How to Sell a Used Car

1. Car Preparation

A little time spent now can be worth hundreds of dollars on the sale price. Imagine yourself as the buyer and ask what’s important:

• Is the car clean - does it appear looked after?
• Has the car been serviced recently?
• Are their receipts to show any work or servicing that's been done?
• Is the asking price reasonable for the make, model, age and condition?

Well if that's what you'd like to see as a buyer, then that's what you need to do to prepare the car for sale.

Car Cleaning

It's pretty much common sense but if you need a checklist there's a run down on cleaning the car on the AA website. Just follow this link.
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The main point is to put that extra effort into getting into all those hard to reach places that often get missed on the routine clean.

If you can afford it, getting the car groomed can yield results that would otherwise take you hours and hours with the bucket and sponge. You’ll find car groomers in the yellow pages.

Car Service (history)

Dig out all the receipts you have for any past servicing work or maintenance. If you can afford it get the car serviced. Buyers will feel reassured if you show you’ve had the car serviced regularly or had the cam belt replaced for example.

Setting your Price

Now comes crunch time – how much is the car worth? How much should you ask for it? Be realistic – is it in tip top condition, or at best "average". Check out similar cars on the AA Carfair website and start to get a feel for the price range for car of the same make, model, age and condition. This range is going to become your negotiating range.

For just $19.90 you can get an AA Vehicle Valuation which will give you an approximate fair market value.

• Vehicle Valuation

Now decide a) what your asking price will be and b) the minimum amount you'd accept. If you've got plenty of time and can afford to wait for the best deal then your prices are likely to be higher than if you need to sell the car quickly.

Warrant of Fitness

When selling a car the Warrant of Fitness (WOF) has to be less than 30 days old. Click on the links at the bottom of this page to find AA locations to get a WOF.

2. Listing your car for Sale

Information

You're going to need two types of information a) facts about the car b) features that will appeal to buyers.

Facts include: make, model including number of doors, year, body type (sedan/coupe/hatchback etc.), engine capacity, transmission (manual/automatic), fuel type (petrol/diesel), mileage, general condition and colour. Also information like NZ new or imported, number of drivers, date next WOF due, date next registration due.

Features that will attract buyers include, for example: four new tyres two months ago, serviced regularly by manufacturer, tow bar and roof rack included, never damaged etc.

Above all be honest, and that means include information that a buyer will consider important so if there's some damage or scratches describe them and illustrate with a photo.

Photos

Presenting your car well will improve your chances for a sale. Clean the car inside and out then take photos of the exterior and interior.

Tip: modern digital cameras can now take very high quality, very large e.g. 3MB photographs. This quality is not required for the web and will take ages to upload. So, when taking photos of the car use the "basic" quality setting and "small" size format.

If you're ready to list your car for sale then click here.

• List for sale

3. Selling your car

Trade Safely

Read our Trade Safely tips on how to avoid potential scams and hoaxes.

Viewing

Position the car so that the prospective buyer can see round the outside and can easily get inside. Have any documentation about the car like service records to hand and be ready to answer any question truthfully. Stand back and allow the buyer to inspect the car in their own time.

Test Drive

If they ask to take the car for a test drive be sensible. Ask to see their licence. BE SURE that your insurance covers them to drive your car in case there’s an accident. If you feel safe accompany them as a passenger. Or, you can consider letting them take your car for a test drive if they give you the keys to their car as security.

Comprehensive Inspection

Many buyers will want to have the car inspected even after a test drive. The AA provides this service. You can speed the process up by having information about the AA’s inspection service. Even better, you can have the car inspected as a seller so that you can show prospective buyers the inspection report.

Negotiating

OK. The buyer’s seen it, driven it and had it inspected and now wants to negotiate with you to buy it. Whilst you’ve set an asking price they will probably offer you less. It’s up to you to decide how firm you are on price or whether you think their offer is reasonable.

Deposits

If you agree a price then usually the buyer will offer a deposit of several hundred dollars.

You should write out two identical receipts that describe the car, specify the agreed sale price, the amount accepted as a deposit, the date by which full payment must be made and any other conditions that you may have agreed. Both buyer and seller should sign both receipts.

Payment

Before you hand over the keys, you'll want to make sure you’ve been paid. The buyer could directly deposit the money into your bank account; or for small transactions pay by cash. The most usual payment method is by Bank Cheque. This is a cheque, issued by the buyer's bank, for the purchase amount, to be paid out of the bank’s accounts rather than the buyer's accounts. This is effectively cash and will be honoured by the buyer’s bank.

DO NOT accept a personal cheque from the buyer. They may not have adequate funds so that when you attempt to cash the cheque it bounces.

4. Documents

Purchase receipts

Whether for deposit or for the full amount; prepare two copies of any receipt. Describe the car, the purchase amount, the date of the purchase, the name and address of both seller and buyer. Get both seller and buyer to sign both copies.

Change of Ownership

Registration of ownership simply defines who is responsible for the car, in particular for paying licensing fees and fines. As part of the process of purchasing a car both buyer and seller must complete change of ownership documentation. This can be done online via the NZTA website. Alternatively, the seller completes the Certificate of Registration form (or an MR13A); the buyer completes form MR13B. These forms are available from an NZTA agent like AA centres or AA WOF testing stations. The buyer should complete and submit MR13B and get a receipt to show you before you, the seller, hand over the keys. They can do this before the purchase is completed and it means that they take responsibility for any fines and fees. More information can be found on the NZ Transport Agency website.
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