How to sell a car privately

Selling a car privately can be a great way to maximise your return, but it requires a bit of preparation. Here are a few things you can do.

Prepare your car for sale

The first step is to get organised. If your service book hasn’t been updated, or if you don't have one, visit your mechanic. If you have a regular one, they should have the car’s history on record. Gather the necessary paperwork, including registration documents.

Make any necessary repairs and prepare your car for a roadworthy certificate, if required by your state. Consider polishing and even professional detailing. This can improve your chances of impressing potential buyers.

Determine the right price

Research similar makes and models to gauge your car’s market value. Price negotiation is a common part of the private car sale process, so prepare yourself. But don’t feel pressured into accepting an offer you don’t think is fair.

Some sellers intentionally advertise a slightly higher price for their vehicle so they can bring it down for the buyer. But be careful, as an overpriced car may put people off.

A good measure is to set your price slightly higher than trade-in offers but lower than dealership sale prices.

Create an effective listing

Give your car a chance to shine! Take high-quality photos of it from various angles. Write a detailed and honest description, highlighting key features and any recent upgrades. Be truthful and mention any dents, scratches, or issues.

List your car on reputable online platforms and marketplaces. Or simply put a good old-fashioned “for sale” sign on the windows.

Handle inquiries and test drives

It is important to respond promptly to inquiries and be easily contactable. Have your sales pitch ready and be available for car inspections and test drives.

Some people find this process unsettling if they have to do it alone. For test drives and inspections, you can consider the following steps:

• Arrange to meet them in a safe, public location or neutral territory like a shopping centre car park.
• Ask for ID and take a photo for your records.
• Have a friend or family member present for added security.
• Always accompany potential buyers during the test drive—and bring your chaperone along. If you have insurance, check what your policy says about test drives.

Suncorp Comprehensive Car Insurance customers can make a claim if a buyer has an accident while test-driving their vehicle for a sale. However, this only applies if the insured person or a listed driver accompanies the potential buyer. Refer to the Product Disclosure Statement (PDS) for more information.

Learn more about Suncorp Comprehensive Car Insurance

Find your buyer and close the deal

When screening potential buyers and negotiating prices, don’t hesitate to discuss safe payment options for your private car sale. Here are some things to think about:

• Direct bank transfers are often the safest and fastest method.
  
• Consider using mutual third-party platforms like PayPal.
• Beware of buyers claiming to have transferred funds without verification.
• Always confirm that payments have cleared in your account before completing the sale.
• If you’re considering instalment payments, have a written agreement signed by both parties and consider having a lawyer review the contract.

When payment is out of the way, it’s time to complete the necessary paperwork, such as the registration transfer form and a sale receipt. If you are unsure what paperwork you need, speak to the regulatory authority in your state for advice.

Then, it’s time to shake hands and turn over the keys to your car’s new owner. After the sale, don’t forget to transfer or close your tollway account and car insurance.

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Read more:

• What to know before people test drive your car
• When is the best time to sell my car?

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