The overall process
First, let’s go over the process. You need to prepare the car, prepare all the paperwork, find a buyer, and make sure everything is in order before you sell your car. You may want to contact an independent agent in your area or the travelers representative for help.
Necessary paperwork
Before you can sell your car, you need to get all your paperwork in order. Note that the paperwork you need may vary depending on the state you live in.
What you will need:
- A copy of the title to the vehicle
You need this to legally sign over the car. You might not have the title if you’re still paying off the car. In this case, you’ll need to check with your lender to find out what you can do. If you own your car but you’ve lost the title, you can request a new one at your local Department of Motor Vehicles (DMV). - Warranty and insurance
If your car is still under warranty, you should include this documentation. It can also increase your car’s price! You should also check if your warranty is transferable to the next owner. As for insurance, you need to contact your insurance company and make sure you are covered during the sale and that you can transfer your insurance to your next vehicle. - A bill of sale
You will need to provide a bill of sale to the next owner, so it’s best to get it ready ahead of time. This is a legally binding document proving that the car now belongs to the new owner. We recommend you ask your local DMV office for the details as each state has different requirements for the information that needs to be included in the bill. - Service records
While service records are not legally necessary, it’s best to include them if you can. Not only will sharing service records increase the selling price of your car, it will also increase your chances of finding a buyer fast. - Car manual (optional)
Try to look through the glovebox; you might still have the original manual!
Together with the mileage and the state of the car, all of this paperwork together will also help you determine the price of your car.
Market research
The next step is to decide on the price of your car. There are a few things to consider.
First, the state of your car. How old is it? Does it have any scratches or dents? Do you have all the paperwork?
Next, your target market. You should consider what types of buyers are around you and what kind of cars they might be looking for. For example, convertibles are easier to sell in the summer or if you live close to a beach, whereas SUVs and minivans are more popular with families, so in the suburban areas. Pick your listing location accordingly.
Create the listing
Alright, now it’s time to create a listing. The listing should include all the information above and pictures of your car.
We heavily recommend thoroughly cleaning your car. This means vacuuming, waxing, cleaning the glovebox and all the small compartments, everything, both from the inside and the outside. You can hire a professional since cleaning your car properly will help increase the price, but if you are on a tight budget, doing it yourself is more than enough.
Once the car is clean as new, take photos of both the interior and the exterior. Make sure the photos are nicely framed, high quality and taken in good lighting. The photos should include a picture showing the mileage, as well as any distinct features such as the navigation system or the wheels, etc. You should also include pictures of any defects, such as bumps or scratches. It’s important to be honest about these things upfront to ensure that the buyer is making an informed decision.
Lastly, keep in mind that you can (and you should) list your car on multiple websites. There are different platforms available, including websites, local newspaper listings, and others. Choose the one(s) that will reach your desired audience.
Prepare for test drives
Oftentimes, potential buyers will want to see the car in person and test it before buying. However, just handing them the keys can be quite dangerous. We recommend meeting during the day at a public place such as a shopping center.
It’s also a good idea to take a picture of the potential buyer’s driver’s license. Not only does this ensure that you know who is responsible in case of an accident, but it also helps prevent theft. You may also want to bring a friend or a family member just in case.
Lastly, you should double check with your insurance company to see if your insurance covers accidents caused by a different driver; alternatively, you can ask them if their insurance covers it.
If everything goes well, you can sell your car!
After you sell your car
The sale isn’t over after you hand over the keys. You will need to notify your insurance company that you have sold the car. If you are replacing your old car for a new one, your insurance rate might change based on the price and model of your new car.