How To Sell A Car Guide: 100% Success Guaranteed

How To Sell A Car Guide: 100% Success Guaranteed

April 29, 2021 0 By onroadtips

If you are reading this post, it’s most likely you need to know how to sell a car, which is actually simpler than you may have thought. However, as easy as it may be, there are a number of steps you still have to take and Onroadtips will show you everything there is to know right now.

Step 1: Are you sure you want to sell?

If you are planning to sell your car to buy a new one, you should consider trading it in at a dealership, which will save you a lot of time and effort having to sell your car. Trading in is a way to directly stack the value of your old car against the new one but it’s worth noting that the resale value of the car will be lower than that if you sold it on the market yourself.

Ultimately, you should think carefully about the opportunity cost of each option and figure out what benefits you more.

how to sell a car
Consider carefully before deciding to sell your car

Step 2: Prepare the car before selling

This involves inspect your vehicle and fix anything that makes the car look worse than its true value, like a stain on the backseat. Remember to remove every potential deal-breaker.

Then, you need to take a lot of photos of your car, which will make it easier for potential buyers to trust your listing. You should use a high-quality camera and take pictures from various different angles to demonstrate the most detail of your vehicle, including the front view, the rear view, the trunk, the hood, the side, the engine, the tires and wheels, etc.

Step 3: Prepare the paperwork

You need to prepare a few documents, including:

  • The latest Official Receipt of Payment (OR)
  • Certificate of Registration (CR)
  • Motor vehicle clearance from HPG
  • Original LTO Plate Numbers
  • Record or receipts of repairs, maintenance, and accessories
  • Endorsement from the insurance company to the new owner
  • Notarized transfer of title
  • A blank deed of sale

Step 4: Figure out a fair price for your car

You can ask your connections who know about cars and browse different websites to get a general idea of how to price your vehicle. You can put a price a little higher than the market’s average price to have room for negotiations.

how to sell a car
Browse as many cars as possible to get an idea of how to price your car

Step 5: List your car for sale

For those looking for how to sell a car online, there are a lot of platforms where you can list your vehicle for sale, the best of which is due to its huge user base and user-friendly system for easy processing.  

In this step, you get to describe your car to viewers, including potential customers, and you should be honest and upfront about your vehicle.

Step 6: Viewings and negotiation

Potential buyers may ask you a lot of questions about the car like why you are selling it, whether or not it’s a first-hand car, and whether its service records are complete, among other questions.

They may even ask to have your car inspected by a mechanic, which is why you should be honest and upfront about your vehicle. They may want a test drive, during which you can tell them the best features of your car as well as what needs to be repaired, this will help build trust with the buyer as they feel that you are honest.

 Buyers tend to ask for a discount or a lower price than the one you listed. Therefore, you should think of the lowest price you are ready to accept and stay firm with it.

Step 7: Close the deal

Once you and the buyer have reached an agreement on the sale of the car, you need to close the deal. Keep in mind that you should never give the buyer the car unless they have paid you and the transaction should be done with a witness.

After receiving the money, you can draft a deed of sale and offer and official receipt. The last step of how to sell a car Philippines, don’t forget to discuss warranty, insurance, and maintenance with the buyer.

How to sell a car with a loan?
How to sell a car with a loan?

How to sell a car with a loan

If you got your car under a loan and haven’t finished paying the mortgage, you can simply sell it. According to the Promissory Note with Chattle Mortgage:

Sale, Encumbrance or Removal. The Borrower/Mortgagor shall not assign, sell, pledge, mortgage or otherwise dispose of or encumber or transfer possession of the Mortgaged Property or any part thereof, or attempt to do so, without the prior written consent of the Mortgagee. The Borrower/Mortgagor shall not remove or permit the removal of the Mortgaged Property from the Borrower/Mortgagor’s address stated above without the Mortgagee’s prior written consent. The Mortgagee shall have right to inspect the Mortgaged Property at any reasonable time.”

That means without a prior written consent from the bank where you got the loan, you are not allowed to sell or deliver the car to a buyer.

However, the general practice is that a buyer pays you the down payment along with the amortizations you’ve paid, then they pay the bank until the loan is complete. After that, the buyer will get the Release of Chattel Mortgage with related documents and have the registered ownership transferred from you to them.

We hope that through this post, you have got an idea of how to sell a car in the Philippines. While the actual rate of success and the selling price of the car depend on more factors like how your car matches the market demand or how unique it is, following these steps will surely help you sell it faster and get better bids.