What can go wrong when selling a car?

By Martin Pretorius

Over-estimating your car's value

There's no doubt that you take good care of your car. It has a full service history and average mileage, has never been in an accident, and the upholstery still looks presentable – especially after splurging on that full valet before taking the pictures for your advertisement. Sure, there are a few small scratches on the rear bumper, and it needs a new windscreen, but overall, you reckon that your car is worth more than the average example out there.

But guess what? It really isn't. Because there is a whole horde of other “reasonably neat, average mileage” examples of your car out there, and they're giving potential buyers a huge selection to choose from. In reality, you'll almost never be able to command anywhere near the official retail value, as listed in the dealers' price guides.

Just because you see other examples of similar cars being advertised at higher values doesn't mean that those asking prices are in any way realistic. Instead, it means that everyone else wants to take the chance as you. Rather set your sights more realistically, and aim for a negotiable price set midway between the “trade” and “retail” values as listed in those price guides. Holding out for too high an asking price (even if you feel that it's still too low) will simply result in you being stuck with the car for longer than necessary.

The demonstration drive

You've finally hooked a serious buyer, and now comes that all-important test drive. But you've also heard horror stories of hijackings and robberies, so you'd rather prefer to play it safe. The reality is that there might be crooks walking among the majority of decent, serious people who are genuinely interested in your car.

To avoid any unpleasant experiences, you'll have to engage in some cloak-and-dagger activities. Don't arrange for a viewing at your residence, because you really don't want anyone with nefarious intentions to know where you keep your car. Rather make arrangements to meet at a busy service station, and take along a friend for support. Chances are that an honest buyer is probably equally worried that you might be a crook or scam artist intent on relieving them of their cash, so keep matters friendly and civil when you meet.

Let said friend (as well as the buyer's friend, which they will probably bring along as well) accompany you and your car during the test drive as well, and keep an eye out for suspicious behaviour – not only from the buyer and their companions, but from other vehicles around you. Car theft syndicates are a ruthless bunch, and it pays to remain alert.

 

The actual sale

So the demonstration and test drive played out without drama or threat, but that doesn't mean you're in the clear just yet. There are two more obstacles still to overcome: payment and paperwork. Both of these could lead to financial loss, invasion of privacy, and run-ins with The Law.

• Payment:

Very few people are willing to walk around with a bag full of cash, especially not enough with which to buy a car. This leaves two other choices: a bank guaranteed cheque, or an electronic fund transfer (EFT). By all means, accept a cheque, but with a clear proviso that the car and its documents will only be released when the cheque has cleared after being deposited, and its amount reflects in your bank account.

The same applies to EFTs: don't take anything at face value, because criminals are continually crafting new and clever ways to con you out of your money and property.

• Paperwork:

You need to supply the certificate of registration when you sell a car. What you don't need to do (and in fact, never should do) is to allow copies to be made of the registration certificate, and for those copies to then leave your hands – at least, not until the payment reflects in your account. The same applies to your ID book, driver's license, or anything else which could lead to identity theft or fraud.

Next, you should create another document called the bill of sale. This has become especially important since the Consumer Protection Act (CPA) came into effect in 2011, as this document is used to describe the conditions of sale, known errors on the car, and limits to your liability.

What's this about the Consumer Protection Act?

While it is true that the CPA has had its largest impact on dealerships, it applies to private sales transactions as well, if to a somewhat lesser degree. It has mainly changed the way in which the transaction is concluded, and in way that the bill of sale is composed.

CPA requirements

The currently legally accepted bill of sale will stipulate a number of things. Firstly, it will state that the buyer is willing to buy your car, knowing and accepting that it is pre-owned and not new. This might seem redundant, but it is important in the context of the CPA, which seeks to afford both buyers and sellers the maximum possible protection.

Furthermore, the bill of sale will include a list of known defects on your car. We're not really talking about scratches on the paintwork or cigarette burns in the carpet here, but rather about so-called material defects – those things which could conceivably cause the car to stop working. This doesn't include wear items, however. If you know that there's a noise coming from a CV joint, or that the gearbox has a strange whine, or anything else of a similar nature, be sure to disclose this in the bill of sale.

Why do you have to disclose these things? Because failing to do so will enable the buyer to invoke the CPA, forcing you to either repair the defect, replace the car, or refund them for the transaction plus associated costs – and all that for a period of 6 months after concluding the sale! We know that it's tempting to remain quiet about defects when you really want to get rid of the car, but doing so could open you to a world of expenses and unpleasantness.

The flip side of the CPA

It's not all doom and gloom, though. Once you've listed defects on the car, stated that the car is otherwise sold “voetstoots”, and the buyer has acknowledged this by signing the bill of sale, that wraps up your liability on those defects. Any further failings of the vehicle will be none of your concern, provided the buyer can't prove that you omitted mentioning such failings at the outset.

As an example: If your car has performed flawlessly in your hands, has been maintained according to schedule (or if any maintenance shortcomings are listed in the bill of sale), but then eats its gearbox two months after the sale, it will be extremely difficult for the buyer to prove that you knew about the looming disaster but failed to mention it. And, as previously stated, wear items are not subject to the CPA, so if the clutch packs it in or the shock absorbers start leaking, it won't be your problem. Just play it straight from the outset, and the CPA will look after you as much as it looks after the buyer.

 

 

 

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