Web Tips

How to sell your car yourself & get top dollar

When you buy your next car, you might think about trading your older one in to a dealership. While this is convenient, and may be the best option for you, it can be more lucrative to sell your car as a private party. Using the same process and techniques that dealerships use to sell cars, you can make sure you get top dollar for your investment!

In Parts 1, 2, 3, and 4 we talked about how to get your car in tip-top selling condition, getting your information organized and ready, taking great photos, and researching and setting a price! In Part 5, the final piece, we’ll talk about writing a great description and advertising your car.

Write a Good Description

You should write your description as if you were having a conversation with the person reading it. The best descriptions are friendly, yet thorough.

• Detail all of the in formation you gathered in Part 2, including the basic information (mileage, transmission, engine).
• Note what features and options your car has, including any aftermarket/non-factory ones.

Think about who will want your car. Use this to build a headline or summary, like one of the following:

• Is it a little older, with higher miles? Is it a small car? “Perfect first car!”
• Is it a minivan or SUV? “Perfect for a family!”
• Does it need a little work? “Great for someone mechanically inclined!”

Some questions to consider answering:

• Why are you selling the car? Are you replacing your sports car with a minivan because you’re starting a family? Are you replacing your pick-up or SUV with a smaller car because you recently got a new job with a long commute and you need better gas mileage? Did you get a great deal on your dream car? Are you moving? Did you recently get a company car? If you have a reason like this, note it. It builds confidence in your buyer that they’re not getting a lemon.
• Is the mileage low relative to other cars of the same year?
• Were you meticulous about servicing it and doing regular maintenance? This is a good thing to mention, especially if you have the service records to show to a buyer.
• Are you more concerned about getting cash as soon as possible? You might wish to note that you will take reasonable offers because you need the cash.

The most important thing to keep in mind when you’re writing your description: what is special about your car? Why is it better than all the other used cars in your area? Above all, be honest and complete in your description!

Advertise It

One of the most important factors to selling your car for the most money is to time it right, if this is possible for your situation. Selling a convertible or sports car in the middle of winter might not work if you live in a cold, snowy climate, where selling a plow truck may not be the best idea in the middle of July! Early spring is a good time, particularly because people have tax returns that they will have to spend.

You will need to determine where to advertise your vehicle for sale. When considering potential places, you should consider the costs and how many people will see it. You may have any of the following to consider in your area: newspaper classified ads, local websites, and local classified ad or sale listing publications. MidTn Autos.com located in Smyrna offers a FREE auto listing on their classified site. MidTn Autos.com also has a special offer that if you purchase a car through them they will advertise you car FREE via Autotrader.com to help you get the most for your car. In addition, you may want to consider national sites like eBay or AutoTrader.

If your employer or school offers classified listings, consider listing it there. If you’re a member of a gym or library where you can put up an ad on a bulletin board, consider that as well. Many times, free postings sell just as well as ones you’ve paid for.

Wrapping Up

The tips above should help you get the most from selling your ca r as a private-party. While it is a little more time-consuming and involves more work than trading it a dealership, it can mean hundreds or even thousands more than trading at a dealership. If we at MidTn Autos.com can be of service feel free to contact us 615-223-8833, we arelocated in Smyrna Tennessee . If you’re an out of state buyer ask about their FREE gas fill up. Good luck!

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Car Buying Secrets

Kickbacks for Secret APR Increases

One of the car industry's dirty little secrets is the practice of lenders giving kickbacks to dealers for charging their customers higher interest rates. For example, if a lender's current rate on a particular loan is 8%, but the dealer charges the customer 10%, the dealer usually gets to keep most (if not all) of the additional finance charges. (On a typical 5-year loan for $20,000 that extra 2% adds about $20 to the monthly payment.) This is done on both loans and leases, and because it's done without any disclosure to the customer, it's a deceptive practice.

Money Saving Tip

To get the best possible deal on a new car or truck, do all of your homework before signing any contracts or putting any money down. Dealer tricks (like secret APR increases, packed payments and other common rip-offs) can quickly erase any discounts or other savings that you think you're getting, so learn how to calculate your own monthly payments. Use the Internet to get at least six quotes before you start negotiating with dealers.

Quoting Packed or Loaded Payments

Quoting "packed" or "loaded" payments is a deceptive practice that is commonly used by car dealers. (It's even taught to their salespeople in training seminars.) Here's how it works: When the customer asks how much the monthly payment would be on a particular vehicle, the salesperson gives them an inflated figure that represents a higher loan amount or APR. For example, if the correct loan payment was $345, the customer might be quoted a payment of $385. On a 5-year loan, this would end up costing the customer an additional $2,400.

If the customer (unknowingly) agrees to the inflated monthly payment, the dealer then has a number of ways to get his hands on the additional money. For example, the customer might be talked into getting one or more high-priced (and high-profit) items like an extended warranty or car alarm, "at little-or-no extra cost." (At least that's what the customer is told.) Or the customer might be charged an APR of 11% on a loan when the going rate is only 8%, so the dealer can pocket the additional finance charges. And if inflated payments were used on a lease, the extra money could represent a secret price or APR increase.

This little scheme is frequently used to trick people into leases: Dealers simply quote inflated loan payments to make a conventional purchase look a lot more expensive than a lease. You can avoid this scam by using the Internet to find competitive rates on car loans (look for "Online Auto Loans" in our Money Saving Tips page), then calculating your own payments.

Extended Warranty Rip-offs

Selling service contracts (extended warranties) has always been a big moneymaker for car dealers. Since their customers have no idea how much markup there may be on a particular warranty, many dealers have been able to make as much profit on that item as they made on the whole car. Worse yet, instead of selling good factory-backed policies, some dealers have sold practically worthless "brand X" warranties at outrageous prices, just to make more money.

Before the days of four-wheel drives, computers, and turbochargers, dealer's cost on these warranties used to be around $200 to $300. Today, policies for a few well-built, basic models (like a Toyota Corolla) may still cost the dealer less than $400, but most have gone up in price. For many four-wheel drives and vehicles with poor repair histories, the dealer's cost may be as high as $1,400 to $1,800 on factory-backed policies, and the typical "family sedan" warranty usually costs about $800 to $900. However, the price to the customer is often whatever the market will bear, so it's not unusual to see dealers trying to sell $900 policies for $2,000 or more.

As an alternative to the high prices that dealers often charge for their policies, reliable extended warranties can also be purchased from other sources. These policies are sometimes called "service contracts," and they're available for most new vehicles at customer prices that are typically around $400 to $700. (Keep this in mind when the dealer tries to sell you his warranty for $2,000 to $3,000 -- plus $400 or more in interest when he adds it to your car loan.)

Overpriced Car Alarms

The increasing popularity of car alarms has given dealers another opportunity to make huge profits. An inexpensive ignition/fuel cut-off system (which is not even a real alarm) typically costs the dealer less than $50 to install, but the customer's price is often $200 to $250. (This type uses a special key that's inserted under the dash to start the vehicle, but it has no real "alarm" features.) Dealers often charge at least $500 to $600 for the installation of a decent (full-featured) alarm system, even though their cost is closer to $150. And some dealers have been caught charging $2,000 to $3,000 for systems that were only worth about $250.

If you're interested in saving money on an alarm for your new car or truck, check the local Yellow Page listings under "Automobile Alarm/Security Systems." A good system can usually be installed by an aftermarket alarm company for $200 to $250 (or less), and some even offer lifetime warranties.

The Dealer Prep Scam

Charging customers for "dealer prep" is an old trick that's been used to pick up an easy $150 to $200 (or more) in extra profits. Since dealers are already being paid by the factory for new-car preparation, any amount that you pay for this service is pure profit. Don't fall for this, just refuse to pay it.

One-Price, No-Haggle Dealers

A "revolutionary" concept is being tested in the sale of new and used cars: fixed, no-haggle prices. Saturn dealers have always had this (supposedly) "consumer-friendly" policy, and now a growing number of used-car dealers are showing up with similar practices. Several automakers are even attempting to convert some of their new-car dealers to "one-price" after seeing used-car superstores like CarMax and AutoNation getting good customer satisfaction ratings.

Is improved customer satisfaction the only motive behind this trend toward no-haggle prices? Maybe not. A recent survey of used-car transactions suggests another reason for dealers to embrace this radical change: On average, no-haggle dealers are getting more money for cars than dealers that allow price negotiation. How much more? Usually $500 to $600, sometimes as much as $1,000.

Warning to Car Buyers

Many car buyers who rely on the Internet as their only source of information end up paying a lot more than others who do a little more homework. How much more? Typically $500 to $600 on your average $20,000 vehicle, and sometimes as much as $1,500. (Even more on higher-priced cars.) Why are these people paying so much more -- for the same vehicles? And what secrets do the "smart shoppers" have that enable them to get better deals? INFORMATION! Car buyers with the best information get the best deals, and smart shoppers know how -- and where -- to get the best information. (They also don't mind paying for it.)

Too many people make the mistake of thinking that all they need is the magic "dealer invoice" number to get the best deal. Thinking that "dealer invoice" is the same as "dealer cost" is mistake #1, which is usually followed by mistake #2: thinking that they can always get accurate dealer cost information on the Internet, for free. Mistake #3 is not knowing the actual prices that "smart shoppers" are paying for the same vehicle. Mistake #4: thinking that a dealer who belongs to an Internet buying program is going to give them the lowest price in town. Mistake #5: not researching loan and lease rates before visiting the dealer. Mistake #6: believing the dealer when he says, "The best rate I can give you on a loan (or lease) is X%." Mistake #7: not knowing how to calculate their own loan/lease payments. Mistake #8: buying a service contract from the dealer at the quoted price. Mistake #9...Are you beginning to get the picture? There's a lot more to gettin g a great deal than most people realize, and you're not going to find all the information you'll need in a Web site.

Here's a true story of mistakes made by one Web-surfing car buyer: "Fred" works in the computer industry and is an experienced Web surfer. When he mentioned to a friend that he was in the market for a new car, his friend told him about a car buying book he had read and how much money he had saved by following its advice -- which included paying for accurate "dealer cost" information. But Fred thought that was silly because he knew how to find everything on the Internet, for free. (Or so he thought.)

When Fred was ready to buy, he used a popular Web site to get his free "dealer cost" numbers. Then he went to the dealer to make an offer. After a little haggling, the dealer agreed to sell the car for $800 over invoice, stating that "normally, we like to make more than $800 on a car, but we'll accept your offer." Since Fred thought the dealer was only making $800, he was convinced that he was getting a great deal. What he didn't know was that the dealer's real cost was a lot lower than invoice due to secret dealer incentives that were worth about $1,300. (So the dealer made $2,100 on Fred's car, not $800.) And he also didn't know that other people (the smart shoppers) were buying the same vehicle for hundreds below invoice. The bottom line: Fred overpaid by at least $1,000 because he tried to save a few bucks by using free "dealer cost" information.

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These are great ways to stay safe while surfing the web:

1. Use strong passwords when creating online accounts that associate your personal information.

2. Never download e-mail attachments from someone you don't know. If you do decide to download the file, make sure you have anti-virus software installed and running.

3. In your Advanced Internet Options, disable Active X controls from automatically downloading. These can easily contain malware or spyware.

4. If you are purchasing off the internet, always try to use Credit not Debit, because most companies offer some degree of Credit Card Protection.

5. Always use a firewall while surfing the web, your IP address can easily be discovered, and taken advantage of.

6. Only chat online with people you know, chat rooms are garunteed breeding grounds for problems.

7. Make sure you have anti-virus software installed, check for updates daily.

8. Do not leave your computer online when it is not in-use, it can be compared to leaving your front door unlocked while you are sleeping.