A significant part of the motor trade industry involves buying and selling cars. There are hundreds if not thousands of models to choose from that come in various sizes and colours, each with their own unique style. There are many different ways to buy and sell vehicles, in this simple guide, we’ll be focusing on the range of ways private individuals and established dealers can sell cars.
As a private individual, it’s relatively straightforward to sell your own vehicle and you won’t need any special permissions. However, those that do this as their profession will need the right motor trade insurance cover. Cover can range in price and features; this is why it’s a great idea to use an online comparisons site such as Utility Saving Expert to find the most competitive policy. It only takes around 10 minutes to obtain a free no obligation quote. They also have an in-depth guide and answers to the most frequently asked questions to help you make the right purchase decision. Let’s look at the different ways you can sell your car.
If you are buying another vehicle from the same manufacturer, or your car is just a few years old, part exchanging could be the easiest option for you. Dealers with franchises will generally be happy to take on high quality used cars for their forecourt. Although, most will have a preference towards models from the same brands they sell as new. Independent dealers will normally take on most cars that are in excellent condition when part exchanging.
The ‘price to change’ should be a key focus if you decide to part exchange – this will be the difference between the part-exchange offer on your existing vehicle and the price of the new model, instead of the individual values of each. Dealers can offset discounts on the new vehicle against a lower valuation on your existing one. This is done to encourage you to buy the new car closer to the retail price.
However, it’s worth remembering that most dealers will want to make a profit on any used car they buy from you. This means the part-exchange price will not likely be the maximum you can receive from selling privately. Although, this method offers much more convenience.
Selling to a dealer
Cars that are relatively new with low mileage and a model that attracts a lot of demand in the used car market will be very appealing to both independent and franchised dealers. Those that specialise in that type of vehicle will want to purchase it from you outright. Smaller local traders also value cars that are well looked after, especially if it’s a vehicle they know they can get a quick turnaround on. This option is very lucrative and straightforward.
Private classified adverts
A popular method to selling used cars is by using classified ads. This traditional way takes advantage of online websites and newspapers – both the new and old ways of selling. If you have a classic, sports or high-performance vehicle, you’ll want to target advertising in a related website or magazine. If the vehicle has a really low value, selling locally may be the easier option.
Your ad should accurately describe the vehicle and provide all the necessary information that buyers will want to know such as age, model, specification, length of MOT and service history.
Selling at auction
Putting your car up for auction means you will generally get a lower price and there is no guarantee of a sale. This method will require you to pay an entry fee and set a reserve price. If the bids don’t meet the reserve price, you will have to take your vehicle home and possibly try your luck next time. Auction companies will pay you promptly but will deduct their commission before doing so.
eBay is one of the most popular online auction websites where you can reach buyers from all over the UK. It’s a great place to buy and sell used cars of all ages and types. You will have to pay a small listing fee and will have the option of setting a reserve price. eBay also has a ‘buy it now’ option where buyers can purchase for a fixed price rather than go through auction. Ensure the car is accurately listed and provide honest descriptions. Those who are bidding will also be able to ask you questions through the messaging system. As many buyers will be purchasing a vehicle they haven’t seen in person, don’t expect to sell for a high price. Avoid bidders with no history and feedback.
Online car buying services
Over the past two decades a number of companies offer to buy your car. You’ll enter a few basic details about your car and get a valuation. After this, you will take it to a local deposit for assessment. This is relatively straightforward; however, this method will often give you the lowest amount for your vehicle. Often these online valuations will be provisional and upon inspection, they will reduce this further.
In summary, these are the most popular routes to take when selling your car. Each has its own advantages and disadvantages. Some will give you a better return but may require a little extra effort on your part.