SELLING YOUR VEHICLE YOURSELF
HOW YOU CAN SELL YOUR CAR
There are two established methods of selling your car. You can deal with the sale yourself and advertise privately or you can sell it on to a dealer. Each has its own pitfalls that you should be aware of.
SELLING TO A DEALER
If you have a part exchange then selling to a dealer has its advantages in that the sale can be quick and painless with minimum hassle, and furthermore no ongoing legal responsibility for the condition of the car. However, you may not achieve the best price as the dealer will want to buy at TRADE price in order to have a margin when they resell at RETAIL price.
Even then, if the car is a different Marque you may not even get the TRADE price as the dealer may have an agreement with the manufacturer or their own policy to only have stock of that brand on sale. In this instance the dealer will sell on your car to another trader and you are paying for all the profit!
Often sellers don’t think the dealer is really offering the right price for their vehicle and may also find the process of the dealer explaining all the faults they can find with the vehicle to justify a lower price an insult. If your vehicle is on finance you may also owe more than you are being offered and therefore have ‘negative equity’.
The Race Car Centre specialises in purchasing your car at a realistic agreed value and remember that is based on the RETAIL price not the TRADE price.
Many sellers believe that they will get more money from a private sale. But the process is far from easy and the following are some of the potential problems which often occur with a private sale. We don’t want to frighten you in any way just alert you.
As a private seller, you are unable to offer the reassurance of a purchase from a dealer, this is fine if you are selling a car for £1000, but if your car is worth £100,000 would you arrive at a stranger’s house and pay that to buy your next car? A dealer can offer servicing, finance packages and warranties to a purchaser and additionally a buyer generally has more confidence as they have much greater legal protection. Result, you are unlikely to achieve the best price.
Next there are the advertising costs, they may be cheap to start with but with more prestigious vehicles these can spiral over time due to lack of interest.
Timewasters. You make an appointment to view, if they bother to turn up they may just be tyre kickers or even just fancy a drive in a sports car they could never afford at your risk and a complete waste of your time.
Do you know who is coming to view your car at your home? Would you usually invite them to visit you? A complete stranger or maybe two turn up, in the evening at your home to look at your car, just how uncomfortable will you feel?
Even though you may believe that a buyer has no comeback against a seller in a private purchase, that is not correct. The courts can still hold you liable to the purchaser.
It is highly unlikely that your insurance will cover this stranger to drive your car and in many cases the potential buyer does not have suitable insurance for your performance car. In most cases, they will only have third party cover and that third party is not you. So, someone unexperienced in driving a high-performance car may crash it, even if you are not injured you will almost certainly have lost financially.
Scams. Where do we start? Counterfeit notes and banker’s drafts, card fraud and internet banking. Your buyer may be a professional criminal and by the time you discover that you have been scammed your car is already out of the country.
Carjacking theft; you are on a test drive with a stranger. You have absolutely no idea how that could end?
Without keys, many modern cars are very difficult to steal due to sophisticated immobiliser technology. They are not interested in your car at all, there has been an increase in aggravated house burglaries. The “buyer” knows your address, your car, they may have even checked out your house security when they asked “Can I just use your loo?”
eBay, really? Great for a bargain but not the right market for prestige vehicles.
HOW DO BUYERS BUY A CAR?
A survey by the Motor Industry Association shows that only 8% of buyers have cash available with no requirement for a part exchange. In the prestige market the figure may be even less.
92% of buyers either have a part exchange or require some element of finance, selling privately is therefore limiting severely your available opportunities even if you can put up with the multitude of issues we have mentioned.
72% of those surveyed said that warranty and dealer backup were very important factors to them when choosing a vehicle.
In the UK in 2016 over 1.3 million used cars were purchased from dealers using finance packages
The graph opposite illustrates how buyers purchase in the used car market.