• •  Determine your car's value using some pricing tools found online.
• •  Provide an honest evaluation of your car's condition to get a true idea of its worth. Remember: A potential buyer will tend to be more critical of the car's condition.
• •  Search used-car listings or car sold history on carplus.com.au to see how similar models are priced in your area.
• •  Research dealer pricing, but don't expect to get the same amount in your sale.
• •  Factor in likely repair work. If your car is worth $10,000 but needs a new clutch, then don't expect to receive full value. Reduce the price in accordance with necessary repairs.
• •  You may want to consider adding "or best offer" language to your asking price. Including OBO could result in more leads, but it may also result in lower initial offers.
• •  Be realistic: Is your used car still a popular and viable model, or are you driving a relic of an earlier age? Be honest with yourself and price it accordingly.

Once you've prepared your car and have an asking price — now you need to sell it. A well-written ad will draw buyers' attention and can help sell the car quickly.

• •  Photos, photos, photos. Use as many photos of your clean, well-maintained car as possible. Include a variety of shots, such as exterior front, rear and side angles; interior front/rear seats; the dashboard; booth/cargo space; wheels and tires; engine; and other special features.
• •  Indicate all the options and features of your vehicle: a high-end stereo, a V-8 engine, all-wheel drive, a sunroof, an electronic stability system, other safety features, comforts, etc.
• •  Are you the car's only owner/driver? Has it been stored indoors during all seasons? Highway mileage? These items may be worth mentioning.
• •  Avoid phrases such as "Fully Equipped!" or "Like new!" Instead, be specific: fully equipped with what? How is it "like new"? Does it have relatively low mileage for its age? Is the interior immaculate?

It's possible to sell a car even if you still have an outstanding loan balance on the vehicle. This just adds a step to the transaction: closing the loan with your lender.
 

• •  Call your lending institution or bank to determine the best way to close out the loan. At the same time, ask about obtaining a lien release, which states that there are no outstanding loan obligations on your car.
• •  If you owe more on your loan than you can pay prior to a sale, it's possible to close the loan and transfer ownership at the same time.
• •  You can conduct the sale at the bank or lending institution that holds the title or lien on your car. Just pay off the loan balance with the sale proceeds and sign over the title to the new owner. Call the lending institution beforehand to facilitate this transaction. While this option involves more faith on the part of the buyer, you can tell the buyer that it's also in your best interest to transfer the title as soon as possible to eliminate your personal liability.
• •  Leased cars represent a different situation. If you want to transfer your current lease to a new owner, you're better off using a lease-transfer service.

Few people would buy a car from a dealer without test-driving it first, and the same is true when dealing with a private-party seller. It may seem odd to hand your keys to a stranger, but the process should run smoothly if you follow these tips:

• •  It's best to meet potential buyers somewhere other than at your home. When possible, bring along a friend for peace of mind, and make sure family or friends know of your plans.
• •  You should accompany prospective buyers on the test drive. This is crucial; It gives you more selling time, and it spares you the distress of watching a stranger drive away in your car. When riding along, point out all the features you love about your car, including things you didn't have room to mention in your ad. You've got a captive audience — make the most of your time.
• •  If the buyer makes a special request to go it alone — and you feel comfortable with that — make a copy of his or her driver's license (assuming you don't have quick access to a copy machine, simply jot down the name, address and driver's license number). Set a time limit on the test drive, and exchange cell phone numbers. Also, confirm that the driver's license information meshes with what you were told when you first made contact.
• •  Pre-plan a general route that allows the buyer to experience a variety of driving situations during the test drive. Give the buyer the opportunity to drive on the highway and in local traffic.

Whether you're dealing with a buyer in person, via email or over the telephone, always be careful when accepting payment. Scam artists are good at what they do; remember these steps to make yourself less vulnerable:

• •  Never wire money to a potential buyer under any circumstances. If a buyer pays via a check or money order, accept only the exact amount of the sales price.
• •  Confirm with the issuing bank that the check is valid. Look up contact information for the bank on your own, as a forged check likely will include a phony bank address and phone number.
• •  When possible, go to the bank with the buyer to verify the check's authenticity. In addition, it's a good idea to request a cashier's check drawn from a local branch.
• •  Stick to your timeline and don't rush the transaction. If the bank is closed when the buyer wants to pay you, hold off until you can verify the check's validity. If possible, wait until the check clears the bank before handing over ownership of the vehicle. How long that takes will depend on your bank, but it should be less than a week.
• •  If the buyer chooses to pay by money order, follow the same safe-payment guidelines for accepting checks. Verify the name and amount with the issuing bank, and request a money order from a local bank whenever possible.
• •  Liability insurance coverage shouldn't be an issue. Many insurance policies cover other people who drive your car so long as they're doing so with your permission and have a valid driver's license. Verify your policy's details; if it doesn't offer this protection, ask to see proof of the buyer's insurance. Make sure the driver has full coverage, which includes collision, liability and comprehensive.

Transferring ownership to the buyer is easy, but details vary by state. We list a few guidelines regarding this part of the transaction, but check with THE RTA or your local Department of Motor Vehicles for location-specific details:

• •  Before potential buyers take their first look at your car, make sure you have the title in your possession — provided the car is paid off. You'll need to sign this over to the new owner.
• •  Ownership-transfer legalities vary from state to state, so get the details from your local RTA.
• •  To avoid future liability, notify the RTA that you sold your car.
• •  It's a good idea to fill out a bill of sale, even though it doesn't legally transfer ownership. Some states make this a requirement. A bill of sale lists the car's vehicle identification number, a description of the car, the date of sale, the purchase price, and the names and signatures of both parties in the transaction.
• •  Make copies of all paperwork.

Now it's time to say goodbye to your car. A few last-minute reminders:

• •  Don't jump the gun; make sure the sale is secure. If you accepted payment via a bank's check, follow the steps in the Securing Safe Payment section to ensure it's valid before you sign over the title.
• •  If you're dealing with an out-of-town buyer, arrange for that person to pick up the vehicle, or consider employing a professional delivery service. Delivery services transport vehicles. Prices vary depending on the length of the transport and the vehicle's weight. Work out the cost and payment issues with the buyer first.
• •  Call your insurance company and have the vehicle removed from your policy.
• •  As long as you were forthright with information about your car in the selling process, you shouldn't be liable for anything once the sale is complete. It doesn't hurt to get that the sales carry "as is" status in writing. Have both parties sign off before the transaction is complete.