Selling Your Car Privately: Seven Must-Know Steps

It's time to sell your car. Rather than trading in your car to a dealer, you instead are giving strong consideration to selling your car privately. The following are seven must-know steps to follow when you are selling your car privately.

Selling Your Car Privately step # 1. Determine your vehicle's worth, which is easy to do. Check out some websites, such as Kelly Blue Book, for the fair market value. Take an honest look at your vehicle and decide which category it falls into: excellent, good, or fair condition. Give consideration to whether your vehicle has extras like a sunroof or leather seats. These will add value. Then determine a price that you feel is appropriate.

Selling Your Car Privately step # 2. The next step is advertising. If you don't need to sell your vehicle on a rush basis, try a free website for advertising. For example, Craigslist is a good start. There are some other websites that require an advertisement fee, which are quality sources, but if you can sell your car with little or no expense, that's the way to go. Try free first.

Selling Your Car Privately step # 3. You receive a phone call and a prospective buyer is interested in looking at your car. Decide beforehand whether you will meet the prospective buyer in a public place like a mall. Remember, you are the seller and you control this transaction. You do not have to give out your address.

Selling Your Car Privately step # 4. If the buyer likes the car, the buyer will probably want to take it for a test drive. If you do not go with the buyer, then you will be worried that the car may not be returned. Consider test driving the vehicle with the buyer. If you have a friend or spouse, have that person trail behind you in another car. This is a good safety precaution.

Selling Your Car Privately step # 5. The buyer wants to purchase your vehicle. Although it isn't required, consider drafting a Bill of Sale. This is a written agreement for the purchase of your car between you and the buyer. It can be simple and straightforward, limited to one page. There are legal websites that offer these forms, but most if not all, require a fee to gain access to them. This is another expense you may be able to avoid. If possible, find one that is formatted already as a template. Then type the language into your own document. If necessary, consult an attorney for guidance.

Selling Your Car Privately step # 6. You will need to transfer title of the vehicle to the buyer. Consult your state's regulations. In Pennsylvania, for example, there are established places that specialize in transferring title and notaries. Make sure any liens on the vehicle are addressed. The buyer should be made responsible for any title fees.

Selling Your Car Privately step # 7. During the transfer of title, you will need to decide the form of payment. Cash is king, but sometimes transactions are too big. If the buyer will pay by certified check, if possible, meet at the buyer's bank so you can witness that the certified check is actually being drawn.

When selling your car privately, remember you control the transaction. Your safety is the number one priority in selling your car privately, and if planned effectively, you can make selling your car privately a smooth transaction.