Mumbai

How to Sell a Used Vehicle

What's in the Guide
What are the very first steps to be kept in mind while selling your car or two-wheeler? Is touching-up or repairing your car or two-wheeler necessary before selling it? Should you sell your car or two-wheeler to a dealer, at an auction, or privately? How to advertise the car or two-wheeler that you want to sell? What are the points to keep in mind while meeting a potential buyer?	How to negotiate while selling your car or two-wheeler? How do you close the deal with an interested buyer? Is a Bill of Sale necessary? How to close the financial transaction safely? Is there anything to be done AFTER the sale has been made?

What are the very first steps to be kept in mind while selling your car or two-wheeler?

Find out the ‘market demand’ for your vehicle
Survey the classifieds, do some research (both online and offline) and also consult dealers
Be realistic : Appreciate that what was once the trend (when you bought the vehicle), may not be the case anymore
Never sell in a hurry
It’s a good idea to have the vehicle inspected by a reliable mechanic, and get a report of the same

Is touching-up or repairing your car or two-wheeler necessary before selling it?

Vacuuming, washing and waxing the vehicle, ridding it of dents, scratches and scrapes, cleaning up the upholstery, shining up the tires and hubcaps, de-odorizing the interiors (for cars), and, if possible, conducting low-cost repairs (for chipped lights and windshields, broken wipers, disfigurements, discolorations, etc.) will make your vehicle look attractive and may fetch a higher price.

Should you sell your car or two-wheeler to a dealer, at an auction, or privately?

If you post your ad on an online platform like Junglee.com, you will come across two kinds of customers, dealers and individual buyers. There are traditional auctions, too. Here are some pros and cons of each -

Dealer :

With a dealer, you will perhaps get paid a bit less. On the other hand, it’s usually a hassle-free process (since they’ll be getting things done legally and professionally). Another plus is that payment will be immediate

Auction :

Auctioning your car or two-wheeler is another way of selling it quickly. Check online for auctions in your city. Remember to take all your papers and documents along, since an auction sale completes on-the-spot. The auctioneer will charge a cut (a percentage of the selling price). At a slight additional cost, you also have the option to set a reserve price below which your vehicle can’t be sold

Individual :

Selling to an individual means having to micro-manage every step of the sale such as marketing, meeting, negotiating and completing the legal documentation, etc.. It may also take longer to make the sale. However, you may get the best deal

How to advertise the car or two-wheeler that you want to sell?

Decide where to advertise : While traditional platforms like newspaper classifieds continue to be effective, make sure you take full advantage of emerging channels like online classifieds, auction sites, message boards and, of course, social media such as Facebook and Twitter where word travels fast

You can start by posting a free ad on Junglee and making your ad visible to thousands of buyers in your city

Craft your ad appealingly : Choose your words well. Using pictures, videos and testimonials will increase your chances of making a sale

Your ad must contain the following elements :

Make and model details
Photographs of the vehicle
Condition
Special features / accessories
Your contact details

Year of registration and plate number
Mileage
Color
Price

Take advantage : If you’ve made major improvements lately, boost up the tag accordingly

Be honest : Stick to the facts.

What are the points to keep in mind while meeting a potential buyer?

Gather all relevant certificates and reports, and ensure that there are no outstanding loans or dues

It’s a good idea to mention before-hand your payment preference (cheque, draft, cash, money order, bank transfer, online, etc) to the potential buyer : This way, the transaction, if and when it happens, can be closed quickly

Ask the potential buyer for proof of identity (ID)

Be ready to answer questions like :

Why are you selling the vehicle?
Did you buy it new (or as a pre-owned vehicle)?
How many kilometers has it run?
Has it been involved in an accident / illegal incident?
Can you show all the papers and certificates?

How long have you been using it?
What’s the condition of the different parts?
What’s the mileage?
Has any part been replaced?

Provide the VIN number and encourage potential buyers to check the Vehicle History Report

Remember that aware buyers will check to see that both VIN and chassis number on the vehicle are matching those mentioned in the documents

If you vehicle is in need of some minor repairs, mention it upfront – Don’t hide

If a buyer wants to have the vehicle tested by a mechanic or service station, make sure the mechanic comes over to your place (instead of the other way round), or that the workshop is nearby. Be physically present during the inspection

Before the test drive, check the driving license of the interested buyer and accompany them in the same vehicle – don’t let them go for a spin alone

How to negotiate while selling your car or two-wheeler?

Don’t negotiate before the test drive
When you do, negotiate with confidence – don’t get emotional or ‘soft’
After considering all factors, quote your price reasonably, and stand your ground Remember – negotiation is, above all, a mind game

How do you close the deal with an interested buyer?

If the buyer wants to ‘reserve’ the vehicle till s/he arranges the money, ask for a reasonable deposit amount, and clearly communicate the timeframe within which the rest of the amount must be paid

Before signing on the dotted line, it’s a good idea to talk to a friend or relative who is experienced in these matters, or consult a lawyer

Papers you will be required to hand over are :

Title Transfer* Deed
Service records
Vehicle-tax
Road-tax papers
Municipality certificate (if applicable)
Loan hypothecation clearance (if applicable)
A 'Sold as seen, tried and approved without guarantee' receipt.

Original registration certification
Insurance papers
Toll-papers
Pollution under control certificate
Warranty and maintenance certificates
Any other

Prepare a Seller’s Contract that both you and the buyer should sign with date

Don’t forget to keep multiple photocopies of all papers and documents with you

If the buyer is from out-of-town, make sure s/he arranges to pick up the vehicle. Alternatively, commission a professional delivery service and split the cost with the buyer

Is a Bill of Sale necessary?

For the seller, a Bill of Sale spells ‘peace of mind’, because it serves as evidence that you are no longer responsible for the vehicle, should the new owner get embroiled in traffic violations, accidents or legal issues
It must be signed by both seller and buyer
However, a Bill of Sale does not prove ownership transfer or complete the sale. For that, the seller must complete the Title Transfer*

How to close the financial transaction safely?

If the buyer is paying by cheque, it’s a good idea to request a cashier's cheque drawn from a local branch
Wait for the cheque to clear before moving forward
If the buyer is sending money via money order, verify name and amount with the issuing bank. It’s best to insist on a money order from a local bank

Is there anything to be done AFTER the sale has been made?

Record the odometer reading and have the document signed by the buyer. This way, if the vehicle gets into an accident or illegal incident after the sale, you won’t be held responsible
Inform all relevant authorities immediately that you have sold your vehicle
Remember to cancel your insurance policy after selling the vehicle

About Us	We're Hiring	Help	Advertise on Junglee
See all Departments	The Junglee Blog	Media Room	Sell on Junglee