Selling a used car

Getting the best price and a quick sale

Get a new MOT if there's less than three months on the current one

Get a new MOT if there's less than three months on the current one

Getting your car ready for sale is essential if you want to sell it quickly and get the best price.

Unless you're selling something very rare or unusual, it's likely that you'll be competing for buyers' attention against many similar cars - presentation, mechanical condition and service history can all make the difference between an easy sale and long drawn out affair with you having to drop the asking price every week.

Before you advertise the car

  • Clean it inside and out and make sure that it's generally tidy
  • Repair any minor paintwork damage or simple mechanical faults
  • Get a new MOT if there's less than three months on the current one. Consider a new MOT anyway as this says a lot about the car's basic condition.
  • Remember that if your vehicle has a serious defect and is unroadworthy, you could be breaking the law by selling it, if you haven't described it accurately.
  • Consider a full, professional valet service - it'll save you time and can really make a difference

Now you're ready to market your car, so here are some tips for a stress–free sale.

Tips for a smooth car sale

Price

  • price your car realistically - particularly if you want a quick sale
  • check the prices of similar cars in popular classified ad magazines or online

Finance

  • you can't sell a car with outstanding finance
  • this includes outstanding hire-purchase or conditional sale agreements
  • if you do want to sell, get the finance company's permission or settle the finance first

Claims

  • don't make false or reckless claims
  • take care how you word your advert - lines like 'first to see will buy' won't convince anyone

Facts

  • describe the car as accurately as possible
  • in adverts, stick to facts that will interest potential buyers
  • make sure you quote the year/number plate, how many months are left on the MOT and where in the country you're located
  • be aware that thieves may contact you pretending to be potential buyers.  If you give them details of the car like the VIN number over the phone, or share personal details they could use the information to create a cloned advert.   Genuine buyers will be happy to come and view the vehicle and check vehicle details for themselves.

Condition

  • state the car's condition clearly in adverts and on the receipt
  • if it's being sold for spares only, or requires substantial repairs, say so
  • include this information on the receipt once you've agreed to sell

Documents

  • have all documents and history to hand including MOT certificates and service records
  • don't let buyers make copies or take photos of vehicle documents
  • keep receipts for any work carried out while you've owned the car
  • a fully-stamped dealer service record adds value if you've got one
  • don't forget to hand over all relevant documents when you sell

Test drive

  • take the buyer's contact details when arranging for them to come and view/test drive the car - name, address and land line phone number.  A genuine buyer will be happy to do so and will understand if you call back to confirm arrangements and check the number given. 
  • ask the buyer to bring and show you their driving licence if they're expecting to test drive the car.
  • insist that the buyer comes to see the car at your home address - a genuine buyer will be happy to do so. 
  • check that the buyer is insured to test drive the car. Your own insurance may cover you. See our test drive tips for more advice on insurance cover 
  • don't be a victim of car theft
    • always accompany prospective buyers on a test drive 
    • if you change seats part way through, take the keys with you and hand them over when you get back in the car 
  • there's safety and confidence in numbers - ask a friend or relative to accompany you while the buyer is viewing the car and on the test drive

Haggle room

  • build in a margin for haggling - the buyer will have the satisfaction of negotiating you down while you still get close to the amount you want

Receipt

  • provide a 'sold as seen, tried and approved without guarantee' receipt
  • print off and use our buyer's/seller's contract
  • bear in mind that providing a 'sold as seen' receipt doesn't affect the buyer's legal rights - the car must match any description you give in writing or verbally in the course of the sale.
  • you cannot use a 'sold as seen' receipt to cover the possibility that the car may be unroadworthy in some respect either.  The law is clear - it illegal to sell a car in an unroadworthy condition.

Get paid

  • beware of emails from abroad offering to buy your vehicle without seeing it, and offering to make overpayments. Also beware of bogus ESCROW or shipping companies recommended by the buyer.
  • don't let anyone drive your car away until you're satisfied that you've been paid in full
  • cash - consider arranging to be handed the cash at your bank - or an online bank transfer are the safest way of getting paid
  • bank transfers are quicker these days thanks to the ‘Faster Payments’ system. Customers can make payments over the phone or through online banking all day, every day
  • an immediate bank tranfer can be made using the CHAPS system (a fee is payable).  CHAPS payments are irrevocable
  • ESCROW, where money is held by a third party on behalf of transacting parties is a safe way of receiving payment for a vehicle but you will need to make sure that the company is legitimate.  You can check using the FSA register of payment services firms authorised in the UK
  • if you are given a personal or building society cheque, wait for it to clear in your bank before you hand the car over
  • remember that banker's drafts can be forged - if you accept payment by this method it's important to wait until you're sure the funds have been cleared into your account before hading over the keys.

Successfully sold your car?

Before the buyer drives off into the sunset, draw up a seller's contract to help protect yourself

  • Print two copies of the contract, one for you and one for your buyer
  • Complete the contracts with your buyer
  • You and your buyer should sign and date the contracts
  • Make sure you each keep a signed copy as proof of the purchase

Notify DVLA

You must tell DVLA as soon as possible that you are no longer responsible for the vehicle. It's in your own interest to do so, as you don't want to be landed with any of the new driver's future offences and convictions.

As the seller you will need to complete the new keeper details on the V5C and sign the declaration along with the buyer. It is your responsibility to send the completed V5C to DVLA having first given the buyer the V5C/2 section - their proof of keepership until they receive a new V5C from DVLA.

(10 May 2013)

 

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