With the used car market still running red hot in Australia in 2023, there’s never been a better time to consider upgrading. Increasing costs of living and inflationary restraints, result in heightened awareness of car ownership costs. This means that many of us are considering household costs and may be looking to sell our cars - either to upgrade and avoid maintenance risks, downgrade, consolidate, or not replace their cars altogether. But if you are looking to sell, what’s the best way to move on from your old car to make way for the new?
We explore the options available to you when it comes to selling your wheels, as well as some of the pros and cons to consider when deciding which option is right for you.
1. Private Sale
Selling your car privately often results in the highest possible sale price, as you avoid the intermediary fees and commissions required when selling through a dealer. Websites such as carsales.com.au, Gumtree, Facebook Marketplace, tradingpost.com.au, and carsguide.com.au all offer private sale functionality for vehicles, and some even offer this service for free, saving you some serious cash compared to other options.
This is the most time-consuming route, however. From writing the ad text to uploading your own images of your car, it will take a few more man hours to list your vehicle yourself - especially if you’re listing the vehicle across several platforms. Private sales can also be risky, as some buyers may try to negotiate a lower price or even scam you. Your potential audience can be somewhat limited through a private sale, too, depending on the channels you choose to use.
If you’re ready to take the time to sell your car privately, we’d recommend advertising effectively by taking clear and detailed photos, and writing a detailed and thorough description that highlights its features and condition adequately. Research the market value before you list it, as a competitive price will result in a quicker sale, and be prepared to negotiate with a minimum price in mind before you get started. Most importantly, always verify the identity of the potential buyer, don’t hand over keys until any payments have cleared, and make sure registration and sales paperwork are completed properly - by both yourself and the buyer.
2. Trade-In at a Dealer
Some dealers will take your current vehicle as a down payment for a new one. This is the most convenient option, and can be done quickly and easily - dealerships will also often reach a wider network of potential buyers. On the downside, this option often results in a lower sale price compared to other types of sales, incurs some additional fees (to cover processing, advertising, and documentation), and leaves little room for negotiation.
Before selling through a dealer, we recommend ensuring that you understand the market value of your car and get a range of quotes to ensure you get a fair price. Be sure to negotiate the price and fees, reading the fine print carefully - and if you plan to trade-in your car, ensure that you discuss the trade-in value separately from the purchase price of your new vehicle.
3. Car Brokers
Car brokers offer an easy and convenient way to sell your car quickly, negotiating with buyers and selling the vehicle on your behalf. They usually have a wealth of expertise and knowledge and a wide sales network, which can also help to get you the best possible price. Again, though, using a middleman will result in less cash in your pocket, as brokers often charge a commission for their services.
When selecting a car broker, we recommend you look for a proven track record of well-priced car sales, understand the broker’s fee structure, and negotiate the best possible rate. Be clear about your expectations and goals, ensuring that you provide the broker with as much information about your vehicle as you can.
4. Auctions
Car auctions can be a great option if you’re looking to sell your car quickly in a given time frame - however, the sale price is dependent on the demand and bidding activity on the day. This can sometimes work in your favour, when multiple interested bidders compete, driving up the sale price of the vehicle. With this option, however, comes some uncertainty - a good price isn’t guaranteed. You’ll also be charged fees for the sale, depending on the auction type and value of the car.
If you’re keen to sell your car at auction, we suggest that you research the auction, set a minimum (or reserve) price, ensure your car is in good condition, and be prepared to negotiate on the price you may have in mind. It’s also important to understand the listing, commission, and other fees that you might be up for when selling your car through an auction house.
5. Carbar
At carbar, we’re always on the lookout for new vehicles to continue offering our customers a good range of options to buy or subscribe. For a fast, safe, and hassle-free experience, you can also sell your car to us for a competitive price. We don’t deal with many of the same overheads as traditional car dealers - meaning we’re able to offer you a great deal if your car meets our criteria and we want it.
We also come to you - just pick a time and date for the inspection, and we’re there. We handle the paperwork, the risk and the stress.
To learn more about how we can get the best price for your vehicle, head to https://www.carbar.com.au/sell-a-car.
