How to sell a car

Whether you’re trading up or scaling down, or you’ve had a change in lifestyle and transport needs, at some point you’ll need to sell a car.

In most cases you’ll want to maximise the return because you’ll be using the money to help buy a replacement, but you might just want to get rid of it as quickly and easily as possible.

Either way, there are an increasing number of ways to sell a car – and several steps you can take to get the best price for it.

Read on to discover which method of selling is best for you, along with our top six car-selling tips.

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Selling a car using an online service

There are many companies that offer to buy your car, such as webuyanycar. You enter your car’s details on the company’s website (such as age and mileage), receive a valuation, and then take it to a local depot to have it assessed. The money is usually paid straight into your bank account, but there may be admin fees.

Alternatively, you could use an online service, such as Carwow and Motorway, which gives you a valuation for your car and then presents it to dealers. If you choose to accept the highest offer, your car will be collected for free.

Bear in mind that while online car buying services such as these are convenient, you’re unlikely to match what you'd get compared to selling privately. However, even if you've no intention of selling your car using an online service, they're a useful way to get a quick valuation.

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Selling a car via private classified ads

Traditional classified services such as Auto Trader remain a popular way to sell used cars. For sports, performance or classic cars, for example, consider advertising in a specialist magazine or on a related website; for a low-value older car, you could try free-ad websites (such as Gumtree).

Make sure your advert describes the car accurately and gives all the necessary information: specific model and specification, age, mileage, length of MOT and service history. Avoid unnecessary waffle, but put in any appealing information, such as ‘only one owner’, ‘recent cam belt change’ or ‘new tyres’, if applicable. Also provide a good selection of decent-quality photographs, including interior shots.  

Be prepared for people who fail to turn up, time wasters and aggressive hagglers. Make sure that buyers are insured for test driving and have a valid driving licence. Most importantly, be wary of crooks: be careful giving out your personal information online, do not leave people in your car alone with the keys or paperwork, and be mindful of your own personal security and safety at all times.

Top tip: When taking payment in a private sale, write out two receipts for any deposit or payment made, signed by you and the buyer, including the car’s make, model and registration number, agreed price and how the money was received. Write down both your and the buyer’s full names and addresses, with date and time. Be on your guard for forged banknotes; a banker’s draft is more secure, but could take two weeks or more to clear, and forgeries do occur. Do not hand over the keys until the funds are safely in your account.  

Selling a car by part exchange

If your car is only a few years old, or if you’re buying another vehicle from the same manufacturer, then part exchanging it may be the best and simplest option. Franchised dealers are usually keen to take on good-quality second-hand cars for their forecourts, but may prefer models from the same brands it sells new. Independent dealers will usually take on almost any good-condition car in part exchange.

If you choose to part exchange, you should focus on the ‘price to change’ – this is the difference between the part-exchange offer on your old car and the price of the new one, rather than the individual price of either. A dealer may offset a discount on your new car against a poor valuation on your old one, for example, or offer a very good price on your old one to tempt you into buying the new car at close to list price (the price shown in the brochure).

Bear in mind dealers will want to make a margin on any second-hand car they take on, so the part-ex price is unlikely to be as high as the price you’d get from selling privately. However, it’s undoubtedly much more convenient.

Selling a car to a dealer

If your car is relatively new, has low-mileage and is a model in high demand second-hand, or if it has particular specialist or niche appeal, then a dealer (franchised or independent) specialising in that marque or type of vehicle may be interested in buying it outright. Small local traders also value mainstream vehicles that have been well cared for, especially if it’s a car they know they can sell on again quickly. This may be a quick and easy way to sell, if not the most lucrative.

Selling a car at an auction

Sending your car to an auction is a more impersonal way to sell it, although there are no guarantees of a sale and prices are not generally high. You'll need to pay an entry fee and set a reserve price; if it doesn't reach this price, you'll have to take it home or try again in another sale. Although you should receive payment from the auction company promptly, commission will be deducted.

Online auctions

Auction websites, such as eBay, are a popular way to buy and sell second-hand cars of all types and ages. You’ll usually have to pay a small fee and can set a reserve price; eBay also allows a ‘buy it now’ function at a set price. Bidders can ask questions prior to the sale, but as long as the car is described accurately, bids are legally binding. Follow the same approach to writing an eBay ad as you would for a classified ad, as described above.

As the buyer may be purchasing unseen, don’t expect to achieve a top value. Be wary of bidders with no eBay history, or without positive feedback, and do not do business with anyone offering you a suspiciously high price to settle up outside of eBay’s payment system.

Donate a car to charity

If you are stuck with a low-value car or you simply can’t face the tyre-kickers, you could donate it to a charity. Many charities, from big household names to small local fundraisers, are signed up to schemes whereby a donated car can be collected and either auctioned (if it's roadworthy), or scrapped and recycled, with the charity receiving the price paid. This is sometimes done in partnership with social enterprises, such as those providing work experience for disadvantaged people.

Research the different schemes, however, because some deduct fees for administration and vehicle collection, reducing the money a charity gets.

Six top tips for selling your car

Before you start drafting an ad, there are a few things you can do maximise the appeal of your car. Here are our top tips on preparing a car for sale.

1. Get the price right

You don’t want to undersell your car. So before you agree to any part-exchange deal or put your car up for sale, search for similar models advertised online. Try to find cars that are of a similar trim level and age. It will give you a better idea of what your car will sell for.

2. Consider an MOT (and gather your paperwork)

A car that has recently had an MOT is more appealing than one that hasn’t. Not only does it mean the buyer doesn’t have to pay for a new MOT straightaway, but your buyer can be more confident that the car is in a good state.

You also want to make sure you have all the relevant documentation to hand. Here’s a quick paperwork checklist:

• V5C (logbook)
• MOT certificates
• Service book
• Manual (if your car comes with one)
• Invoices and receipts for significant work done or parts purchased.

If relevant, ensure you can prove any outstanding loans have been paid off and that the car is yours to sell.

3. Find all the keys and accessories

Get all the keys for your car together, including (if you have locking wheel nuts) the special socket-style tool for unlocking alloy wheels. Also re-fit any parts or accessories you might have removed, such as a parcel shelf for the boot or a tool kit.

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4. Get it looking spick and span

Before taking photos, and before anyone takes it for a test drive, give it a good clean inside and out. Pay special attention to the parts a driver is most likely to see, such as the dashboard, steering wheel, seats, carpets and windows.

If your car is relatively new and high value, it may be worth investing in having minor bodywork damage and paintwork scrapes repaired, or renovating scuffed alloy wheels.

Or you could save money and fix any shallow scratches yourself using one of our best car scratch removers.

5. Delete your personal data

You might be thinking, what data? But if your phone has Bluetooth, you may have copied your phone book to your car’s memory, while a built-in sat nav may have the addresses of your home, work and friends all stored in its memory. That isn’t data you (or your friends) want to share by accident, so delete it before you sell.

You will also need to revoke your access rights to the car and provide evidence of this for the buyer.

Here’s how:

• Wipe your data – go to your car’s infotainment unit and look in the Settings menu for controls to erase your account and data. Check your manual if you can’t find it easily on the unit itself. When you drive it to the dealer or buyer, don’t reconnect your smartphone to the car, as otherwise you’ll leave trace information that hasn’t been deleted.
• Revoke access – deleting the car’s app from your phone won’t be enough to remove your access. You need to break the link between you and the vehicle. Again, you’ll need physical access to the infotainment system to trigger the master reset key. Follow the instructions on the unit or check the manual to ensure your access is completely revoked before you sell it.

If you’re still unsure how this is done, give the manufacturer a ring to ask for help.

6. Honesty is the best policy (really)

It can be tempting to be a bit ‘economical’ with the truth. But if you're upfront about your vehicle and answer all questions truthfully, your sale should be straightforward and a buyer will have little legal comeback should the car later develop faults.

Other things to consider

• You are legally responsible for your car until the DVLA is notified of its sale, either via sending part of the V5C (logbook) to the DVLA or notifying the DVLA using its online service.
• Any future full months’ car tax (VED) you have paid will be refunded to the person named on the V5C. The new buyer will need to tax the car themselves.
• Settle any outstanding finance with your lender.
• The buyer should notify a warranty company, if applicable, of the change of ownership. Products such as servicing packages, if originally bought, may also be transferable.
• Remember to notify your insurer that you no longer own the car.