How to Sell Your Car for the Most Money
Sep 27, 2023
Out with the old…
…and in with the new.
It’s time to upgrade! š„
First Objective: Get the most money for the old car
There are a few ways to sell a car, however, there are tradeoffs with each.
There are two main factors to consider: Time & Money
In most cases, you’ll have to sacrifice a little money for convenience…
…and vice-versa if you are trying to maximize the amount you can sell your car for.
How much is my car worth?
One of the best resources that I’ve found is using Kelly Blue Book (aka “KBB”).
You can quickly type in the year, make, and model and it’ll scan recent transactions for how much similar cars sold for.
This will give you a baseline of what the car is worth in the current market, both if you trade it in or sell it to a private party.
Take a look at the almost $2,000 top-line difference between the estimate for a 2005 Mitsubishi Galant.
Trade-In Value Estimate
Private Party Value Estimate
Deciding how and where to sell
I would categorize the options of where to sell a car into three major categories:
- Dealerships
- Private Party Seller
- Online Marketplaces
Selecting which is the best comes down the age and condition of the car.
Why?
Newer cars in great condition will have a larger range that you can sell the vehicle for versus an older vehicle may be worth near the same regardless of how you sell it.
Here’s a matrix of generally how each option plays out in terms of time and money.
Optimize for Time: Dealership
Walk in and they will check their system…
…in a few minutes you’ll have a quick offer.
In most cases, they will add “you can get more if you purchase a car.”
Keep that in mind and be careful to not walk out of the dealership with something you didn’t expect on taking home. š
Not a ton of time spent…
…unless you end up buying a car and THAT can take a while.
Since the potential buyers are dealerships, they will be more rationally-driven…
…because they are going to resell your car.
They want to give you the least amount of money, to sell it for the most possible.
Optimize for Money: Private Party Seller
This takes the most amount of time mostly because you’ll have to do the marketing and advertising.
The positives?
You can set the price.
You can negotiate.
You are in control of the sale.
The potential buyers are going to be more emotionally-driven…
…where they are looking for what they perceive as “a good deal.”
š¼ļø A picture is worth 1,000 words: A quick trip for a $150 detail and vacuum can be worth the extra $2,000 you could sell the car for. Don’t forget to take well-lit pictures. A buyer’s first impression matters!
Optimize for Time & Money: Online Marketplace
With car buying and selling going online…
…there are a TON of options to select from.
Marketplaces like AutoTrader, Shift, CarMax or Carvana have the ability to spin up quotes online in minutes!
Some will even pick it up from your home!
Since most of these don’t have physical dealership locations, there business model is different…
…which means they can sometimes give you better trade-in values than a traditional dealership would.
Also since you can get a quote quickly online…
….don’t forget to shop around and see who will give you the best price!
Old car worth less than $500?
If you have an old car or one that is in poor(er) condition,
you might qualify for a state-sponsored or junk yard program.
I did this with my 1991 Dodge Stealth after the driver’s door was smashed in.
Instead of ‘selling’ it for $300…
…I took it to Pick-n-Pull’s Cash for Junk Cars program for $1,000!
š Other Notable Resources
- Last Week’s Post: Over 72% in the US miss out on this tax-free investment
- State-sponsored Program Example - California: Cash for Clunkers program
