe.
2. Build Buyer's Confidence in Both You and Your Vehicle
Purchasing a car privately can be a nerve-wracking experience for buyers, especially those who aren't sure where to buy used cars from private sellers safely. So you want to do all you can to build their confidence in you and your vehicle.
After you've verified your buyer's identity and interest, give them information about yourself. This can include your name, general location, and the reason you're selling the car. Be open and prompt with communication to build trust.
You may also offer your buyers a test drive once you've verified their personal details. It's best to meet in a public location and have someone with you during the test drive. You'll also want to check with your insurance company to see if test drivers are covered.
Let the potential buyer drive the vehicle around town and even on the highway so they can get a good feel for how it drives. This will also build their confidence that you're legit and that the car is in good driving condition.
3. Give Full Disclosure if You're Aware of a Potential Issue
Always give full disclosure if you're aware of any potential issues, no matter how minor they may seem.
Do the brakes need to be changed soon? Have the windshield wipers seen better days? Let your buyer know.
4. Provide Maintenance Records and Vehicle History Report
Once you've got your preliminary steps complete, you may wonder: What paperwork do I need to sell my car privately? There are two sets of papers you need to have ready for your buyer — maintenance records and the vehicle history report.
Maintenance records provide important information about vehicle upkeep. It's always best to be thorough with maintenance records and include items such as:
- Your vehicle's make, model, vehicle identification number (VIN), and insurance information
- Oil changes
- Fluid, brake, and air and fuel filter replacements
- Tire information
- Accident reports
- Receipts for all work completed
The motor vehicle history report provides detailed information about your car's title status, owner and accident history, mileage, and more. These two items together paint a full picture of your car's current condition. This can go a long way to convincing your buyer to transact on your car.
5. Prepare a Detailed Vehicle Inspection
A complete vehicle inspection involves a technician checking your car inside and out, from bumper to bumper. You'll receive a vehicle inspection report, which will detail the status of your car's components.
While this isn't mandatory, it can instill confidence in your buyers. They'll know that they're not buying a seemingly good car that's actually a lemon, which is one reason many decide to buy from licensed dealers instead of private parties.
Anything that makes your sale easier can only be a good thing, so it may be worth it to get a vehicle inspection.
6. Be Transparent About the Vehicle's Value During Negotiations
Transparency is important in private party car sales, especially when you start talking numbers. In today's technological age, it's easy for buyers to do a quick online search to check the value of vehicles. If you try to oversell your car or are cagey during the sales process, you could lose the sale.
So always be transparent about your vehicle's value. Show that you've done research into a reasonable purchase price depending on its:
- Make
- Model
- Manufacturing year
- Any aesthetic, physical, or mechanical issues
As well, if you have any modifications that you’ve made to the car (like a set of aftermarket wheels) this would be the time to disclose those changes.
7. Get Your Car Cleaned and Detailed Before Selling
First impressions are important, so you're unlikely to sell if your car is dirty and cluttered with junk. It's best to invest in car cleaning and detailing before you take pictures or put it up for sale.
Remove all personal items and junk from the car, including the trunk. You may want to leave accessories that came with the car when you purchased it, such as:
- Vehicle manuals
- Spare tire and jack
- Floor mats
You can clean the car yourself or take it to a professional to have the interior and exterior cleaned.
A clean car allows the buyer to see exactly what they're getting, including any cosmetic damages. It also gives the impression that you took good care of the car, which will improve the buyer's perception of its value.
8. Know the Post-Closing Steps
So you followed the above seven steps and successfully sold your car. Congratulations!
But now what? There are several post-closing steps to follow for a smooth transaction.
Title Transfer and Registration
Each state has different rules and regulations for transferring a vehicle title, so be sure to check your local DMV to get the correct details. Most states require both you and the buyer to fill out paperwork to make the transaction legal.
Typically, you would sign and date the back of the title, write the exact odometer reading, and add the sales price. It's always best to make a copy of both sides of the signed title for your records.
License Plates
In many states, it is advisable to remove your license plates from the vehicle at the time of sale to eliminate liability for the vehicle. It's best to inform your buyer so he or she can make arrangements for obtaining a license plate. Most states require that you cancel your vehicle registration by turning in the license plates to your local DMV and getting a receipt. In some circumstances, however, the license plates stay with the vehicle so make sure to check your state DMV website for more information.
Vehicle Delivery or Pick-Up
Once you close the sale, discuss how the buyer will get the vehicle. You can choose to deliver the vehicle yourself or have them pick the vehicle up. You want to be sure to set an exact time and location no matter which method you choose.
Payment Information and Taxes
Once you've agreed on a sales price, make sure you know how the buyer will pay you. There are several safe ways to collect payment during private sales:
- Cashier's checks
- Touchless online payments like Zelle, Venmo, or Paypal
- Cash
Get their payment information and receive payment before you hand them the title and keys to the car. The buyer will also need to pay title fees and transfer fees — which include state taxes — to transfer the vehicle in their name. So make sure they are aware of this and agree to pay these fees.
This article was written by Andrew Rohrlich. As a brand and product marketing expert, Andrew Rohrlich has crafted products, experiences and communications for household names like Gap and for multiple automotive technology businesses. For nearly a decade Andrew has studied automotive retail in depth from a customer point of view and aggregated the industry’s best research, thought leadership and know how to provide credible and important information to auto shoppers and sellers.
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