Report by Desmond Sanborn, Founder and CEO, Sell2Dealers
Considering selling your car? There is no better time than now. According to new data by Moody’s Analytics, the pandemic-driven, global vehicle supply chain shortages have caused prices for used cars to increase by 65% over the past two years.
In Australia, new car delays and surging used car prices continue to make history. Insights released by PriceMyCar reveal the estimated average wait period for a new car has risen to 155 days. NSW residents are waiting 170 days on average and WA residents are waiting the longest at 317 days.
Whilst this car supply chaos is of great frustration to those in the market for a new car, they present a lucrative opportunity for anyone looking to sell their used vehicle.
Here are 5 easy tips on selling a car from a used car expert:
1. Know your car’s worth
In order to strike a deal, you will firstly need to know what your car is worth. Start by asking yourself about the condition of the car, model, make and mileage. Once you have this data, there are several online platforms including redbook.com.au and carsguide.com.au that will give you an instant value estimate – all you need to do is enter a few details on your car.
Another way to determine your car’s value is by seeing what prices other cars of the same make and model are fetching on online marketplaces like Facebook and Gumtree. In these current conditions, prices can fluctuate so make sure to gauge the most up to date price before selling.
2. Take your car to a mechanic
In terms of repairs, there are small things you can fix yourself that go a long way in a sale. Buying new seat covers, hub caps, replacing worn floor mats and painting over scratches are cost-effective and worth the effort. Squeaky brakes, damaged tyres, cloudy headlights and burned bulbs are known to deter potential buyers. It’s best to have a mechanic inspect it and tell you what to fix and what’s worth leaving for the next owner. Be careful not to go overboard with repairs as it won’t necessarily guarantee a higher sale price.
3. Make your car look a million dollars
Giving your car a makeover is a simple and highly effective strategy to secure a higher sale price. In fact, dealers may assume any dirt on a car is covering imperfections and make you a lower offer.
You can simply take it to a car wash café, professional detailer or clean it yourself. Remember the cleaning products you buy might equate to the same price of getting it professionally washed.
4. Take good photos
You will need a series of high-quality photos of your car to advertise it online. This can be done easily on a smartphone. Make sure your car is in front of a well-lit, minimal background like a lawn, a garage or a driveway and don’t have any clutter around it. You’ll need photos of the car’s primary features – body, interior, odometer, bonnet and rear. It’s recommended to do this straight after the car is cleaned so you can capture it looking its best. Sell the dream!
5. Selling privately vs to a dealer
Selling your car privately versus to a dealer come with their own sets of pros and cons.
Selling privately: You are more inclined to secure a higher sale price selling privately than to a dealer. If your particular car is in high demand, there may be people willing to pay more than market price. However, this is a more laborious process as it involves organising face-to-face inspections and negotiations with potentially many prospective buyers before you find the right one.
Selling to a dealer: Selling your car to a dealer is the easiest and most low touch way to offload a car. Traditionally it has involved a lower sales price due to a dealer taking a cut of the profit. However new tech is changing this through digitisation of the entire seller to dealer process. The virtual selling process eliminates the cost of holding your vehicle at a dealership, allowing you to negotiate a better price.
Online used car platform Sell2Dealers enables you to list your car for registered dealers around Australia to make an instant offer. Once you have signed up, you can let the dealers bid away. After the sale is made, all you need to do is hand over the keys – the dealer takes care of the rest.
The beauty of digital platforms is that you can advertise your car on both routes and see who makes you the highest offer!
Desmond Sanborn is the Founder and CEO of Sell2Dealers.