5 reasons why people struggle to sell a car privately

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kingr
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5 reasons why people struggle to sell a car privately

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Selling a car privately sounds like a great idea, because you might score by getting more money for your car than what the dealership offered. But, not so fast! There are some dangerous pitfalls that you can fall into when you are selling a car privately. Most people end up sitting with their used car for months after posting that first Classified ad. Here are the top 5 reasons why people struggle to sell a used car privately in South Africa.

How to sell a used car?
If trading your used car in at the dealership makes the best sense for you, all good. It's a popular route precisely because it's swift and relatively uncomplicated. It's certainly not going to fetch you the best price for your used car - far from it - but it might appeal for the convenience and minimal hassle. Dealerships can also often place your car on consignment, although you'll need to have patience (and a car in the meantime) when choosing this route.

Auctions are very popular in South Africa, but they come with a different set of rules, and you'll need to be experienced to walk in and make a satisfactory sale via auction. Whether it's an online or real-time auction, the general perception of lemons & bargains persists at an auction. Selling a car there can be difficult, and it's unlikely to fetch the best price possible.

The last option is selling a car privately, cleaning and advertising your car, and entertaining prospective buyers. Whether you have us on board or are selling wholly privately, this route is the one that leads to the highest sale price, although it's more hassle than simply handing your used car over in a trade-in.

One of the best ways to prepare for selling a car is to put yourself in the buyer’s shoes. The worst-case scenario for any car buyer is buying a car that has hidden problems which might lead to unreliability and high costs in the future. Every buyer wants a piece of mind and assurances that the car they are buying is what the seller says it is. The easiest way to convince the buyer is not only by having a car that's in good condition but also having as much evidence as possible to support your claim. For example, a ten-year-old car might have high mileage, but if it was only taken to the dealer and has a full-service history, it will have a better chance of being sold than the same car without any service history.

Another thing that all car buyers appreciate is honesty. Older cars especially might have a couple of things wrong here and there, and buyers expect to be told about them. When selling a car, nothing scares off a buyer more than finding fault with a prospective vehicle after the owner has assured them that everything is fine.

1. Price
Your car might be overpriced for a private sale. Private sellers cannot realistically expect to get close to retail value for their car. The retail value of a car is a guideline price car dealerships use to sell cars in a retail environment. This is how the car industry operates worldwide, so expecting to get almost retail value for your used car is setting yourself up for disappointment. The reasons behind consumers paying retail price for a car at a dealership, is the guarantee or warranty, the peace of mind of dealing with a legitimate company, and the fact that the company can also provide them with after-sales support if needed. The first step before advertising your car is an online car valuation. This will give you a good idea of where you stand with the market value of your car.

You can then take into account the overall condition and mileage of your car, and price your used car accordingly. A reasonable asking price for a private sale is usually slightly above trade value. You might have priced your car at the amount of your finance settlement. This pricing strategy is fine if your settlement is in line with the trade value of your car. If your settlement is still very high, however, be prepared to take a knock and pay in the shortfall amount.
Something also worth thinking about is also having a price that's open to negotiation. When selling a car, the buyer will often try to haggle a bit to get the best price. As a seller, it's wise to leave some room for negotiation and should, therefore, price the car accordingly if they want to sell the car fast.

2. High mileage
There is an oft-repeated myth that all BMW engines, for example, will blow out after 100,000km. This, of course, is not true. People do fear high mileage cars though and have good reasons to do so. With a higher mileage used car, maintenance costs can get expensive really quickly. Nobody wants to buy a used car and replace shocks or a clutch after a couple of months. This is, unfortunately, often the reality and can make selling a car stressful because potential buyers will think about these expenses while looking at your high mileage used car.

Additionally, many cars require a major service or, components like cam belts replaced when they reach 90 000 to 100 000km. Would-be buyers would appreciate if these things were taken care of or at the very least a sweet price to compensate for the future expenses. If that major service or component replacement has already taken place, the buyer should be made aware as it proves that the car was well-maintained and works in the seller's favour.

When selling a car with high mileage, deciding factors that can make, or break a sale are the overall condition of the car, as well as the service history.


Things to consider when selling a car with high mileage.

Type of car – Not all cars are created equal, and some are known for lasting longer than others, and also having cheaper repair costs. A Toyota Hilux with 200 000km on the clock can generally be expected to last a lot longer, and spares and parts are readily available. On the other hand, a Peugeot 3008 with similar mileage might be considered a higher risk due to its reputation, as well as the cost and availability of parts. Of course, this also depends on how the car was cared for, etc.

Mileage doesn’t tell the full story – Sometimes mileage can be misleading. An example would be a car with high mileage that was only driven at low speeds and on good roads compared to a car that has less mileage but was driven hard on bad roads. In this case, the car with the higher mileage might have less wear and tear, and therefore a better buy. When selling a car, it's always good to be upfront about how the car was driven and where it has been.

Cars are now better engineered than ever – While there’s no doubt that wear and tear can lead to part replacement, advances in manufacturing and materials mean that modern cars should last longer, provided that they have been well-maintained. However, selling a newer car and has at least some of the warranty left is easier than selling an old car with no guarantees.


The average yearly mileage for a South African car is about 20,000km/year. If you are selling a car with above average mileage for its age, you should consider advertising your car at a lower price, to attract buyers. This tactic also shows that you acknowledge that the used car has high mileage, and you should mention too that your asking price is a fair nod to that. Again, with high mileage, car buyers would like evidence that it won’t be a lemon and the condition, as well as the service history might be deciding factors.

3. Overall condition
When buying a car at full retail price, you as the buyer, expect the car to be in excellent condition. The same reasoning should apply when selling a car. It's essential, to be honest, and take into account the actual condition of the car when pricing your car. If you have curb rash on every wheel, a dent or two, and the air-conditioning needs a re-gas, you cannot expect to get the highest possible price for your used car. While viewing your car, potential buyers will notice these defects and lose interest if the condition of your car is not aligned with your asking price.

Things to think about if selling a car that’s not in good condition.

Honesty – When selling a car, it's wrong both legally and ethically to withhold information regarding the car's actual condition, or lying about specific things to make a quick sale. If there's a problem or something is worn out, let the buyer know and factor it into the price. According to the Consumer Protection Act (CPA), the customer has six months to return the car if it doesn't perform to the required standard.

Focus on the good points – Selling a car that's not in good condition can be tough. To make things a bit easier, it's worth telling the prospective buyer about the good points of the car. Any parts that have been recently added or replaced should be highlighted, and in some cases, receipts or proof of the replacement should be shown to the buyer.

Allow the buyer to bring their own mechanic – Many buyers prefer to have the car checked out by their trusted mechanic or get a multipoint check done at a Dekra, Bosch, or other service companies. Sometimes a prospective buyer might even want to get the car checked twice to get some peace of mind. Sellers should always be accommodating to these requests, as long as it’s within reason. In some cases selling a car can be easier if the seller gets the test done themselves and have it ready for the prospective buyer. It will give the buyer the peace of mind that they are looking for, as well as increase the trust factor of the seller.

Target Market
– If a car is in awful condition or not running at all, the majority of car buyers out there won't be interested in buying it. There might be some takers, but they will offer a meager price because of the costs, as well as the risks involved. In this case, it's sometimes better to try selling a car to buyers who are in the business of fixing cars and reselling them. They might not pay the best price, but they are more likely to buy it.

Putting things in writing – It goes without saying that if you put something in writing, then it has to be backed up, otherwise there can be severe consequences if things go wrong. It also works the other way. If you put all the faults in writing and the buyer agrees to buy the car "as is" then there can be no dispute later if those faults lead to more significant problems. Always be honest when selling a car and disclose as much as possible to the buyer

When selling a car, the condition is a reflection on the owner and a car with scratches or dents will likely put off prospective buyers because they will assume that there are probably mechanical issues as well. If possible, repair any small body issues before putting the car for sale to get a faster sale and a better price.

Car dealerships also refer to these repair costs as "recons," and these recons are a big deciding factor when they make you a trade-in offer on your used car.

4. Location
Highly populated cities like Johannesburg yield more options for the used car buyer in South Africa. For reasons of limited market activity, you might struggle to sell a used car in your local area. A bigger city might have ten options of the same car that you are selling, giving potential buyers a much wider variety to choose from, but also concentrating buyers' focus to your benefit. Your car can also be a hard sell for the location. An expensive SUV will be tough to sell in a small town where the average car is a Volkswagen Polo. It's also tough to sell a car in a place with an incorrect target market. An old car in bad condition won't sell in an upmarket place where people are looking for new high-end cars, and a new supercar won't sell in the rural areas.

Buyers also know that cars from some areas are likely to have specific issues. Smart buyers usually check for rust on cars that have been used in coastal areas and check the shocks and suspension of cars that come from bush areas.

5. Demand
Supply and demand is a simple concept that drives every economy. South Africans are incredibly loyal to specific cars and brands. If the car you are selling is not a crowd favourite, be prepared to sit a while with the used car for sale. Selling a limited edition car is the exception, as car enthusiasts will always snap up a good condition rare car when it comes up for sale. The current South African favourites are the Volkswagen Polo, Toyota Hilux bakkies and BMW 3-series, among others. Sometimes, selling a particular model of a car may be more difficult than the others. Buyers will often opt for the model with the best fuel economy to performance ratio before rushing to buy that big V8.

In a nutshell, remember that one person's "reasonable" is not another's, and you need to be satisfied that you are charging a fair price, based on the above observations, for any used car you're selling. Selling a car privately in South Africa can be fun, and the quickest, most pleasant deals are those offering a fair price - fair to you and fair to the buyer.

As long as you're clear in your mind about why you priced your used car the way you did and that you have included concessions as necessary, all good. If you're ready with a car valuation that depicts the average market price for the car and clear on how you've built your price, then you're in line for a positive sale experience that pleases all parties.

Tips for selling a used car privately in South Africa

There are two camps with different responsibilities in any used car sale. You can make your used car sale a breeze if you get some essentials in line.

Always clean the car! If you don't want to do it yourself, visit the carwash. Be prepared to keep your used car neat and tidy until it's sold. If possible, the engine compartment should also be as clean as possible.

Too much information is an excellent thing in car ads, as the opposite - missing information- is an interest-killer. Follow our handy used car advertising guide to make sure that you do the right prep to get your used car sold as fast and efficiently as possible.

Get your admin sorted. As the seller, you'll need to supply the bulk of the paperwork, with the buyer merely providing their details for the most part. All of the car's paperwork should be primed and present. If the car is still under finance, notify the bank that you're selling the car so that you glean a settlement balance, and also make them aware of an imminent change of ownership.

Be clear on your price when you advertise the car, and decide upfront if you're prepared to discount a little and why. Don't be bullied into doing the buyer's homework or admin, and keep the deal within the current CPA's stipulations.

Lastly, be security conscious about showing and test-driving your used car. And when it comes to payment, strictly (real) cash or EFT. If the buyer pays via EFT, log into your account and shuffle the money around a little so that it's demonstrably there and available.
Being aware of the common struggles of private car sellers in South Africa can put you ahead of the game, and make selling your used car privately as pleasant as possible. It takes a bit of preparation, but as a private seller, you control the asking price and negotiations around the sale car.

You can also expect to get the most for your used car from another private buyer, and this is the clincher for many. If you'd like to get paid the most and also have a say in who gets to drive away in your used car, be aware of these struggles, accommodate them and avoid them as you can, and your private used car sale should leave you with nothing but fond memories.

In 2018 Wheel Index did a survey of over 4000 South African Motorists from around the country and gained some interesting information.

1. 85% of car buyers in South Africa are male, while only 14.9% female.

2. 49.3% of people interviewed keep their cars between 2-4 years. 38.8% keep their cars for over five years, and only 6% keep their cars for under a
year.

3. 49.3% said they prefer to sell privately, with 40.3% saying they prefer to trade-in and upgrade. Only 9% said they prefer to sell to a dealership.

4. 54.4% of the interviewees said they preferred automatic cars, compared to 45.6% which prefer manual cars.

Check out the 2018 car selling survey for more information.

When selling a car, it's always advisable to do a car valuation to get the correct car book value. It’s also doing a VIN number check to show prospective buyers that the car isn’t stolen. For these useful tools, as well as the latest automotive news visit Wheel Index.
Kurt #3337

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