Posted on Thursday, 12th September 2019
To help ensure the most seamless sale that generates the best return for you, you just need to be prepared - and there are several ways you can make sure that you are.
First things first - you need to do your research. That way, you can ensure that you’re happy with the decision you ultimately take. If you have time to spend on the sale too, you’d be well advised to get as many quotes as possible from different dealerships. This way, you can ensure that you get the best price for the vehicle in question.
How valuable this time would be really comes down to how much time you ultimately have and whether the sale value of the car justifies it.
We’ll go into some specific care tips later in this guide, but don’t neglect the upkeep of your car. If you do, you may cause irreversible or at minimum, expensive damage to repair.
At the time it then comes to selling your car, you could then be left with an expensive bill that wipes out any profit you make; or a car in such bad condition that no-one wants to buy it.
Read on for our full set of tips; or head to the base of the article for our summary infographic!
When you’re negotiating the price for the sale of your car, there are a few things you can do to improve your chances of securing a better deal for yourself.
If you want to get the maximum possible price for your car when the time comes to sell, ongoing care throughout your ownership of the vehicle is key. If you’ve treated it badly, you’ll struggle to fix all the issues at the last minute without incurring hefty costs.
Some of the ways you could currently be damaging your car’s value include:
Whatever you can do to influence the impact of each of those seven issues will undoubtedly help you to maintain more value in your vehicle.
Once the primary negotiations for the sale of your vehicle to a dealership have taken place, you’ll need to tie up the loose ends in terms of paperwork to fully complete the sale.
When you come to sell your car, you first need to ensure that you have your V5C document for your vehicle to hand. It should be intact and in good condition.
Then, after agreeing the sale, you need to inform the DVLA that you’ve sold the car and that ownership has changed. Make sure you give the buyer the V5C/2 section of the V5C certificate. This will act as their proof of ownership until they receive a new V5C from the DVLA.
You can use the following link to inform the DVLA of the change online. This can be done between 7am and 7pm every day of the week and you simply need to provide the new owner’s email address. When you submit the form, you’ll receive a confirmation letter and email.
This is the same for when you sell your vehicle to a car dealership.
It’s imperative that you inform the DVLA as soon as you’ve handed over the responsibility to your vehicle (documents, keys etc.). Otherwise, you could risk being hit with potential convictions and offences related to the next driver of the car.
For whatever reason you’re looking to sell your car for, if you’re part way into a car finance deal isn’t something you can do easily or without incurring additional costs. Depending on the type of finance agreement you have in place, your options will be different:
Personal Loan Purchase: If you took out a personal loan to pay for your car - and providing you’ve paid for it in full - you’ll own it outright once the last payment has been made. As the legal owner of the car, you’ll be entitled to sell it. Just bear in mind that if you haven’t made all the loan payments, you’ll need to continue doing so until that agreement is complete.
Hire Purchase Finance: With hire purchase (HP) finance, you can’t sell the car; since the lender is the legal owner until the finance is completed. You would have to end your agreement early to sell the car.
Alternatively, if you’ve paid less than half of the total agreement cost, you can return the car - but you’d have to keep paying the remaining installments to reach half the car’s value. There may be additional fees and interest too.
If you’ve gone past half the cost, you can’t return the car.
Bear in mind that your finance contract may include a voluntary termination clause; which would enable you to hand the car back and make no more payments if you’ve paid at least 50% of the cost.
Another option is to settle up now and sell the car. You’d need to write to the finance company in question and provide a settlement figure. Once this is paid you are free to sell the car.
PCP Finance: With personal contract purchase (PCP), you are able to loan a car from a finance company. This is typically a deposit of varying size, followed by different monthly payment plans. At the end of the agreement, you can usually opt to pay and keep the car, exchange the car or return the car.
This means you can’t sell the car if it has any outstanding PCP finance or you’ve not paid the settlement figure in full. If you want to terminate the agreement, there are two options related to the ‘voluntary termination’ clause in your finance contract:
Return the car if you’ve paid off half the finance agreement (if you haven’t, you’ll have to pay the difference). It’s essential that you’ve paid 50% of the total payable amount, including fees and interest.
Pay the agreement off early and keep the car. If the settlement figure is less than your monthly payments, you should explore the early payment. Once the final settlement figure is agreed, you can then sell the car.
It’s worth noting that a finance commitment is a big decision and ultimately, you may lose out on money if you enter an agreement and then try to get out of it - particularly if you need to access funds sooner rather than later.
There are several things you can do to protect yourself when you decide to sell. In the case of selling to a dealership, make sure you don’t let yourself be pressured into a quick sale. It’s your car and you’re in change.
There is no one clear answer to this - you simply have to make the decision that best suits your circumstances. There are pros and cons to selling to a dealership, someone you know, via print advertising, via a national site or privately. This guide may help you decide which option is best for you.
To sell your car quickly, make sure you have your V5C, MOT and service record documentation ready. It’s also important to make sure your car is clean and suitable for sale. Once you have these points in order, do as much research as possible and negotiate to get yourself the best deal.
This will really depend on your chosen method of sale and what your ultimate priority is. If you’re more bothered about shifting the vehicle than you are about the price you receive, for example, you’ll likely be able to sell quicker. If you want to shop around and get the best deal, you’re unlikely to secure a speedy sale.
There are pros and cons related to selling your car to a dealership. A dealership is more likely to want your car - and have the cash available to buy it. You’ll also avoid the cost of advertising. Whether or not this is offset by how much more you could make through a private sale can only be decided on a case-by-case basis.
You can sell a car you’ve just bought outright whenever you wish to - but if you’ve taken out a loan or purchased the car using finance, you’ll need to carefully check the terms and conditions of the contract you signed.
To give yourself the best chance of securing the best possible price for your car, make sure you get as many quotes as possible. Where you can, extend this further and get several quotes related to each available sale option (private, dealer etc.). This way you can be sure you’re getting the best possible price for your vehicle. It’s worth reading plenty of reviews where applicable too. Just remember to bear in mind any advertising costs and how valuable your time is to you.
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