Selling to a service

here have been a lot of changes over the past several years in how people sell their cars, mostly driven by data and technology.

Some online services will make you an offer on your vehicle based on data about the current market for your car. Be prudent, however, when using such services, as you might not come out on top in the deal.

KNOW YOUR STUFF

Check several different valuation websites to get a good idea of what your vehicle is worth before you entertain any offers. Knowing what your vehicle is worth will give you leverage in any negotiation, whether it’s with a dealership or an online service.

You also should know how much you owe on your vehicle. If you get an offer that’s less than your loan balance, you will need to pay the difference in cash in order to complete the sale.

BE HONEST

Most websites that will make an offer on your car work off data you provide to arrive at an offer value. Be forthcoming about the mileage and features of your vehicle, and any defects or damage, which all can affect its value. The more accurate your description of the vehicle and the photos you provide, the more likely the offer value you get will be accurate. When the service sends a representative to purchase your vehicle, they will confirm that it meets the description you provided. Any discrepancies could lead to a lower value.

WEIGH YOUR OPTIONS

One benefit of trading in your car rather than selling it on your own is that it might save you some money on sales taxes. In some states, the value of the trade-in is deducted from the new car price when calculating sales tax.

Remember that you will likely be paying for the privilege of selling your vehicle easily. You will simply provide your car info and receive a check. The purchasing service will do the rest. You won’t need to advertise and deal with potential purchasers. You will, however, probably not receive as much money as you would make in a private sale.