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Selling Tips

Edmunds's Quick Guide to Selling Your Car
Selling your car today is a different experience than it was just 10 years ago, thanks to the tools available on the Internet. Here are a few simple steps that can help you turn your used car into cash in the shortest time possible.

1. Know the Market. Is your car going to be easy to sell? Will you have multiple offers? Is it a hot commodity? Or will you have to drop your price and search out additional ways to sell it? Your first step is to check other online car ads. Most sites, such as Edmunds.com Used Vehicle Locator and AutoTrader.com, allow you to search with specific criteria. For example, you can select the year and trim level of your car and see how many similar cars are currently on the market. Take note of their condition, mileage, geographic location and selling price.

2. Price Your Car Competitively. Use Edmunds.com's "Appraise a Car" feature to set the True Market Value® price. This figure is adjusted for a number of factors including mileage, condition, options and the region in which the car is being sold. When you are done configuring the car, you can print out a "For Sale" sign to put in your car window. Be sure to leave a little wiggle room when setting your asking price by asking more than what you want to sell the car for.

3. Give Your Car Curb Appeal. Wash, wax and detail the car. Inspect it to make sure it is mechanically sound and free from dents, dings and scrapes. Shovel out all the junk from the inside of the car. Wipe the brake dust off the front wheels and clean the tires with a product such as Armor All. Thoroughly clean the windows (inside and out) and all the mirrored surfaces. Wipe down the dashboard and empty the ashtrays. Put your maintenance records in a neat folder ready to show interested parties. Have your mechanic check out your car and issue a report about its condition — this could motivate a buyer because you have to overcome one more objection they can present.

4. Create Ads that Sell. When creating your "For Sale" signs or putting an ad in the paper, you have an opportunity to communicate how eager you are to sell the car. "OBO" ("or best offer") indicates that you are willing to entertain offers below the stated price. "Asking price" communicates the feeling that you will negotiate. It means you are asking a certain price, but might accept a lower price. "Firm" is less common, but it can be used to rebuff attempts to negotiate. It indicates that you aren't in a hurry to sell the car — you are most interested in getting your price. Think about what you are telling people by the way you phrase your ad. Little words convey a lot.

5. Advertise Your Car. Traditionally, people advertised in newspaper classified ads but now online ads, such as the ones offered by Edmunds.com, are becoming more popular. However, you should also consider other ways of advertising such as posting a "For Sale" sign in the car window and telling all your friends your car is for sale. Creativity is required when it comes to advertising. Think of unusual places to put ads (skywriting is probably too expensive), and you will get results.

6. Showing Your Car. Bear in mind that when you sell your car, people will also be evaluating you. So, you should make a good impression, make buyers feel comfortable and answer their questions openly. Potential buyers will want to test-drive the car. Ride along with them so you can answer questions. Also, they may not know the area, so you might have to guide them along the test-drive route. Some buyers will want to take the car to a mechanic to have it inspected. If you have a report from your mechanic, this might put their doubts to rest. But, if they still want to take the car to their mechanic, this is a reasonable request.

7. Negotiate Your Best Price. If a person test-drives your car and likes it, you can expect them to make an offer. If their offer is well below your asking price, you will want to either hold firm with your asking price or make a lower counteroffer. Consider your answer carefully. Speak slowly and clearly to avoid misunderstandings. Keep the negotiations impersonal by focusing on reaching a win-win price. Give the negotiation process some thought ahead of time so you won't be caught unprepared when the time comes.

8. Handling Complications. In some cases, you might reach an agreement with a buyer that is contingent on performing repair work. This can lead to misunderstandings down the line, so avoid this, if you can. The best thing to do is have your car in good running order and know in detail about any repairs necessary. Remember, a used car — particularly an old one — isn't expected to be perfect. But it still might be useful.

9. Finalize the Deal. The laws governing the sale of motor vehicles vary from state to state. Check with the governing agency in your state, most of which is now available on the Web. When selling your car, it's important to limit your liability. If someone drives away in the car you just sold, and they get in an accident, you don't want to be held responsible. Once you have the money from the sale (it's customary to request a cashier's check or cash) sign the title over to the buyer or provide them with a bill of sale. Finally, remember to contact your insurance agent to cancel your policy on the vehicle you have sold (or transfer the coverage to your new car).

10. After the Sale. Occasionally, there are unexpected bumps in the sale process that arise. These will be handled easily if you are dealing with a reasonable person. So, as you are contacted by prospective buyers, use your intuition to evaluate them. If they seem difficult, pushy or even shady, wait for another buyer. With the right person, selling a used car should be simple and easy.

Hybrid delights, but at a price
Consider the 2006 Toyota Highlander Hybrid.

Whether buying a hybrid makes a statement is debatable, but it can be scientifically demonstrated that they are cleaner vehicles than standard cars.

Fuel economy also should be quantitative, but it has been controversial lately. Many owners of hybrids complain that their vehicles do not get the advertised 40 to 50 miles per gallon.

Blame it on cold weather, driving style, and a flawed EPA system for rating fuel efficiency. Still, hybrids do outperform their gasoline-only siblings.

The newest problem, as hybrid systems have moved into bigger vehicles, is that the price premium to own one has climbed into the thousands of dollars, even as the efficiency gap between the hybrid and traditional versions of the same vehicle has decreased.

Today's test vehicle is an example.

It had three rows of seats, a 3.3-liter V-6 engine mated to an electric motor, a continuously variable transmission (meaning virtually infinite gearing), and all-wheel drive.

The base price of $34,430 was about $3,000 higher than for a similarly equipped Highlander with standard gasoline power.

I have not driven a regular AWD Highlander in some time, but testing done by others has shown it is reasonable to expect fuel economy of about 19.2 miles per gallon.

During more than 1,000 miles of driving the Hybrid this month, I averaged 22.9 miles per gallon. That figure may be a bit low because most of my driving was in the suburbs and on the highway -- not on city streets, where hybrids perform better. Of course, who wants to rack up a lot of miles in the city with a seven-passenger, all-wheel-drive SUV? And I did not make any special effort, as some hybrid aficionados do, to maximize the hybrid technology. I just drove the rig.

So can you recoup your $3,000, given those performance numbers?

Yes, if you keep it a long time.

My calculations were made based on average annual mileage of 13,000 miles.

The standard Highlander uses regular gasoline, while premium is recommended for the hybrid.

At $2.117 per gallon for regular gasoline (the statewide average for Massachusetts last week), it would cost $1,433 to operate your basic Highlander for a year.

The Hybrid, running on premium at $2.363 per gallon, would cost $1,341.

That's a savings of only about $92 a year. Not exactly dramatic.

Still, if the nation's entire fleet of trucks and SUVs were to improve fuel efficiency by just three miles per gallon, lots of gasoline would go unburned.

And the Highlander has other things in its favor, such as room, performance, and ease of use. It is one of the finest SUVs on the market.

But I'm just not sure that using the hybrid system to maintain or increase power that we may not all need -- and Toyota is not alone here -- meets what should be a key hybrid goal: achieving significantly better gasoline mileage.

Manufacturers, in building today's standard gasoline-powered cars, have used important advances that, while giving us cleaner engines, also provide us with an increasing amount of horsepower, which is why overall fleet performance has not really improved in years.

Hybrids will miss the mark if they travel this same road

2006 Lincoln Town Car 2006 Mercury Monterey

But there also are deals to be had on 2006 cars, trucks, minivans, and SUVs.

At Rodman Ford in Foxborough, for example, the 2006 Ford F-150 pickup truck, a perennial big seller, is being sold with $2,500 in incentives, according to Andrew Dale, the general sales manager. Ford, with its current ''Keep it Simple" program, also is offering $5,000 cash back on 2005 Explorer SUVs and $4,000 on the 2005 F-150.


2005 Ford Explorer 2006 Ford F-150

The incentives on new models are not limited to trucks and SUVs. According to the trade journal Automotive News, Ford's popular Five Hundred sedan and crossover Freestyle come with $1,000 rebates for 2006 (double for a 2005 model). The 2006 Ford Crown Victoria and 2006 Mercury Marquis are being offered with $2,000 and $3,000 discounts, respectively.


2006 Ford Crown Victoria 2006 Mercury Marquis

Sometimes the vehicles on sale are models scheduled to be discontinued, or they have lingered too long on a lot.

And while all manufacturers exclude certain hot sellers from discounting -- such as Chrysler's 300 series, General Motors' Hummer, or Pontiac's Solstice sports car -- most are offering incentives on many popular models through low interest rates, cash bonuses, or both.

General Motors is offering Northeast Region cash allowances of $1,500 on its 2006 Buick LaCrosse, $3,000 on the Buick Rainier SUV, 0-percent financing or up to $4,500 in cash allowances on a 2006 Cadillac Escalade, and even $1,500 on its small 2006 Chevrolet Cobalt.


See incentives offered by manufacturers

Those looking for a Chrysler, Jeep, or Dodge will find such customer incentives as $2,500 on 2006 models of the Dodge Caravan wagon or Durango SUV, $2,000 on the 2006 Jeep Grand Cherokee and Liberty, and $5,000 or more on 2005 Dodge Ram 1500 pickup trucks.

Chrysler is in the waning weeks of what it calls its Miles of Freedom program. Instead of the cost incentives, buyers can choose to receive a debit card good for about $2,400 worth of gasoline, an extended five-year, 60,000-mile warranty, and free scheduled maintenance for two years or 24,000 miles. In addition, the debit card can be used for consumer purchases other than gasoline, said Lisa Barrow, a company spokeswoman.

Foreign automakers such as Mazda, Land Rover, Nissan, Volkswagen, Jaguar, Hyundai, and Kia have also joined in offering end-of-year incentives.

More on the 2006 Toyota Tundra

It was typical of the ''sweeter deals for many buyers" that are now available, said Jesse Toprak, a senior analyst who works for the automotive watchdog Edmunds.com.

Ciccolo, whose company sells Cadillacs, Hummers, Volvos, Saabs, and Hondas, said the aim is to overcome sales doldrums that coincide with Thanksgiving, Christmas, and Hanukkah, when consumers tend to spend their money elsewhere and not think about buying a car. Many of the manufacturer incentives were launched in the fall, but become more valuable in the final days of the year because dealers often add their own enhancements.

This year, the holiday-season slowdown was exacerbated by high gasoline prices that hit truck and SUV sales hardest, as well as by a barrage of successful buying incentives rolled out during the summer -- such as promotions that offered consumers vehicles at the same price auto company employees paid for them. As a result, sales volume was up, but profits were not.

About 15 percent of the vehicles on dealership lots today are leftover 2005 models, Toprak said. For example, a 2005 Lincoln Town car features a $5,500 price cut and Mercury Montereys have been slashed by $6,000.

SELL YOUR USED CAR ONLINE - QUICK AND EASY!

Steps to Selling Your Car Quick and Easy

Family sedans, while unexciting to many, are in constant demand by people needing basic, inexpensive transportation.
SUVs are very popular right now and often move quickly, even older models.
The sale of convertibles and sports cars is seasonal. Sunny weather brings out the buyers. Fall and winter months will be slow.
Trucks and vans, used for work, are steady sellers and command competitive prices. Don't underestimate their value.
Collector cars will take longer to sell and are often difficult to price. However, these cars can have unexpected value if you find the right buyer.

Your first step is to check on-line classified ads to see how much others are asking for your type of car. Cars.com Used Vehicle Locator and other Internet sites allow you to search with specific criteria. For example, select the year and trim level of your car and see how many similar cars are currently on the market. Take note of their condition, mileage, geographic location and selling price so you can list your car at a price that will sell it quickly.
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Once you have surveyed the on-line classified ads, use Cars.com True Market Value pricing to determine the fair value of your car. Cars.com prices are adjusted for mileage, color, region, options and condition. Once you have followed the prompts and gotten a specific price, you can also generate a "For Sale" sign. An Cars.com "For Sale" sign will give your price an air of authority.

There are always some exceptions to the rules of pricing, so you should follow your intuition. And be sure to leave a little wiggle room in your asking price. Ask for slightly more money than you are actually willing to accept. If you want to get $12,000 for the car, you should list the car at $12,500. That way, if you get $12,500 — great! But if you have to go lower, it won't be a terrible loss.

You may have noticed how creative used car dealers get in pricing cars. Their prices usually end in "995," as in $12,995. Are we not supposed to notice that the car basically costs $13,000? There is a lot of psychology in setting prices. A product that doesn't sell well at $20 might jump off the shelf at $19.95.

When people come to look at your car, they will probably make up their minds to buy it or not within the first few seconds. This is based on their first look at the car. So you want this first look to be positive. You want your car to have "curb appeal."

Before you advertise your car for sale, make sure it looks as clean and attractive as realistically possible. This goes beyond just taking it to the car wash. Here is a to-do list that could help turn your heap into a cream puff:

Make sure it is washed, waxed and detailed.
Make sure your car is both mechanically sound and free from dents, dings and scrapes.
Consider making low-cost repairs yourself rather than selling it "as is."
Shovel out all the junk from the inside of the car. When prospective buyers go for a test-drive, you don't want them to feel like they've walked into your messy bedroom. Let them visualize the car as theirs.
Wipe the brake dust off the wheel covers and clean the tires with a tire gloss product.
Thoroughly clean the windows (inside and out) and all the mirrored surfaces.
Wipe down the dashboard and empty the ashtrays.
Have all your maintenance records ready to show prospective buyers.
If the car needs servicing or even a routine oil change, take care of that before putting it up for sale.
Have your mechanic check out your car and issue a report about its condition. You can use this to motivate a buyer who is on the fence.
Order a Carfax report and show it to the buyer to prove the car's title is clean and the odometer reading is accurate.

Check the History
Another telltale sign of potential trouble, though certainly not the only sign, is the number of safety recalls a used model has had.

The federal government's National Highway Traffic Safety Administration maintains a recall database.

This database, for example, reports that the 2000 Ford Focus had an ominous ten safety recalls, and the 2001 Focus had six.

While at the NHTSA site, peruse the Technical Service Bulletins. They detail some vehicle problems that a carmaker has sought to share with dealers.

After finding a prospective vehicle, be sure to check over its mechanicals carefully via MSN Autos' Used Car Checklist. It's a good idea to have a mechanic inspect the vehicle, too.

Also check the vehicle's history to ensure it hasn't been severely wrecked in a crash or stolen. Go to the MSN Autos Used Car Research page to use Carfax or AutoCheck to view the history of a car before laying any money down.

Examples of Exceptional Used Vehicles

Economical small sedans:

1996 Honda Civic EX, $6,000
2001 Honda Civic EX, $9,500
Sporty sedans:

1996 Infiniti G20 with manual transmission, $5,500
1998 Mazda Millenia S, $8,500
Family haulers:

1996 Toyota Camry XLE with V6, $7,500
2000 Toyota Camry XLE with V6, 12,000
1996 to 2000 Honda Accord LX with V6
1997 Honda Odyssey, about $8,500
Plush cruisers:

1999 Lincoln Town Car Executive, $11,000
1996 Acura RL, $10,000
2000 Acura RL, $19,000
1996 Toyota Avalon XLS, $8,100
2000 Toyota Avalon XLS, $18,000
Fun to drive:

1999 Mazda Miata, $9,800
1996 Toyota Celica GT coupe, $8,300
SUVs:

1998 Nissan Pathfinder SE, $11,000
1998 Toyota 4Runner SR5, $13,500
1998 Subaru Forester L, $8,000
1998 Toyota RAV4 AWD, $10,000
Runabout sedans:

2000 Buick Regal, $9,000
1999 Ford Escort, $4,000
Source: Consumer Reports' 2003 Used Car Yearbook

Kelley Blue Book Best Value Holders among 2003 models
Acura MDX
BMW 3-Series
Chevrolet Corvette
Honda Civic
Infiniti G35
Jeep Wrangler
Lexus LS 430
Mercedes-Benz CLK
MINI Cooper
Toyota Tacoma

Best Used Vehicles

The 1996 Honda Civic is considered an exceptional used car value.

Used vehicle sales far outnumber new-model sales each year, but shoppers need to be well prepared and savvy to get the best used vehicle.

The 1998 Mazda Millenia is an example of an exceptional value sporty sedan.

The 1999 Lincoln Town Car is considered to be a great value as a plush cruiser.

The 1996 Toyota Celica GT is a great choice for a fun-to-drive used car.

With the average retail new-vehicle price now topping $30,000, many American consumers are choosing to buy used vehicles instead.
After all, the average price for a used vehicle in the United States is far less—around $14,000, according to the National Automobile Dealers Association.

Buying used is more than just getting a lower price.

To get the best used model, a buyer has to do some soul-searching about what kind of vehicle he or she needs, decide on how much can be spent, and research which models have a reputation for holding up well.

After that, the shopping, test-driving—and purchase—can get under way.