Do you plan to sell your car? Here you can learn the different options and ways you can do so and how each might affect the price you’ll get. And don’t miss our tips about the ideal timing for selling your vehicle and what to do if there’s still outstanding finance.
What’s your car worth?
The first step to sell your car is working out how much your car might be worth.
It’s important to remember these are only estimations and there are a variety of other factors that might affect the value. For instance, any damage, the condition of the tires, the service record and the length of time left in the test.
There are also other factors that you must take into consideration when making a decision on the value of your car.
In this case, it could take longer to negotiate the most affordable price for your car. If you’re in need of money quickly, you might think about selling your car at less.
Choosing the best way to sell your car
There are several possible ways to sell your car. The best option is based on the amount you’d like to receive for the vehicle and how long you’re willing to spend on the car, and whether or not you’d like to get another car.
Selling privately means you might make more than you can from a dealer. But might be time consuming.
If you’re looking to purchase a car straight away, part exchange with a dealer possible.
If your car was worth £5,500 privately, you may lose at least £500 when you sell it to an agent.
selling a car to an individual dealer
If you’re looking to purchase a vehicle immediately, the option of part exchange with a dealer may be the best option.
You’ll probably get less for it than private sales, but you’ll save the hassle and expense of advertising , and handling inquiries, viewings and test drives.
The value of the car’s part-exchange will be a little more than the amount you’d receive if you sell the car directly to an individual dealer.
However, the dealer might not be willing to talk over a part-exchange price.
If you don’t need a new car right away however, you may be capable of selling directly to the dealer. While this might be quick however, you’re not likely to receive the most competitive price.
Selling a car privately
Selling your car privately can be time-consuming, however, you could end up getting a better price.
Here’s what you’ll have to complete:
Advertising your car to potential buyers – for example, an ‘For Sale’ sign on the windows of your car or shop or classified ads in local papers or on websites like Gumtree, PistonHeads, AutoTrader and Motors Or, you might be able find someone who is interested in buying your car from the friends of your friends, or on social media sites like Facebook, or even at work.
Be sure that you describe your vehicle correctly in your advertisement , and you are able to prove that you’re the legally owned.
Answer promptly any email or calls from prospective buyers.
Set up and attend the viewings as well as test-drives.
Arrange a safe way of getting paid for the sale.
Car buying websites on the internet
There are numerous online car buying sites which will eliminate the hassle of selling your vehicle. Enter the details of your car on the site of the company, including mileage and age to get a valuation and then take it to the nearest depot to be evaluated.
However, Which? declares “You’re most likely to receive an increase in price when selling the caror taking it to auction. In our research undercover, we discovered in the five cases of our mystery shoppers would be better off selling to dealers – in one instance, by more than £2,000.”
If you do choose selling your vehicle on the internet, be aware that typically the online valuation is subject to a physical inspection of your car. If the inspection uncovers flaws, the final figure might be lower. Also, you may have to pay an administration fee for the inspection.
Car auctions can be a good way to sell your vehicle
Auctioning a car can be quick and relatively hassle-free.
However, there’s no guarantee that your car will go over its reserve value, and you might end up getting less than what you could get through other methods of selling it. If it fails to meet your reserve price then you’ll need to bring the car home and attempt again at a different time.
Most auction buyers are involved in the motor trade. If you’re lucky and attract a private buyer then they may be willing to pay more for your car than a dealer.
The largest auction houses for cars like British Car Auctions and Manheim have branches across the nation However, you might find it easier to use an independent auctioneer who is closer to you.
You could also check out auction sites online like eBay, but you’ll have to complete a lot of the work involved in creating the advertisement and answering questions. If your vehicle is sold and the bidder who wins pays for it in a matter of minutes and the auction firm will pay you the price of the sale minus its commission. This could be up to 10% of selling price.
What can I do to get rid of my car if it has outstanding finance?
If you’re selling a car with finance still outstanding there are two steps you need to do before you are able to legally transfer it to a buyer:
Inform the finance company and request the “settlement amount” they’ll require from you to cover the loan completely.
Repay the amount of the settlement with any late cost of repayment as well as any administration fee the lender might charge.
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However even if you pay off your loan early might result in a lower cost than what your other payments would have.
Be aware that it’s often challenging to market a vehicle with outstanding finance.
The finance company will have registered your car on HPI and Experian databases. HPI as well as the Experian databases when you took out the finance plan.
Before purchasing a car used dealers, dealers and even private buyers check these databases to ensure there’s not a loan outstanding on the vehicle.
You can have a car history or data test with HPI Check, the AA, RAC, HPI Check as well as other companies for about £20.
Can I part-exchange my car with outstanding finance?
Similar principles apply when selling a vehicle with outstanding finance.
Contact the finance company to obtain the “settlement amount” and pay this along with any fees and costs for administration prior to part-exchanging.
Remember that most dealers will be looking to earn money in the event that they resell your vehicle So the price you pay for part-exchange could be lower than the price you’d be able to get selling privately. It’s much easier and faster to trade in your vehicle than to list, do viewings and test drives to sell a vehicle by yourself.
Refund your vehicle tax receive an amount back
Sellers and buyers can no more transfer taxes that are already in place after the sale of a vehicle.
In the end, you’ll need to tax the car yourself . the previous owner may request an exemption.
But, new tax has been retroactively dated to the beginning of the month and refunds begin at the beginning of the next month.
This means if you decide to sell your car early in the month, you’ll be paying tax twice.
If you submit an application in the form of SORN (Statutory Off Road Notification) before the end of the month, you will be able to avoid paying tax on your existing car.
You’ll also be subject to the cost of a fine should you use roads that are not taxed. This can be a problem for buyers to test drive your car.
The disposal of your vehicle
If your car is reaching it’s end life and it is no longer economically viable to maintain, consider the possibility of donating it to a charity or scrapping it.
Negotiating when selling your car
If you’re selling your car either privately or through a dealership, the buyer may wish to negotiate over the price. Don’t let yourself be caught off guard – read our negotiation tips below so you know how to use to maximize the value of your vehicle without losing the sale.
Don’t fall for scams by buyers
Selling your car privately can expose you to thieves posing as buyers.
Here are some recent scams worth being watchful for:
Someone pretending to be a car exporter who requests you to transfer “shipping costs to buyers from overseas.
Phishing emails from bogus car buying and selling websites asking for login details and payment information for your card.
Text messages that express the desire to purchase your vehicle only to be charged a higher price if you choose to respond via phone or text.
A customer who pays by cheque and gets the car before the cheque is cleared, however, the cheque bounces few days later as it is a forgery or fake
A person who offers to purchase your car unseen who pays the full amount via PayPal. Then, you’re told you’ve been overpaid, and are required to repay the difference by using another online payment method. In the process the fraudster arranges the original PayPal transaction to be reversed. You have to pay back the money that you’returned’.
After you have sold your car
When you’ve sold your vehicle it is important to notify the DVLA you’re no longer the owner.
You , along with the person you’re selling to, must be able to sign and date the appropriate part in the V5C and then send this to DVLA.
Make sure to pay off any outstanding finance remaining on your vehicle as well as to inform your insurer be aware that you’ve sold the vehicle.
How do I dispose of an old vehicle
There comes a point with every vehicle that is not practical or safe to prolong its life. Additionally, if it’s not roadworthy you might be liable for points on your driving license or a fine. If your vehicle is reaching the point of no return take a look at this article to find out how you can dispose of it.
If you choose to sell your car there are a few things to consider before you get started.
Take the paperwork out. When a car is disposed of, and the Driver and Vehicle Licensing Agency (DVLA) is required to be notified via a Certificate of Destruction (CoD). The CoD can only be issued from scrap car recycling centres also known as Authorised Treatment Facilities (ATFs). If you don’t, then you’re still responsible for the vehicle and could be fined.
Keep your personal details safe. Customers from England and Wales have to prove their identity when selling their vehicle for scrap. The buyer will be required to present photo ID and evidence of your address, such as the utility bill. Your personal information will be retained for three years, so you need to make sure you’re sharing it with a reputable organisation.
Reclaim insurance and tax. If you’ve had your car destroyed at an ATF and the CoD has been issued then the DVLA will reimburse you for the full months of the remaining car tax (officially known as VED but is often referred to as road tax). Also, you should inform your insurance provider and ask for a reimbursement, or put any credit towards another insurance policy.
Scrapping the car
The majority of people decide to scrap their cars when they fail to start, fail a MoT or require costly repairs, or if they’re unable to find buyers.
Scrapping your car is an option you consider if it’s damaged beyond repair, or you can’t find anyone prepared to purchase it.
Be aware that, unless your car is in a state of total destruction It could still be worth something, which is why you shouldn’t have to pay to get it towed away.
Bear in mind, the recycler of your vehicle (otherwise called a scrapyard, breaker or dismantler) might earn hundreds of pounds from your scrap metal simply by selling a few of its components, even though your vehicle isn’t more valuable than your scrap scrap.
If you decide to keep your car the car needs to be taken to the ATF to be taken away for scrapping.
You’ll then be sent a CoD.
It is illegal to scrap your vehicle in any other place.
Scrapping your car can ensure it’s properly recycled , without causing damage to the environment.
The prices for scrap cars fluctuate, based on the car’s model as well as the area it’s located in, whether or not it’s got any parts that can be re-sold and the current market prices.
Rewarding Recycling and CarTakeBack are the official recycling partners of some of the major motor manufacturers.
All their scrap car recycling centers have ATF licences.
You can also deliver directly to an ATF If you’d prefer.
Donate your old car to a charity
If the car you have doesn’t have much value or you don’t have the time to make arrangements for selling it, why not donate it to Charitycar
They’ll pick it up at no cost and you’ll enjoy the satisfaction of knowing your car’s value is going to the charity you choose.
You can also think about giving away your car via Giveacar
If you decide to donate your car that you no longer use, it will either be sold at auction or taken away for scrap.