Selling a car to a dealer in Australia

Tips For Selling Cars To Dealers

Dealers are individuals, partnerships or companies registered and licensed as car traders. Dealers in Australia will save you from the hassle of privately selling or exchanging your car. If you are looking for a quicker and more secure way of selling your vehicle, contact a dealer in your locality.

They buy used cars from the public and revamp them for re-sale. You should never forget that choosing to sell your car to a dealer and not privately is akin to making a compromise between what is convenient and what is profitable.

This article highlights: what you need to know when preparing yourself to sell your car in Australia, the process of selling your car to a dealer, and the benefits and downsides of selling your car to a dealer.

Getting Ready To Sell Your Car

Preparing yourself with the correct information and appropriate documentation before contacting potential buyers sets you up for success. Some of the things you can do in advance to make sure you get a good deal on your car include:

• Understanding applicable laws and regulations when selling a vehicle in Australia

• Preparing ownership documents as well as the vehicle repair and service report

Understanding applicable laws and regulations

Different state agencies or departments implement rules for selling or buying cars in Australia. Some states require individuals selling cars to undertake vehicle roadworthy tests and obtain a roadworthy certificate, while some do not have these requirements. Others will charge car sellers and buyers transfer and duty costs, while others do not levy such fees.

To avoid any pitfalls when selling your car in Australia, you must understand and comply with the rules and regulations in your state.

Generally, these rules give guidance in the following areas:

• Transfer and motor vehicle duty fees to facilitate vehicle transfer registration

• Obtaining a roadworthy certificate

• Transferring registered and unregistered vehicles

• Submitting a notice of disposal

• Completing vehicle transfer form

Preparing vehicle paperwork and accessories

Having clean paperwork and extra accessories like key fobs and remotes makes it easy for you to negotiate a better deal with car dealers. Your car servicing and repairs history report is an integral part of the paperwork that your potential customers would want to check.

You should make sure you put together the necessary car documents and accessories, including:

• Registration documents

• Ownership documents, including the title

• Roadworthy certificate

• Key fobs and remotes

• Car servicing and repairs history report

• Owner’s manual

• Current driving license

• Finance payout letter if your car has finance on it

Preparing Your Car For Sale

You should only put up your car for sale when you are sure it is presentable and will be appealing to potential buyers. Your car is ready for purchase when:

• You have cleaned it

• You have done the necessary repairs

• You have done some research and know its worth

Washing your car

Clean your car well and wax it for a sparkling look. Even though dealers are always willing to clean the car, doing it yourself makes it more appealing, and you can confidently negotiate the price.

Repairing your car

You need to fix minor damages and cosmetic issues on your car before presenting it to a dealer. Usually, dealers will revamp the car before availing it for resale. However, you should not ignore any apparent damage that needs fixing as the dealer can point them out and demand a discounted price.

Valuing your car

There are free online car valuation tools that you can use to estimate the value of your car. You can also use these tools to find prices that dealers are paying at auction for similar vehicles. This is important because dealer offers are primarily based on the fees paid for similar vehicles at auctions.

Generally, the following factors will determine the price of your car when you are selling to a dealer:

• Number of previous owners

• Whether they already have similar vehicles on their lot

• The condition of the car

• Is any money owed on the vehicle

• Mileage on the odometer

• Collisions and accidents

• Inspection compliance

If your car model is popular and you have taken good care of it, you will be able to sell it at a good price. But if your car has seen better days and no longer starts smoothly, do not expect much from it. In other words, your car is worth its current shape and condition.

Selling Your Car To A Dealer

Dealers offer three alternative ways to unload your car:

• Cash payment: Dealers will pay you cash on the spot if you accept their offer.

• Consignment: A dealer will offer to sell your car on your behalf through consignment.

• Trade-in: If you want to upgrade your vehicle, dealers will provide you with sound car deals for trade-in.

Steps for selling a car to a dealer

The process of selling your car to a dealer is simple and can be done very fast through the following steps:

• Have a phone conversation to discuss what car model you are selling and its condition

• Alternatively, fill the dealer’s online form and wait for them to call you back

• Where possible, the dealer will arrange to visit your yard or ask you to send pictures

• Valuation of your car is done

• You negotiate and agree on the best price

• The dealer will provide you with an offer in writing

• You sign the offer

• Payment is made through the option that is convenient to both of you

• The dealer picks the car

Sometimes you may pull into a dealer’s lot without prior communication. Your car will be subjected to inspection, test drive, and vehicle history check before you are given an offer. The offer may include cash sale, trade-in, or consignment. Most dealers are flexible and willing to work with your preference.

Finding A Reputable Dealer For A Good Deal

Most reputable dealers understand that selling a car yourself can be very tedious. So, they try hard to make it simple and pain-free for you. However, some can be unscrupulous and leave you with a bad experience.

Before you contact or pull into a dealer’s lot, make sure you have done your research well. Reach out only to dealers who are registered and licensed to buy and sell vehicles in your state.

You can find a good deal if you spend time and effort finding a dealer who has a few or none of the vehicle models you are trying to sell.

Some of the minor damages you can fix at affordable cost include:

• Door dings

• Scratches on the body

• Cracked windshields

• Lights

• Car starter

Negotiating The Value Of Your Car

Dealers give different offers for similar vehicles. Negotiate every offer you receive and compare them before accepting and signing. Do not scare away potential buyers during negotiations. Be realistic and negotiate for a price that reflects the condition of your car. Online car valuation tools should guide you not to settle for a bad offer.

Receiving Your Payment

Besides knowing how much you will receive for your car when you sell it, also know when and how your money will arrive. When you sell through a dealer, payment is made using the following options:

• Cash: In most cases, dealers want to make the process as fast and convenient as possible. So, they will pay you the full amount in cash on the spot without requiring you to trade it in or sell it via consignment.

• Cheque: While some dealers may take 24 to 48 hours to write you a cheque, it is possible to walk home with a cheque the same day you agree to an offer.

• Money order

• Bank transfer

Payment can sometimes take days if you owe money on the car because the dealer has to wait for the title from your lender. Take care when settling on a payment option, as this can be used to scam you. To secure your payment and car, consider doing the following:

• Confirm the authenticity of the cheque and money order with the issuing bank

• Confirm whether the buyer has enough money in the bank and if payment is by cheque or money order

• Do not rush the transaction, as an eagerness to sell can cost you

• Pull out of the deal if you have doubts

• Always prioritise receiving payment in cold cash

Benefits Of Selling To A Dealer

The following are benefits of selling your car to a dealer:

• Selling your car to a dealer is easy and convenient as it saves you from the hassle of finding a buyer privately

• You get instant cash, which is a good thing if you were selling to cater for an emergency expense

• The dealership will take care of all the paperwork and save you from the headache that comes with undertaking this process

• You do not need to undertake thorough cleaning or repairs on your car because dealers revamp used cars before reselling them

• Dealers are always in the business of buying and selling cars and therefore always look for cars to buy. They provide a ready market for people looking to sell their cars fast and conveniently.

• Payment options at dealerships are protected and save you from the risk of possible swindling associated with selling privately‍

Downsides Of Selling To A Dealer

Even though selling your car to a dealer has many benefits, its disadvantages may make it undesirable.

Here are two of the cons associated with selling your car to a dealer:

• You will get less money for it than if you found a buyer to sell your car privately‍

• Some dealers may not be reputable

Selling Via A Dealer Is Fast And Convenient

Selling a car to a dealer in Australia pays if you understand the selling tips such as the ones provided in this article. Make sure you prepare yourself and the car for the selling process before contacting potential buyers.

If you want to sell your vehicle effortlessly in Australia, a dealership is the way to go. You only need to ensure that you do good research to find a reputable dealer that will give you the best deal.