5 Biggest Mistakes to Avoid When Selling Your Used Car

For sale sign on windshield of car

Selling a used car can be tricky business. Even if you've done it many times before, it is still possible to commit mistakes that make it harder to sell your car, if not bring your vehicle's value down. Here are five of the biggest mistakes you can do when selling your used car so you can avoid them.

1. Not knowing your car's value

You're probably aware that different vehicle brands command different prices, but are you aware that it applies to trims as well? The selling price of a top-of-the-line model can vary drastically from a base model, so it's important to know your car's specific model and other relevant details to have a good idea of its correct value. If you must, don't hesitate to have your car appraised by a professional. You may have to spend more upfront, but it can pay off big come selling time.

2. Keeping the title in your name

Although it makes transactions less of a hassle, keeping the car's title in your name can lead to plenty of headaches down the road. For instance, should the car figure in a hit-and-run accident, you could be the one who gets sued instead of the current owner. Not to mention you could also end up paying for penalties to traffic violations that the current owner may commit. Make a clean break with your used car and make sure to transfer the title to the new owner when you sell it.

3. Not ensuring all the paperwork is done

Your car's title isn’t the only document that you must furnish when selling your used car. You'll also need to supply the buyer with the original copies of the vehicle's registration and the corresponding receipt (OR/CR), transfer of insurance, and notarized deed of sale. It can also help to have your maintenance records handy, in case the buyer asks for it. Get all these documents done before putting your car up for sale.

4. Agreeing to installment payments

Though it can be tempting to sell the car in installments, especially when you're strapped for cash, it's best to limit your car sale to those who can afford to pay the full purchase price in cash. Checks and money orders can be risky, and if you agree to take installments, there's always the possibility that your buyer will miss out on payments, or not make any at all.

5. Undertaking major repairs to boost the car's value

When it comes to selling a used car, minor repairs are okay, but a major one, not so much. Granted, a car with a newly-overhauled engine will fetch more money than a car with glaring engine problems, but that additional cash won't likely cover the cost of the repair. If your car does need major work, get a written estimate for all the repairs that need to be done. You can use this document as a negotiating tool should the buyer give you a low-ball offer. Just make sure to disclose the problems to the buyer to avoid legal complications.

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