Ways to sell a car

There are four ways you can sell your car, each with pros and cons. The best option for you depends on how keen you are to get the highest possible price.

Method	Advantages	Disadvantages
Private Sale	Can usually get the best price	Taking phone calls  Negotiating face to face  'No shows'  Home phone number and car details are published
Auction	Usually fast & easy   No negotiating with buyers or sellers	You won't get your best price  You're charged an entry fee  There's commission payable on sale price to the auction house
Trade-in	Generally fast & easy	A dealer won't give you what you could sell it for privately
Consignment	It's sold for you	You won't get the best price as the seller takes a cut

Private Sale

Usually gets you the highest price for your car but can take time, effort and advertising expense. Give yourself the best chance of selling - check out our common terms before you place your ad.

Tip: Make sure you get prospective buyers' names and phone numbers and try to get a definite day and time when they're coming to inspect. 'No shows' are part of the frustration of selling privately so being able to contact a prospective buyer can save a lot of wasted time.

When a prospective buyer turns up

• greet them by name 
• stand back and let them look over the car 
• invite a friend to help if you feel 'out of your depth' 
• make sure your car's insurance covers a buyer taking it for a test drive, and always accompany them 
• accommodate a pre-purchase inspection 
• have your 'pink slip' available (remember it can't be more than 42 days old at the sale date). 

Negotiating the sale

• keep the buyer uncertain 
• listen to the list of 'faults' they've found - don't be bullied - stand your ground if you believe they're unreasonable 
• be prepared to haggle but know your limit and stick to it.

Sealing the deal

Put your agreed deal in writing - including 

• deposit amount and terms   
• final method of payment 
• a bank cheque is the safest payment method 
• if an inspection or repairs are to be done 
• date the buyer will collect the car 
• both parties sign and date the agreement 
• give the buyer a receipt for the deposit, including the date and time of pick up.

Auction

If your old car is in poor but roadworthy condition, consider selling it at auction. You might not get much for it, but probably more than you'll get from a scrapyard. Generally it's a fast and easy way to sell your car, without the hassles of waiting around for private buyers or negotiating with dealers. When selling at auction you are required to provide: 

• proof of ownership - registration papers 
• 'pink slip' proving roadworthiness

Auction houses charge varying fees for selling your car. Most will charge an entry fee plus a commission on the sale. Commission rates can be a flat fee or a sliding scale of the sale price. Most auction houses conduct their own title search, passing the cost on to the seller.  

Trade In

A trade-in removes the effort of selling your car privately, but you probably won't get as much for it. However, on the up side, the car you buy will probably have a warranty. Trade-ins can be confusing. For example, the amount offered for your old car could include a discount on the car you're buying.

Ask the dealer to give you the total changeover price - how much you'll pay to leave your old car and drive away in a new one. When all is said and done, that's the only figure that matters.

Ignore dealers' negative comments, such as: "nobody wants to buy that model anymore" or "your car isn't in very good condition". These are often just sales techniques to get you to accept a lower offer.

The trade-in value of your car may only be valid for a certain time (e.g., 28 days). Check if the trade-in will be revalued if the dealer can't deliver your new car in that time.

You could - if you have time - get a trade-in price from the dealer, then try to sell it privately for more. You might have to wait a few extra weeks to get your new car but you'll keep the dealer's profit margin for yourself.

Consignment

Consignment means giving your car to someone else (eg, a dealer or consignment centre) to sell for you. You set the lowest (reserve) price you'll accept, and they add on a profit margin for themselves. You need to have a contract with the person selling your car. It should state the reserve price, all expenses, and any special conditions. Make sure you can still sell it privately while it's on consignment without incurring a penalty. Ensure the company is trustworthy, and will pay you quickly when your car is sold.

Some questions to ask: 

• Are you a Licensed Motor Dealer? 
• What is your licence number? 
• How long have you had your licence? 
• When is your licence due for renewal?
• What is your business name (if different from trading name)?

Once the vehicle is sold

Documentation

When a used car changes hands, the registration has to be transferred from the seller to the buyer. Make sure your documents are in order for a smooth transfer.

NSW
It's the buyer's responsibility to make sure the registration is transferred according to the law. But don't rely on this! Make sure you fill out the seller's disposal notice and submit it to the RTA as soon as possible. Ask the RTA for a stamped photocopy. If the new owner doesn't transfer the registration and gets a traffic fine, you then have proof you are no longer the owner.

The seller must provide the buyer with:

• the current certificate of registration, signed in the appropriate place as 'the disposer' 
• a roadworthiness inspection report (pink slip) not more than 42 days old at date of sale

The seller is then required to:

• complete, tear off and send the 'Notice of Disposal' section of the car's Certificate of Registration to the nearest Motor Registry.
• The buyer must, within 14 days of purchase date, provide in person at the nearest Motor Registry: 
• proof of identity 
• an 'Application for Transfer of Registration' form
• the Certificate of Registration 
• the roadworthiness inspection report (pink slip)
• transfer and stamp duty fees

ACT
The seller must providethe buyer with:

• the signed, current registration certificate

The buyer must, within 14 days, provide in person:

• a passed, vehicle inspection report, if the car is more than six years old
• the signed, current registration certificate 
• a current ACT photo licence or primary and secondary proof of identity 
• proof that the car is normally kept in the ACT. 

Issuing a receipt

Save time and print out our used car sellers' receipt (PDF 157KB/1 page). Simply fill in the appropriate details.

For more information call NRMA Motoring Advice on 13 11 22.