Selling a used car! How to get the right price
Used cars have certain typical characteristics that make buying and selling used cars different. Used cars are available across varied spectrum of age, mileage, condition, technology, etc.
Before starting your car selling process you need to know, the factors that impact the price of a used car and accordingly price the car for sale.
The price of a second hand car depends on the five key factors:
1. Age of the car
2. Condition of the car
3. Mileage (kilometers the car is driven)
4. Accident History
5. Demand and supply of the model in your local market
Age of the car is the most important factor that determines the price of a used car. The price of the old car drops with age even if it’s not driven even a single mile, because, with age the car becomes less desirable for a prospective buyer.
So, if you have a 3-year old, zero kilo-meter driven, don’t expect to get a price of a 1 year old car. Having said that, the car will surely fetch a better value for its condition, mileage and of course the car is non-accidental and ideally it should sell faster.
Condition of the car, kilometers driven and accident history would then determine whether your car gets higher end of the price band or the lower.
Demand-Supply: If your car is in low demand or is in high supply relative to demand in your local the market, the price you get will be relatively lower. Cars with good brand image, low maintenance cost, good fuel economy enjoy good demand and hence good resale value.
Steps involved in getting the right price for your car:
a) Assess and rate the condition of your car (Excellent, Good, fair, Poor, etc)
b) Research demand for the car (Hot Selling, Medium, Slow Moving, etc)
c) Research the price of car online, call up couple of used car dealers, etc
d) Price is competitively. Your car is competing with hundreds of other used cars in the market, including cars for sale by other individuals, used car dealers, new car dealers, etc.
e) Let potential buyers know that you want to sell your car, highlight the positives (Kilo-meters driven, service history, etc, on the internet sites (free classifieds like Olx, Quickr), your residential area, office, friends and relatives.
You know your car the best. If you have done your homework, you have priced it right, you can close the sale fast.
Once you have finalized the sale, the next important step is payments. Payments can be tricky, and buyers can exploit your softer side. In our next article we will highlight the payment pitfalls you can encounter at the time of actual transaction and explain how to overcome them.
Read how to ensure the payments are safe and secure