3 Steps to Selling Your Car...

3 Steps to Selling Your Car

Here are 3 simple steps that will help you turn your used car into cash.

1. Know the market

Is your car going to be easy to sell? Is it a hot commodity? Or will you have to drop your price and search out additional avenues to sell it?

Here are a few general rules to answer these questions:

* Family sedans, while unexciting to many, are in constant demand by people needing basic, inexpensive transportation.

* The sale of convertibles and sports cars is seasonal. Sunny weather brings out the buyers. Fall and winter months will be slow.

* Trucks and vans, used for work, are steady sellers and command competitive prices. Don't underestimate their value.

* Collector cars will take longer to sell and are often difficult to price. However, these cars can have unexpected value if you find the right buyer.

Your first step is to check on-line classified ads to see how much others are asking for your type of car. Edmunds.com and other Internet sites allow you to search with specific criteria. For example, select the year and trim level of your car and see how many similar cars are currently on the market. Take note of their condition, mileage, geographic location and selling price so you can list your car at a price that will sell it quickly.

2. Price Your Car Competitively

Once you have surveyed the on-line classified ads, use Edmunds.com True Market Value (TMV®) pricing to determine the fair value of your car. Edmunds.com TMV prices are adjusted for mileage, color, region, options and condition. Once you have followed the prompts and gotten a specific price, you can also generate a "For Sale" sign. An Edmunds.com "For Sale" sign will give your price an air of authority.

There are always some exceptions to the rules of pricing, so you should follow your intuition. And be sure to leave a little wiggle room in your asking price. Ask for slightly more money than you are actually willing to accept. If you want to get $12,000 for the car, you should list the car at $12,500. That way, if you get $12,500 — great! But if you have to go lower, it won't be a terrible loss.

You may have noticed how creative used car dealers get in pricing cars. Their prices usually end in "995," as in $12,995. Are we not supposed to notice that the car basically costs $13,000? There is a lot of psychology in setting prices. A product that doesn't sell well at $20 might jump off the shelf at $19.95.

On the other hand, as a private party seller, you don't want to look like a car dealer. Therefore, you might want to take a simple approach and set your price at a round figure such as $12,750 or $12,500.

3. Where to Advertise Your Car

Now that your car is looking great and running well, it's time to advertise it for sale. Traditionally, people advertise in newspaper classified ads. These ads can be expensive, but they get results. On-line classified ads, such as the Edmunds.com Used Vehicle Locator, are becoming increasingly popular. On-line ads are particularly effective with hard-to-find or collector cars. In most cases, on-line classifieds reach a geographically wider area of buyers.

Here are the main markets for advertising used cars:

* On-line classified ads such as those on Edmunds.com

* Daily newspaper classified ads

* Weekly "shoppers" and giveaway newspapers

* Bulletin boards at your office, a local supermarket or a college campus

* Word of mouth — tell your friends and family you have a car for sale

* Put a "For Sale" sign in the car window

Creativity is required when it comes to advertising. Think of unusual places to put ads (skywriting is probably too expensive), and you will get results.

One last word of advice about advertising: if you run an expensive classified ad, be sure you are available to take phone calls from possible buyers. Many people won't leave a message for a return call. So answer the phone — and be polite. Creating a good first impression is the first step to getting buyers to come and see the car in person.

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