Selling your car online can be an easy and quick way to offload it, but if you’re not careful, it can put you at risk of being scammed.
If you’re selling privately, the process would involve dealing with strangers who may not have the best intentions. Car owners are left wondering how safe it is and what steps they need to take in order to protect themselves from fraudsters.
This article will cover the steps involved, the pros and cons of selling cars online and the best practices to ensure a safe and smooth sale.
Selling Your Car Online Step-By-Step
Selling your car can be a stressful process, but the internet seems to have made it easier in some ways.
In general the process will look like this:
- Price your vehicle- Before you even start selling, you need to know how much your car is worth so you can price it accurately. This is made simple with many dealerships offering free valuations online. Try it for yourself here.
- Decide on your method of sale- Do you want to sell it privately (i.e. by listing on Gumtree, ebay, Facebook Marketplace)? Or would you prefer to go to a dealership? Private sales generally fetch higher prices, but selling to a dealership is almost instant and much safer.
- List your vehicle- Assuming you decide to sell privately, you will need good photographs of your car to advertise it on your selected platform along with details like make, model, year, mileage and so on. Don’t forget to put an appropriate sale price. Overpricing and underpricing will often lead to loss of time or money or both.
- Negotiate with buyers- Your ad is up, what next? Well, in good cases buyers will soon contact you and then the negotiation process will begin. Once you’ve both come to an agreement, the transfer process will commence. Some sellers will take a deposit at this point.
- Prepare all documents- Depending on where you are, you will have to adhere to state regulations. In Vic for example, this includes preparing your roadworthy certificate, transfer form and a copy of your registration renewal.
- Complete the transfer– Decide on how you want to be paid. Some people will opt for an instant bank transfer so that they get the money straight away. Don’t forget to clean your car and take all personal belongings out before handing over the keys!
*Take note that if you are selling to a dealership, steps 3-6 are not applicable. Dealerships will buy your car for cash and take care of all the necessary paperwork. In many cases, they’ll even buy cars that don’t have a roadworthy certificate, or are under finance.
Pros and Cons of Selling Your Car Online
Now we get to the actual pros and cons of the online sales process.
Pros of Selling Car Online
- Selling a car online can be convenient and efficient, as you don’t need to spend time or money on marketing your vehicle.
- You can reach a much larger audience online. You have the potential to get a higher price for your car by having more people view it.
Cons of Selling Car Online
Selling a car online also comes with certain risks, such as the potential for scammers to target you.
- Trusting in an individual or platform can be a risky situation. The buyer may not have the best intentions, the payment method may not be legitimate, or the buyer may not even show up.
- Online platforms may charge a small listing fee.
Best Practices For Selling My Car Online
There’s no doubt that selling used-cars online is becoming increasingly popular.
That said, to ensure a safe and smooth sale of your car online, there are certain best practices you should follow including:
- Advertise on trusted websites to attract serious buyers — for example, websites with verified reviews and ratings.
- If you choose to sell privately, profile the buyer and ask for proof of identity or other documents such as a valid driver’s licence.
- Keep a record of everything- especially your interactions with potential buyers.
- Choose car dealerships which are licensed and have good customer reviews.
- Ensure that the payment method is legitimate — verify that it is from a secure source before handing over your car’s keys.
- Meet in a public area and avoid meeting in your residence. Some people choose to meet at a Vicroads office so they can complete the transfer there and then.
How to Decide Between Selling To a Car Dealership or On Platforms
When it comes to deciding between selling a car through a car dealership or on platforms, it ultimately depends on your own preferences.
Selling On A Platform (Private sales)
If you’re looking to maximise the value of your car and you have some time on your hands to organise roadworthy checks, negotiate with buyers and prepare all documentation, then selling through an online platform might be the way to go.
It will take more of an effort, and there’s more risk involved but it could pay off in better sales prices compared to selling to a car dealership.
Selling To A Car Dealership
On the other hand, if you want convenience and as little involvement in the sale process as possible, then a car dealership may be the best option for you.
Selling to an experienced used car buyer can lead to almost instant cash with minimal effort. Some even offer competitive rates and throw in services like picking your car from where you are for your convenience.
But what are online car buyers and how are they different from your traditional dealerships?
A Better Alternative: Online Car Buyers
Online car buyers are a new category of car dealerships that use tech to create a more seamless and cost-effective process for sellers.
They are a great alternative for Australians who want to sell their cars quickly and without any fuss. Sales can be completed within a day or two without sellers having to leave their house!
Here are some of their benefits:
Seamless and convenient: The entire process is completed online, wherever you are. This means you don’t have to visit a dealership in person- saving you time and hassle. Most will even come to you to get your car inspected.
Competitive rates: They offer more competitive pricing due to access to pricing information from multiple sources allowing them to compare prices with other dealerships.
Transparent: Online car buyers are typically more transparent than traditional dealerships. They often provide detailed information about the condition of your car, its history, and any issues that may affect its value. This can help you make an informed decision about whether to sell your car and for how much.
Overall, online car buyers offer a convenient, competitive, and transparent way to sell your car quickly and easily, making them an excellent alternative to traditional dealerships.
Conclusion
Selling your car online does not have to be a daunting experience if you are aware of potential risks and take the necessary precautions.
That said, if you want to sell your car the safe, quick and hassle-free way, Carhops promises excellent service and fair prices including full payment by the end of the day*.
Get a free instant valuation and find out how much your car may be worth!
*Payment is completed upon inspection of the vehicle
