Selling a car privately: The pros and cons

There are many reasons why you might prefer to sell your car privately: you may be unhappy with the price or trade-in offered by a dealer, or your car is in such low demand (or so old) that no dealer is interested in buying it, or you're not in a particular hurry to get rid of it, and would rather wait until you can get a better price for it. Here are some advantages and disadvantages to selling a car privately.

It's worth more in the private marketplace

Dealerships generally offer far less for pre-owned cars than sellers could get in a private sale. There's a simple reason for that: dealers want to turn a profit, and they want to maximise that profit. This is where the concept of “trade” and “retail” values come from, with the former being a guide to what an average dealer would pay for the car, and the latter being an indication of what an average buyer would be willing to pay for the car.

The private sale value will lie somewhere between these two values, with the transaction price determined as much by negotiating abilities (on the part of both buyer and seller) as it is by the actual condition of the car. Either way, the seller will get more than a dealer would give them, and the buyer will pay less than they would at a dealership.

Just be safe

As with any high-value transaction these days, opportunistic criminals may try to separate you from your car, or money, or both. To avoid this, always arrange to present the car at a public location – a busy service station would be a good choice. Never go alone, rather rope in some friends to act as your bodyguards while you're demonstrating the car to the prospective buyer. 

You should likewise exercise caution during the inevitable test drive – always go with the car, and get a friend (bodyguard) to join you on this drive. Never meet the buyer at their place of residence, and never at your own residence either: you don't want to run the risk of walking into a trap, and you don't want to disclose your home address either. The same applies to payment – never release the car to the buyer unless you have either the cash in your hand, or until an electronic bank transfer shows as available in your account.

It may take some time

Not all cars are equally desirable in the pre-owned market, so it might take a while before your car actually finds a buyer. If you have a collector's item, your best bet would be to advertise the car among enthusiasts, but ordinary cars are served well by online listing services such as autotrader.co.za.

But even with the most comprehensive advertising, you may still have to be patient. Every car has a buyer, but they're not always ready at the same time. If you want a guaranteed quick conclusion to the sale of your car, it would definitely be better to visit a dealer, but with some patience and care, you could reap a nice financial reward for your patience.

Do you want to sell your car instantly?

AutoTrader now makes it easier than ever to sell your car, with the introduction of our new Instant Offer service. After following this simple 3-step process, you will get a market-driven valuation for your car within minutes, and a solid cash offering within hours – safely, conveniently, and with total peace of mind.