When trying to sell a car online, learning how to advertise it is the first step. You won't be able to sell your car if no one knows about it. The Internet is becoming a bigger and bigger outlet for purchasing vehicles. As a seller, you can oftentimes get a much larger bang for your buck selling online compared to more traditional avenues. Although selling a car online isn't a simple process, the advertising aspect can be.
Things You’ll Need:
-Computer with Internet access for research and ad placement
-Car
Step1. Figure out the specifics of your car. You need all the basic information, including the make, model, year and figures such as the mileage and the approximate value. Without all this essential information, it will be nearly impossible to sell your car online.
Step2. Decide on an asking price. Determining a specific price works much better than asking simply for best offers. It lessens the obligatory back-and-forth haggling and makes the whole process more straightforward.
Step3. Advertise for free. There are Web sites that will allow you to advertise your car for free, including Craigslist and Postaroo. Before you move on to paid services, first attempt to sell your car using a free listing.
Step4. Select a Web site that will list your car for sale. If the free listing doesn't work, there are various paid services that will list your car in exchange for a fee. Typically, the success rate using these services is high compared to the free services. Find a Web site with a long history of satisfied customers that has been in the car-selling business for a number of years.
Step5. Track your responses. The car will not sell itself. Even if you are using a paid service, it typically still requires you to interact with potential buyers.
Friday, June 6, 2008
Tuesday, June 3, 2008
Buying a Used Car
One of the first “big deals” in a lifetime is buying your first car. Some people get to relive this joy when you help a child or relative buy their first used car. Here’s a checklist of things you should remember when you go out to buy that car:
Figure out your requirements for the car. How are you going to use it? Getting back and forth to work or school? Transporting just you or several other people as well? Putting on lots of miles or just a few each day? Maybe hauling tools or equipment? Thinking this out should let you define the current mileage level, the size (compact, midsize, SUV, pickup truck), the style (sporty model or more conventional sedan), and other distinctive features required such as four-wheel drive, trunk size, or ski or luggage rack. These are your interests.
Define these interests clearly and don’t waver from them unless you have a chance at some amazing deal on a car that does not fit this profile. When you are looking at cars, it is easy to get distracted by models and types that don’t meet these interests. Define what you want, and don’t budge unless you have a good reason to do so.
This tendency to forget our own interests and get distracted by features and benefits is a problem in all consumer purchases, and sometimes in personal relationships as well. What qualities do you value most in furniture, for instance? If comfort and lasting value are at the top of your list, avoid an overpriced, uncomfortable Italian designer couch even if all the cool people are buying them.
Figure out how much you can afford to spend. If you are paying in cash, can you pay it all now, or do you need to pay it in several payments? If you are thinking of borrowing money for a car loan, visit a bank before you start looking for a car and find out how much the bank will lend you and what the monthly payments will be. Have the bank help you think about what your budget should be and how much you can afford. These become your financial targets and walkaways.
Locate several cars that meet your specifications from one of these:
1. Your local newspaper or auto trader, either in the classified ads for used cars or in the used car ads placed by dealerships
2. Car dealer Web sites
3. Car lots (new and used)
4. Word of mouth, friends, bulletin boards at work or school
5. “Drive-bys”—cars sitting in yards or empty lots that individuals are trying to sell
Car dealers make their money by buying cars at a low price and reselling them at a higher price. So when you deal with a dealer, you are paying more for the car than the dealer did. Sometimes this is good because dealers may give a warranty for ninety days against defects and mechanical work needed. Private sales from individuals may be cheaper to you, but you probably can’t get any guarantee and don’t have anyone to complain to if you discover problems.
Your objective is to find several cars that meet your interests. Your job now is to find out how to get the best deal on that make, model, and year of a car. For example, if you find a 2004 Honda Civic that you like, start looking for other 2004 Honda Civics so you can compare mileage, wear and tear, and quality of other features like the radio, tires, and cleanliness.
Research the “book” value of the car. There are many resources on the market that tell you what any car of a specific make, model, and year should be selling for. These “blue books” often list the average book value, what a car in very good condition might be worth, or what a car in poor condition might be worth. All banks, bookstores, and libraries have them as well. You can also find several Web sites with this information. We particularly like www.edmunds.com
Contact the owners of the cars you are interested in. Go to the used car lots or set aside a Saturday morning and call some of the numbers in the newspaper ads. You need to do the following:
-Find out the initial price.
-Look over the car. Take a friend with you who is not emotionally invested in the car to help you spot defects, damage, and wear and tear.
-Ask about the car history. Particularly if it is a private owner, ask how long the person has had it, whether the service records are available, and how and where it was driven.
-Test-drive it to get a sense of how it starts and runs.
Locate a mechanic who will inspect cars for you. Many gas stations or garages will perform an independent mechanical inspection of the car without pressuring you into buying their repair work. If you have doubts about the mechanical condition of the car, paying fifty dollars to have the car fully inspected is well worth the time and the satisfaction.
Begin the negotiation. Assuming you have decided to try to buy this car, here’s where all your planning and preparation come into play. Make sure you have set your target price, based on what you can afford and what the industry standard says for the value of the car. Also know your walkaway point (the least you will pay) and a BATNA (what other similar car might be available in the neighborhood). Then ask the owner to name the price. Even if you are in a dealership and there is a big price sticker in the window, ask whether that is the best price the owner can give you today.
How you negotiate depends on whom you are dealing with. If this is a private sale from a stranger, or a dealership, you are most likely in a competitive negotiation. If you are buying the car from a friend or relative, you will not want to bargain hard and make the person angry. You might make a little more but you must also worry about preserving your relationship with this person. Chances are he or she is going to be as worried about this as you are.
Make your counteroffer. You might want to start the bidding by making an offer. If you do, offer about 85 percent of what the owner is asking or a price that is 5 percent below the blue book value of the car. Some people suggest you should counteroffer even less just to find out how serious the owner is about the first offer. Be ready to justify your counteroffer with a list of arguments about why the car is not worth what the owner wants for it—or at least not worth it to you. This might include:
High mileage
Wear and tear on the paint, nicks and dents, upholstery, and unpleasant odors, for example
The cost of immediate work you have to do to get the car in good condition (even if you never intend to spend that money)
Bargain hard until you get to your target. Be prepared to spend a lot of time at this. The longer you stay at it, the more likely the owner may be to make big concessions just to get the sale over with. If it is a private sale, ask how quickly the owner has to sell. The longer the person has had it or the more quickly he or she needs the cash, the more willing he or she may be to come down quickly. Make small concessions when you make them (say, in hundred dollar increments). Try to get the owner to give more and give more often. And be prepared to walk away if the counteroffers do not make significant movement toward your target.
In this step, you have to watch out for emotional decision making. Don’t fall in love with the car or the seller unless you are willing to pay several hundred dollars more for that love affair. The more you fall in love with this car, this seller, or needing to “drive this car off the lot,” the more likely you are to pay too much. Love affairs are never cost free.
Your mantra as you haggle over the car you’ve chosen should be, There are always more cars on the market. Eventually you’ll find a similar car with similar mileage, even if you don’t see an alternative on the market right now. So don’t feel as if you have to close this deal no matter what. Patience is the most important quality of the used car shopper, and it gives you the upper hand in every negotiation.
In fact, patience and a level head are the most important qualities in any negotiation, whether business or personal. As we promised, the skills of the master business negotiation carry over easily into your personal deals of a lifetime too.
Figure out your requirements for the car. How are you going to use it? Getting back and forth to work or school? Transporting just you or several other people as well? Putting on lots of miles or just a few each day? Maybe hauling tools or equipment? Thinking this out should let you define the current mileage level, the size (compact, midsize, SUV, pickup truck), the style (sporty model or more conventional sedan), and other distinctive features required such as four-wheel drive, trunk size, or ski or luggage rack. These are your interests.
Define these interests clearly and don’t waver from them unless you have a chance at some amazing deal on a car that does not fit this profile. When you are looking at cars, it is easy to get distracted by models and types that don’t meet these interests. Define what you want, and don’t budge unless you have a good reason to do so.
This tendency to forget our own interests and get distracted by features and benefits is a problem in all consumer purchases, and sometimes in personal relationships as well. What qualities do you value most in furniture, for instance? If comfort and lasting value are at the top of your list, avoid an overpriced, uncomfortable Italian designer couch even if all the cool people are buying them.
Figure out how much you can afford to spend. If you are paying in cash, can you pay it all now, or do you need to pay it in several payments? If you are thinking of borrowing money for a car loan, visit a bank before you start looking for a car and find out how much the bank will lend you and what the monthly payments will be. Have the bank help you think about what your budget should be and how much you can afford. These become your financial targets and walkaways.
Locate several cars that meet your specifications from one of these:
1. Your local newspaper or auto trader, either in the classified ads for used cars or in the used car ads placed by dealerships
2. Car dealer Web sites
3. Car lots (new and used)
4. Word of mouth, friends, bulletin boards at work or school
5. “Drive-bys”—cars sitting in yards or empty lots that individuals are trying to sell
Car dealers make their money by buying cars at a low price and reselling them at a higher price. So when you deal with a dealer, you are paying more for the car than the dealer did. Sometimes this is good because dealers may give a warranty for ninety days against defects and mechanical work needed. Private sales from individuals may be cheaper to you, but you probably can’t get any guarantee and don’t have anyone to complain to if you discover problems.
Your objective is to find several cars that meet your interests. Your job now is to find out how to get the best deal on that make, model, and year of a car. For example, if you find a 2004 Honda Civic that you like, start looking for other 2004 Honda Civics so you can compare mileage, wear and tear, and quality of other features like the radio, tires, and cleanliness.
Research the “book” value of the car. There are many resources on the market that tell you what any car of a specific make, model, and year should be selling for. These “blue books” often list the average book value, what a car in very good condition might be worth, or what a car in poor condition might be worth. All banks, bookstores, and libraries have them as well. You can also find several Web sites with this information. We particularly like www.edmunds.com
Contact the owners of the cars you are interested in. Go to the used car lots or set aside a Saturday morning and call some of the numbers in the newspaper ads. You need to do the following:
-Find out the initial price.
-Look over the car. Take a friend with you who is not emotionally invested in the car to help you spot defects, damage, and wear and tear.
-Ask about the car history. Particularly if it is a private owner, ask how long the person has had it, whether the service records are available, and how and where it was driven.
-Test-drive it to get a sense of how it starts and runs.
Locate a mechanic who will inspect cars for you. Many gas stations or garages will perform an independent mechanical inspection of the car without pressuring you into buying their repair work. If you have doubts about the mechanical condition of the car, paying fifty dollars to have the car fully inspected is well worth the time and the satisfaction.
Begin the negotiation. Assuming you have decided to try to buy this car, here’s where all your planning and preparation come into play. Make sure you have set your target price, based on what you can afford and what the industry standard says for the value of the car. Also know your walkaway point (the least you will pay) and a BATNA (what other similar car might be available in the neighborhood). Then ask the owner to name the price. Even if you are in a dealership and there is a big price sticker in the window, ask whether that is the best price the owner can give you today.
How you negotiate depends on whom you are dealing with. If this is a private sale from a stranger, or a dealership, you are most likely in a competitive negotiation. If you are buying the car from a friend or relative, you will not want to bargain hard and make the person angry. You might make a little more but you must also worry about preserving your relationship with this person. Chances are he or she is going to be as worried about this as you are.
Make your counteroffer. You might want to start the bidding by making an offer. If you do, offer about 85 percent of what the owner is asking or a price that is 5 percent below the blue book value of the car. Some people suggest you should counteroffer even less just to find out how serious the owner is about the first offer. Be ready to justify your counteroffer with a list of arguments about why the car is not worth what the owner wants for it—or at least not worth it to you. This might include:
High mileage
Wear and tear on the paint, nicks and dents, upholstery, and unpleasant odors, for example
The cost of immediate work you have to do to get the car in good condition (even if you never intend to spend that money)
Bargain hard until you get to your target. Be prepared to spend a lot of time at this. The longer you stay at it, the more likely the owner may be to make big concessions just to get the sale over with. If it is a private sale, ask how quickly the owner has to sell. The longer the person has had it or the more quickly he or she needs the cash, the more willing he or she may be to come down quickly. Make small concessions when you make them (say, in hundred dollar increments). Try to get the owner to give more and give more often. And be prepared to walk away if the counteroffers do not make significant movement toward your target.
In this step, you have to watch out for emotional decision making. Don’t fall in love with the car or the seller unless you are willing to pay several hundred dollars more for that love affair. The more you fall in love with this car, this seller, or needing to “drive this car off the lot,” the more likely you are to pay too much. Love affairs are never cost free.
Your mantra as you haggle over the car you’ve chosen should be, There are always more cars on the market. Eventually you’ll find a similar car with similar mileage, even if you don’t see an alternative on the market right now. So don’t feel as if you have to close this deal no matter what. Patience is the most important quality of the used car shopper, and it gives you the upper hand in every negotiation.
In fact, patience and a level head are the most important qualities in any negotiation, whether business or personal. As we promised, the skills of the master business negotiation carry over easily into your personal deals of a lifetime too.
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