What to do if you sell a car privately

Stuart Johnson

Step 1. Prepare the car for viewing

Give the car a major clean, or if this is too much like hard work, pay to have the car professionally valeted. First impressions are lasting impressions.

Step  2. Have  known faults rectified, if you can afford to do so. Any other fault should be listed on a document that you prepare, to be signed by both yourself and the buyer, once an agreed selling price has been reached.

Step 3. You may at this stage take your car for an AA or Dekra test, and also obtain a roadworthy certificate, as this can be attractive to a buyer. However, a roadworthy certificate is only valid for 60 days, and if you don’t manage to sell your car within this period, it will be money wasted. The general rule these days in private sales is for the buyer to get the car road worthy tested, just prior to registration.

Step 4. Decide on a realistic price, after searching for similar cars of the same model year in AutoTrader, and advertise your car for sale in AutoTrader

Step  5. You will need to obtain a Yellow Change of Ownership form and a Blue Application for Registration form from your local licensing authority. Both forms should be completed by yourself and the buyer. It is suggested that you obtain two copies of the yellow form, and that you hand one of these completed  into your local licensing authority, as soon as possible after selling the car. It is stipulated on the form that the seller should submit this change of ownership form within 21 days after selling the car. If you leave it to the buyer, you may be subject to any traffic fines recorded, if the buyer delays his registration process.

Step 6. Have copies of your I.D document made, as you will need to provide this to the new owner, for submission when he or she registers the car.

Step  7. Your registration form is proof that the car is yours. Never surrender the registration form until the money paid for the car is registered in your account.

Step  8. If your car is paid up fully, then your registration form will list you as the owner as well as the title holder. If you still owe money on the car, request a settlement fee document from your finance house. This will serve as proof that you are the rightful owner of the car.

Step  9. Once a serious buyer has made contact with you by telephone, arrange for the buyer to view the car. It is suggested that you may want to arrange this meeting at venue other than your home, and that you arrange to have a family member or friend present when this takes place. A busy service station which has CCTV coverage is a good choice.

Step 10. Before allowing the potential buyer a test drive, ensure that you see proof of the buyer’s valid driver’s licence. A good idea here is to take a quick pic of the licence using your cell phone. Always accompany the buyer on a test drive.

Step 11. Once a price is agreed upon, have the buyer sign a sales agreement, which you can download from the internet at no cost, via various websites.

Step 12. If it is a cash sale, you should request payment via an EFT.  And wait for the funds to register on your account balance, before handing over the car and the registration document.

Step 13. You should also, at the time of delivery,  furnish the buyer with a receipt  as proof of payment, which the buyer will need in the registration process.

Step 14. Also request a copy of the buyers I.D, home, work and cell-phone number, and proof of address, such as a utilities statement copy.

Step 15. Getting back to the case of selling a car where there is still an outstanding amount owed to the finance house: It is fair to suggest, at this stage, that the buyer should  directly pay the finance house to settle the outstanding amount, (using the details from the settlement letter) and to pay the balance of the agreed price to the seller.

Step 16.

Now that all moneys are lodged in the correct account or accounts, you hand over the car, the keys (the spare set,  if still available) and the registration, wave old faithful goodbye, log onto AutoTrader, and start dreaming of your next set of wheels. Unless of course, you have already done so….