Drive It

Determining the Sales Price

The key to a quick and painless private sale!

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FACTORS TO CONSIDER WHEN DETERMINING THE PRICE

Private sale vs. Trade-in

To price your car right, research private pricing as well as dealer pricing for your make/model of car. Remember, selling your car privately could get you significantly more than what a dealer would offer you for trade-in but, it cannot be expected to get the same retail amount as dealers when selling to a private buyer. (When buying from a dealer there are a lot less risk involved and dealers might also provide other benefits such as return/exchange policies, limited warranties, etc.) You also have to consider in the amount of time involved in selling a used car on your own.

Negotiable

You could add wording such as ‘Price Negotiable’ or ‘Best Offer’ to your ad which could result in more leads, but might also spell lower initial offers from potential buyers.

Demand vs. Supply

Be realistic about the market popularity of your car and price it accordingly. If there is a demand for the particular vehicle in the current market, you might get a slightly higher price compared to driving an undesirable model of an earlier era.

Age

As soon as a new vehicle is driven off a showroom floor it immediately starts to lose value. The most value is lost within the first 1-2 years of its life where after it loses value more gradually. It is to be expected that the older a vehicle gets, the more the demand for it picks up in the second hand market but only up to the point of about 6 to 8 years old, at which point values fall off dramatically. Banks are not keen to finance cars that is older than 6 to 8 years, and hence cars reaching this age rapidly loses its value.

Extras etc.

Give consideration to whether your vehicle has extras like a sunroof or leather seats. Extras could add some value, but in the second hand market, unfortunately it counts for less than one would expect.
Continued on page 4…
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