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01 Sep 2007 | Text and photos by Jegan Das Haridas | Category: Car Selling Advice
Time to sell your car? Here are some of facts to guide you along the selling process.
|Trading in your vehicle at new car dealers is the same as selling it to used car dealers. Used car dealers are stationed at new car showrooms to purchase cars.|
Is the depreciation and maintenance of your car too high? Or do you want to scrap the car as the COE is expiring soon? Or do you simply want to change your car?
If you find yourself nodding your head to any of the above questions, you probably need to sell off your car.
The burning question is, how do you plan sell it?
Below are two of the conventional routine car sellers take.
|1) Sell to used car dealers|
|2) Sell to direct end-consumers|
1) Sell to used car dealers
This is the most common way to sell off a used vehicle - selling your car to a dealer. Afterall, a dealer will buy nearly any car you place in front of him. Even if your car is scratched, dented, or smashed, car dealers have their ways to recondition it and sell it off.
When selling to dealers, it is advisable to check with a few dealers on the selling price. There are many tactics that dealers use to lure their sellers. One common way is to quote a price way above the market price. After the seller has rejected all other reasonable offers from other dealers, the dealer reduces his original offer and the seller will be stuck a lousy offer.
Selling to a dealer is absolutely hassle-free. (If your price is sufficiently low, they may provide door-step service and serve you as if you are some kind of royalty.) Dealers handle all the documentation of the sale and provide you with cash payment.
Selling to a dealer is safe and simple. With a few phone calls, your car is sold.
The single biggest disadvantage of selling to the dealer is the relatively low price offered. Dealers act like middlemen and are making a profit on your vehicle. Typically, each used car will have to generate at least $2,000 profit, else it would be uneconomical for the dealer to buy it from the seller. The profit will account for the dealers' overheads such as rental, salesman salary, and their other bills. In addition, they face the risk of uncertain market conditions which may translate into deficits if they are unable to sell the car off.
One must always be careful when signing any document with a used car dealer. They are very experienced in the complex field of motor trade, and you can easily be short-changed. You should always insist on all verbal agreements to be written down.
2) Sell to direct end-consumers
With more automated filing systems implemented by the government, owner-to-owner sale is a growing alternative for many owners to sell their vehicles nowadays. The legal documentation process has been streamlined, and the presence of online platforms, like sgCarMart, connect buyers with sellers directly without the need for middlemen.
For such cases, the seller will need to advertise his car for sale, arrange for viewing and test-drives, then proceed with the documentation to transfer the vehicle ownership.
By eliminating the dealer, car owners can fetch a higher selling price as compared to if they sell it to a dealer. This is the sole advantage, but also a very significant one. Afterall, the aim of selling your car is to get the highest price possible.
When conducting a owner-to-owner sale, all the administrative work will have to be settled by the seller and buyer. The seller has to cancel his insurance and pay his loan in full. Thereafter, he has to proceed to LTA with the buyer to effect the ownership transfer. If the buyer requires a loan, the seller may also need to help him to secure a loan to seal the deal.
Time and money could be wasted if no one respond to your car ads. Several viewing and test-drives does not necessarily lead to a successful sale. Selling a car is not an easy feat.
Mishaps may take place during an owner-to-owner deal. There is a chance that the seller may not have the necessary documents for the transfer. Perhaps, he may not be well-versed with the exact procedure to make the transfer of ownership - making payment; transferring the ownership; collecting the car. It is crucial that the seller knows his stuff to ensure a smooth flow for the transfer of ownership. It is not uncommon for ill-informed sellers encounter difficulties during this process.