“How Do I Sell My Car?” Questions Answered

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kingr
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“How Do I Sell My Car?” Questions Answered

Post by kingr »

Our Q/A has been swamped with questions mostly concerned with how exactly does one sell their car? This question seems most common among drivers who are attempting or thinking about selling their car privately. Which isn't surprising, as selling your car privately remains the most popular method among car owners, as opposed to selling through dealerships, trades or upgrades according to our annual consumer survey. Done right, selling your car privately can be quick, but done wrong, can be a nightmare as some personal stories from our community have shown (link). So we've put together a list of tips and answers to ease you through the process.

Here are some answers to the most commonly asked questions on our Q/A when trying to sell your car privately.

1) Are service or maintenance plans transferable when I sell my car?

Firstly, you should know the difference between the two plans. It may seem obvious, but your service or maintenance plan still attached to your car may seem attractive to a potential buyer, could actually be putting them off. Some buyers don't want to be paying for a plan that's limited to OEM dealerships or plans that only cover serviceable parts.

Service Plans

Service plans assist in maintaining the roadworthiness of your car by having periodically set service intervals, which are done by approved dealerships. A service plan can be categorized into two parts, a minor and major service. A minor service usually includes a thorough inspection, and recommended repairs that aren't covered by service plans, along with a basic swop and top-up of; spark plugs, brake fluid, antifreeze etc. While service plans do cover the cost of labour and serviceable parts as well as reassure you that your car will be serviced by a trained technician and OEM serviceable parts, it limits you to only a few approved dealerships and recommended serviceable parts. If you're selling your car that's a couple of years old, it will inevitably exhibit some wear and tear. So any internal, external trim issues or electronic failures will not be covered by a service plan - something a potential buyer would be concerned about.

Maintenance Plans

Maintenance plans are the ultimate peace of mind - at a price. They are effectively providing full coverage of your car. As opposed to service plans, any mechanical or recommended repairs are covered, including labour costs. Whether it's a new clutch kit, timing belt/chain or camshaft, that's all covered by a maintenance plan. However, extending your maintenance is costly and still limits you to approved dealerships. A potential buyer may not want the additional cost of a maintenance plan that will be included in your asking price as well as being limited to only a few dealerships - some would prefer aftermarket parts as opposed to OEM and RMI technicians. Keep in mind that not all maintenance plans are the same, so do the homework.

Are both plans transferable when I sell my car? Yes, they are transferable when you sell your car it should be included in your asking price or monthly repayments. Bear in mind, having an up-to-date full-service history will add to the value of your car when you sell it.

2) What is the difference between retail, book and market value of a car, and how does it affect the price when I sell my car?

A common problem that usually arises when car sellers are attempting to sell their car is displaying some cognitive dissonance when it comes to evaluating their vehicle and focusing on only the book, retail or market value of their car when setting up an asking price. Which usually stems from not knowing the difference between the three terms.

Book Value

The book value of your car is a national average value based on the numerous transactions of your model being sold and traded. The book value is a baseline tool used by dealerships and is the primary determinant of price when you trade or sell your outright with dealerships. The book value is an industry guideline, as numerous factors influence the price, based on the average and current price paid for your particular make and model. A common problem among car sellers is to only focus on the book value and price their car above or at the industry average. Mileage, age of the car, wear and tear and demand, among others, all influence the price. While the book value of your car is a guideline, it's an essential one and can be used as an accurate baseline for your asking price.

Retail Value

If you're selling or buying a car privately, the retail value isn't something you should worry about as it operates in the retail environment. However, a few members of our community on our Q/A have confused the terms of market value and retail value - an easy mistake to make. Retail value is not the same as market value. Retail value is normally higher than the market value and is the average price a dealership would resell your car at - Ceteris paribus, all other things being equal. Although it shouldn't be used as the main determinant of your asking price, it can still be used, among other factors, to determine a fair asking price.

Market Value

The market value is what every private car seller should aim for or get to as reasonably possible without dissuading potential buyers. The market value is what the free-market will pay for your car regardless of the average price set by manufacturers and dealerships. Which means certain factors are unique in this regard; consumer sentiment towards your car and brand, personal mods, as well as the usual factors such as; mileage, age and general condition of your car.

As an example, the book value of a 1970's VW Beetle or Datsun 510 would be meagre. But because of demand and consumer sentiment towards the car as a collector's item, the market value would far exceed the book value. Similarly, the retail value of a 2011 Ford Focus RS sits around R245,000; however, the market value ranges from R350,000 to R450,000.

3) What factors will influence my asking price, and how can I add value when I sell my car?

As stated above, there are a host of variables that go into deciding the value of your car and setting a reasonable and attractive asking price, which can be quite daunting to the first-time seller. Luckily, Wheel Index has an easy-to-use and useful tool for car valuation. The car valuation tool uses up-to-date industry aggregates and inputs that will give you the accurate retail value, auction value and book value of your car!

Adding value to your car is entirely in your hands. If you look at your car from the buyer persona, you should pick up potentially concerning issues with your car that a buyer wouldn't like. Fixing interior and exterior trim issues, small dents and scratches, electronics as well as providing an up-to-date service history will go a long way in adding value to your car.

4) Should I accept cash as a form of payment when I sell my car?

Cash payment while not being the safest option, is quite common especially with cars under R100,000. A real concern for car sellers is that the potential cash buyer will not have the available funds to facilitate the outright or monthly payment. And without bank details to reference back to in the case of a dubious buyer, cash payments are often not preferable. However, do not hesitate to ask for some proof of available funds.

5) Why should I sell my car privately through Wheel Index?

If you haven't read the personal account from one of our community members about his attempt to sell his car on his own, you should. Selling your car privately through Wheel Index will not only connect you to qualified buyers but will also connect you to dealerships across the country - 100% free. You don't have to sift through time-wasters and unscrupulous characters to get to buyers who are genuinely interested in your car. Payment is quick, secure and facilitated by Wheel index, giving the buyer and seller both peace of mind.

If you feel like the above answers don’t cover your question, don’t hesitate to ask on our Q/A where one of our community managers will be happy to assist!

Are you not selling? Are you a car-buyer? Are you worried about potentially buying a stolen car? Get the comprehensive information and history of a vehicle with a VIN check - the easiest stolen car check method! From the engine type, model serial number to the complete accident history of a car, a VIN check is the most accurate and useful way of getting information about a car.
Kurt #3337

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