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Lessons Learned From Selling My Used Car

Posted by admin on July 23, 2007 in Misc.

Please note that I am on extensive business travel this week and this week’s postings have all been pre-written.

I am pleased to report that I sold my used car this weekend. I attribute this in no way, shape or form to my selling ability but to the fact my car (a Mazda hatch-back) is one of the leading selling sub-compacts in North America. Having never sold a used car before, this has been quite a learning experience for me and the ultimate do it yourself process. I wanted to share some of the costs of selling the car and the do’s and don’ts of selling a used car that I learned the hard way.

Costs: In the interests of reaching the largest audience possible in the selling my used car, I advertised in AutoTrader’s used car catalogue, paying for their middle of the road classified option (there’s three options: a small text only ad, an ad with a picture and more words (the one I bought) and a large ad with room for a lot of copy). It cost me $72.08 for one month’s worth of classifieds. I also had a buy a used car information package from the Province of Ontario which is required to transfer a used car here (cost $21.00). All figures include tax.

DO makes sure that your car is ready for sale. I had the car taken in for its quarterly maintenance beforehand (having a dealer’s stamp on your maintenance book seems to be a plus) and had the car washed beforehand. In the Province of Ontario, you have to buy a “Used Car Information Package” which lists how many owners the car has had and, more importantly, whether the car has a lien registered against it. It also includes a bill of sale which is the document transferring ownership along with signing off on the vehicle portion of your registration. The document is really to protect the buyer. Order this about 10 days before you advertise the car for sale so that you can clear up any issues before sale (I believe the package is good for 36 days after date of issuance). Please clear any liens before you sell the car since you will not be allowed to transfer a used vehicle without the car being free and clear of all liens. Make sure you understand the process of selling a used car (registering it with the Minister of Transportation, license plates, insurance etc.) better than the buyer. They will expect you to guide you through the process.

DON’T forget to clean the engine block as well. This was my one big blunder. Someone opened up the hood and saw a dusty and dirty engine block and said “hmmm….”. I have been told there is a debate whether to get your engine shampooed or not- some people believe that an engine shampoo may damage the electrical system if not done properly (please note I am not a “car guy” so I can’t debate the relative merits about an engine shampoo at length). At the very least, make sure you take a dirty rag and wipe down the engine block.

DO try to find some hook to sell your car. There are numerous used cars of the same make and year as mine for sale. I priced my snow tires into the price in order to make it more attractive and put this in the ad (my car has sports tires which does not grip well in snow so snow tires are highly recommended). The first thing the buyer said to me when I delivered the car was “did you bring the snow tires?” If you do not have snow tires, perhaps try a full tank of gas included in the price (which could be literally a $100 bonus if the used car is large) or payment of the seller’s new license plates; the cost is relatively small but it makes your used car stand out somewhat. Its the small things that count they say.
DON’T forget to tell the potential sellers what part of the city you live in and what color your car is. I missed these two facts in my ad and I had to explain this to every single person who called or emailed. AutoTrader has a huge advertising area. I ended up speaking to people who lived an hour’s drive away from me who were reluctant to travel far to see a used car. Color also appears to be the 2nd most important factor in the purchasing decision after mileage. Given that the pictures are black and white, it is best to describe the car’s color as well.

DO set aside some time on nights and weekends to sell the car. People called me all hours of the day inquiring about the car (top 3 questions asked: (i) have you been the only owner of the car? (ii) has it been in an accident? (iii) tell me about the maintenance history?) and wanted to sell it at strange times (the buyer of my used car saw it at 9:30 at night). Once you have someone interested, please make sure they give you a deposit so they are not using you as leverage for another deal.

I hope the buyer of my car gets as much enjoyment out of the car as I do.