Tips to Successfully Sell Your Vehicle Online

I recently sold my brightly-colored, subcompact car.

Wait, what in the world does that have to do with financial coaching?

You're right, this is not a typical financial-oriented post. But, perhaps a time will come when you decide to sell your set of wheels. Selling a vehicle can generate a chunk of new income, and my aim as a coach is to help my clients maximize their income and how they use it.

Back to the car. I thought about trading it in at a dealership, but I knew it would sell for a higher price if I would sell privately. So, I listed it on Facebook Marketplace. I expected it would take at least 2 or 3 weeks for the vehicle to sell. 😫

Instead, the vehicle received over 2,600 clicks and successfully sold for my full asking price within 2 days from when I posted it on Marketplace. 😲

Maybe I got lucky. Maybe the buyer really wanted the vehicle and knew they needed to move quickly to secure it. Maybe it sold so quickly because, as a subcompact car, it was a lower price compared to other vehicles on Marketplace. All that said, I'd also like to think part of the reason for the quick sale is that I carefully considered the details of how I'd sell it.

Many prospective buyers are willing to purchase a vehicle from a private seller in the hope they get a reliable vehicle for a lower price than they would pay at a dealership. Plus, the seller benefits by getting much more than what a dealership would pay to take the car off their hands.

There are numerous online platforms you can use to list a vehicle for sale. I chose Facebook Marketplace since I could create a sales listing for free.

If you're also thinking about selling a vehicle online, here are some tips that helped me find success in selling my vehicle.

Prep car. 🫧 🧼

Before listing the vehicle, invest some time into making the vehicle look appealing to potential buyers. Thoroughly clean the outside and inside of the car. Take care of any obvious yet easy needs for the vehicle. For instance, if the vehicle is due for an oil change and tire rotation, it's likely beneficial to take care of those. For me, I replaced a broken key fob (which was surprisingly inexpensive for my vehicle) and replaced a busted windshield visor. Taking care of "easy" items can appeal to a buyer and communicate that the vehicle is cared for. If you have a code reader available, I also suggest seeing if there are any codes that pop up when you plug it into your vehicle, and if within your means, address those codes (don't just clear the code without addressing the issue).

Take quality photos of the vehicle. 📷

While you don't necessarily need to hire a professional photographer, take appealing photos of the inside and outside of the vehicle. I also recommend taking photos of damaged parts of your vehicle to include in your ad. Your buyers are likely to see signs of damage anyway when they come for a test drive, so you mind as well be upfront about it.

Consider your pricing. 💵

This is one of the most important parts of the sale process. If a vehicle is priced too high, it is likely to sit on the market longer, and the longer it sits, potential buyers may wonder if there is something wrong with the vehicle. If you price the vehicle too low, buyers might also think there is something wrong with the vehicle.

My personal strategy was to look at the estimated Kelley Blue Book (KBB) "private sale" number and put my asking price right in the middle of the range. I also researched vehicles of a similar make, model, year, and mileage, and selected a price based on those listing, which also corresponded to the KBB value.

I also recommend placing yourself in the buyer’s shoes. Ask yourself, "If I was buying this car, would I pay that price?" It's also worth keeping in mind that the buyer will need to pay sales tax, registration fees, notary fees, etc. on top of the sales price. These costs will add hundreds of dollars to the transaction, so it may be worthwhile to consider if the final price seems too high for the buyer.

If you suspect major repairs are needed on the vehicle, it is best to get an estimate on those repairs before deciding to sell. Depending on the nature of the repairs, this may influence your decision of whether to list the vehicle at a lower price or forgo the private sale altogether and sell to a dealership.

Post an appealing yet honest ad. 📣

Include your photos in your ad. If there are no accidents and the title is clean, this makes a strong selling point. If there is damage or past accidents, it's better to be upfront about the history in your ad so that your buyer knows what they'll be getting into. You may be held legally responsible if the buyer discovers a condition you were not honest about.

Research each person who reaches out to you. 🧐

After posting, a large number of people may contact you. Many will be real people with genuine interest, but some may be scammers. It's important to keep yourself safe. You will want to get a good idea of whether someone seems to be legitimate before agreeing to meet with them. For me, this meant looking into each person's Facebook profile to get an initial gut-sense of whether they seemed to be a real person. If they had only two friends, just opened their Facebook account last month, or didn't have a profile picture, I didn't respond back to them. I also didn't respond to individuals who asked for my phone number, who made an offer before they saw the vehicle, or who asked if I'd be willing to accept a trade.

Honor the commitments you make. ⌚️

It gives a terrible impression to agree to meet someone for a test drive and not show up. It also is frustrating to the potential buyer if they agree to purchase the vehicle, but at the last minute you pull the rug out from under them and sell to someone else. If you have multiple people reaching out to you, I recommend scheduling test drives one at a time. If someone reached out and seemed to be a legitimate person, I let them know I had received their message and had a test drive scheduled, but I would be back in touch with them if the potential buyer fell through. If you're selling through Marketplace, and especially if you regularly sell items on Marketplace, keep in mind that the people you extensively interact with may have the opportunity to "rate" you, and a one-star review can sizably lower your overall Marketplace rating.

Be ready for a test drive. 🛣️

Meet in a public place. Honestly answer the questions they ask you, but don’t feel like you need to explain every little thing they may point at or comment on. I also asked to take a photo of the buyer's driver license to be sure they were legally able to drive before they got behind the wheel. That way, in the event of an accident during the test drive, I would not be implicated for allowing someone without a license to drive.

Offer service records. 🧑‍🔧

You can offer service records in your ad or after the test drive. Either way, know when major maintenance needs such as new tires, brake work, battery replacement, and transmission flushing were last done, and know what upcoming needs the vehicle may have.

Negotiating. 🤝

If a buyer wants to negotiate the price, ask how they arrived at that number. Be ready to dialogue and be open to their feedback, but don't hesitate to share your perspective on why you selected the asking price you did. If you were thoughtful about the price you selected, you're more likely to close the sale closer to that number.

Finalizing the sale. ✍️

In many states, you may need to pay a visit to a registered notary or your local DMV office. Research ahead of time where you'll need to go to execute the transfer. When arriving at the place where you will finalize the sale, be sure to bring a screwdriver to take your license plate with you, and bring the title to the vehicle.

Before scheduling a test drive, expect that they buyer may be motivated to purchase the vehicle as soon as possible. It may be beneficial to meet near an open notary or DMV office to be able to quickly finalize the sale after the test drive.

I also recommend preparing a Motor Vehicle Bill of Sale ahead of time that both you and the buyer sign, and be ready to provide a copy the buyer. A Bill of Sale is not required in all states, but in case there is ever a question in the future, it will be clear when the transaction took place, what the sale price was, and that the buyer accepted responsibility for the vehicle. There are many free templates online for a Bill of Sale.

After the sale, don't forget to transfer the license plate to another vehicle or mail it back to your state DMV office, if required by your state. Lastly, contact your insurance provider to cancel your auto policy on the vehicle. In many cases, the insurer may provide you a prorated refund for the unused portion of your premium, which can then be put toward other priorities in your spending plan.

Although I thought about taking the "easy" route and handing my vehicle to a dealer, I am very glad I instead went through the efforts of selling privately. Although it does take a bit of work to sell the vehicle, I believe the rewards are worth it. Happy selling!