Step by Step Guide for Selling a Car on Craigslist

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Listing a car on Craigslist is easy, but selling it is another thing. Anyone can create a post, but it takes careful thought and planning to make an advert for your car really shine. Follow these simple steps and you will give your car the best chance of being sold in no time.

1. Make sure your paperwork is in order

Before even starting on the question of selling, it’s important to make sure you have all your paperwork straightened out. At the end of the day selling a car is about transferring legal ownership from one person to another, so there are boxes that need to be checked. Once you have all the legal paperwork in order you don’t have to worry about bureaucracy slowing you down during the sale process.

Image Credit: Kars For Kids / flickr

Check the Vehicle Title

Is the vehicle title in your name? It might sound like a stupid question, every name on the vehicle title must sign for a successful transfer, something that can trip you up if there’s an incorrect or out-of-date name on there. You’d be surprised how many car owners still have obsolete names on their vehicle registration paperwork. Maybe it’s a maiden name, maybe the person who sold it to you is on there somewhere – it’s worth checking.

Prove the Car is Clear of Liens

If you ever took out a loan on your car, something you might find when looking into the vehicle title is that the bank who financed the loan is listed on the title. Usually when the loan is paid off the bank sends out a new title cleared of the bank, or lienholder, but some banks require that you specifically request a title transfer yourself. This may involve getting a Lien Release form from the bank to prove that the car is clear of liens.

State-by-State Requirements

Unfortunately, selling your car isn’t standard across the country. Different states have different requirements when it comes to procedure and paperwork. Check your local state’s DMV website for a full breakdown of what you need. Here are a couple of examples of paperwork your state might require:

• Bill of Sale: this is essentially a document that tracks all the important information about your car sale. It includes details on the buyer, the price, money transfer details – anything that could be legally pertinent to the transaction. Even if your state doesn’t require a bill of sale, many people find it a useful way of keeping all the details of the sale in one place.

• Damage Disclosure Statement: this form contains details of any damages to the vehicle at the point of sale, so that both buyer and seller are aware of them. Only some states require this, and usually only applies to cars that are up to five years old.

• Odometer Disclosure Statement: this is a common document in most states, stating the mileage on the vehicle.

2. Prepare your car for selling

The difference between listing something and selling something is in how you present it. A new showroom car is enticing because of its shiny, polished body, clean interior, and that new car smell. You might not be able to provide a new car, but you can sure have a good go at making it look as good as possible to convince any would-be buyers.

• Wash and wax the exterior: at the bare minimum, give the outside of the car a good wash and a wax. Clean the wheels of any dirt and make the paint job and windows shine. You want to make sure the first impression buyers get is a good one.

• Vacuum the interior: take up all the carpets and give them a thorough cleaning. Get in all the crevices of each seat to make sure long-lost crumbs or loose change aren’t hiding there.

• Wipe down the dashboard: dust easily builds up on the console, dashboard, and steering block, give it a good wipe down with a damp cloth.

• Clear out the trunk: it may sound obvious, but make sure there isn’t anything you don’t want to sell lingering in the trunk, then vacuum thoroughly there too.

• Fix anything that needs it: fix anything you can fix yourself (e.g., loose screws, light bulbs, missing furnishing).

3. Settle on a competitive price

Giving your car a once over to make it look nice and shiny will start you thinking on what you can sell it for. Coming up with a price for a car is no exact science. It comes from a combination of market research, historical information, and clever marketing.

Car Value Estimators

The first port of call for most sellers are websites that generate value estimates for secondhand vehicles. There are plenty of sites out there that give you a rough estimate of a car’s value based on a VIN, license plate, or the make, model, and year. However, you shouldn’t rely entirely on these kinds of sites. They’re usually linked to sales sites, so they have a vested interest in your liking their valuations. Also, they generate estimates from a big data set of values, resulting in a value that is potentially lower than what your specific car could be worth.

Look at the Market

Prices are determined by the market, so it’s worth doing some research on what is selling in your area. Boot up Craigslist and look for your make and model, or for vehicles of a similar age. Just like with the online estimate, those prices might not be exactly right for your specific vehicle, but it should give you a ballpark. Listing your car for much higher-than-average prices in your area is unlikely to get it to sell and listing it much lower is doing yourself a disservice.

Focus on Your Car

It all comes down to the specifics of your vehicle. Is there anything about it that makes it stand out from other similar cars? This might be an advantage that helps you sell it for more (e.g., recently refreshed paint job, new tires). It also could be a problem that drives people away (e.g., cracked windshield, stained seats). Some details can be advantages or disadvantages, depending on how you market them (e.g., decals or other modifications). Bear all of this in mind when you look at comparative prices online and on Craigslist.

4. Write a winning description

Buyers want to know everything they can about their purchases, especially if those purchases cost hundreds or thousands of dollars. When writing a description for your car, be as informative and transparent as possible. Basic things that every listing should include are:

• Year, make and model

• Engine size

• Manual or automatic

• Color (exterior and interior)

• Mileage

• Basic features and their condition (e.g., ABS, windows, door locks, air conditioning, cruise control, air bags, CD/cassette/MP3 player, etc.)

• Any notable features (e.g., tinted windows, auto headlights, modifications etc.)

• Any cosmetic damage

• Any repairs needed

• Why you’re selling the vehicle

• How many owners the car has had

• How long you’ve owned the vehicle

• What you love about the car

• Price and purchasing details (e.g., cash only)

5. Attach quality pictures

There’s no point spending energy cleaning the car up if you’re not going to take great photos of it for the listing. You don’t have to be a professional photographer or use an expensive camera - most smartphone cameras are high spec enough these days. Photos are what stops a buyer from scrolling and entices them to learn more, so they’re even more important than your description.

• Pick a good day: a bright sunny day will make any car look a whole lot better.

• Use a neutral background: showing your car in a messy surrounding will make the car seem dirty and messy too.

• Take lots of photos includes lots of angles of the exterior, front to side to back. Take pictures of the interior from outside, and from inside the car. Include close ups of any noteworthy details, such as damage or selling points.

• Blur out your license plate: you can use computer software or just tape some cardboard over the plate while you photograph.

6. Dealing with Your Buyers

Once you’ve got your listing together it’s time to publish the post. But selling your car doesn’t end there. If you’ve followed all these steps, be prepared to receive a lot of calls and emails from interested buyers.

• Prepare for Negotiation: Anyone shopping on Craigslist is there to find a good deal. When setting the price of your car, it’s important to expect buyers to haggle it down right from the start. Before you set the final price, make sure you’d be comfortable selling for 5 to 10% less. This might mean raising the price to slightly more than what you’re expecting to get, without overvaluing the car.

• Drive up competition: in return for buyers haggling the price down, be clear that there are lots of other people interested in buying (which will probably be true). Buyers who are serious will raise their offers to beat out the competition.

• Be safe: when you eventually meet drivers, make sure you do so safely. Pick somewhere public you know well, but probably avoid your house or business. When it comes to a test drive, set out conditions you’re most comfortable with (i.e., whether you stay in the car with them or not).

• Cash only: one rule that always applies to Craigslist. It’s always safer to accept cash on receipt unless the cash value is multiple thousands of dollars and you’re sure about the buyer.