This post was most recently updated on May 17th, 2023
Prices across the used car market have dropped precipitously – what do you do?
If the used car market drops, it may be more difficult to sell your car for a price that you are happy with. Here are a few steps you can take to try to get the best price for your car:
Clean and repair the car: A clean and well-maintained car will be more attractive to buyers and may fetch a higher price. Consider getting any necessary repairs or maintenance done before you list the car for sale.
Price the car competitively: Research the prices of similar cars in your area to get an idea of what buyers are willing to pay. You may need to lower your price slightly to be competitive, but try to avoid pricing your car too low or you may not get the return you are hoping for.
Consider using online marketplaces: There are many online marketplaces, such as eBay and Craigslist, where you can list your car for sale. This can help you reach a wider audience and may increase your chances of finding a buyer.
Be flexible with negotiation: Be open to negotiating with potential buyers. If you are willing to be flexible on the price, you may be able to reach a deal that is acceptable to both you and the buyer.
Remember, it may take longer to sell your car if the used car market is down, so be prepared to be patient. It’s also a good idea to keep track of any expenses you incur while trying to sell the car, such as advertising costs, as you may be able to claim these on your taxes.
What if you owe more than it’s worth?
If your car loan is underwater, it means that you owe more on the loan than the car is worth. This can happen if the value of the car decreases significantly, or if you took out a loan with a high interest rate and a long repayment term.
If you find yourself in this situation, here are a few options you can consider:
Refinance the loan: If you have good credit, you may be able to refinance your loan at a lower interest rate, which can reduce your monthly payments and make it easier to pay off the loan.
Sell the car: If you are able to sell the car for more than what you owe on the loan, you can use the proceeds to pay off the loan and any remaining balance.
Trade in the car: If you are in the market for a new car, you may be able to trade in your current car and use the trade-in value towards the purchase of a new car. This can help you pay off your underwater car loan and get into a more affordable car.
Negotiate with your lender: If you are having trouble making your monthly payments, you may be able to negotiate with your lender to restructure your loan or extend the repayment period.
It’s important to keep in mind that any of these options may have consequences, such as negative impacts on your credit score or additional fees. It’s a good idea to speak with a financial advisor or an attorney before making a decision.
Where should you sell it?
While many services claim to buy any type of vehicle, they often specialize in a particular type of vehicle and this can affect the price they offer. For example, a service that primarily deals in newer sedans may offer a good price for a 2021 Camry, but a low price for an older pickup truck like a 2010 Ford. If you have an older truck, you may want to consider selling it to a service that specializes in buying older trucks as they may offer a better price. Keep in mind that you can still sell the Ford to the service that specializes in sedans, but you may want to explore other options as well.
It can be difficult to get a good price for vehicles that don’t fit into traditional categories, such as salvage vehicles. Salvage vehicles are cars that have been deemed a total loss by insurance companies, but can be repaired and given a rebuilt title. Many services may not be interested in buying these types of vehicles, which can make it challenging to sell them but if you use a specialized service that buys salvage vehicles, you can ensure you get the best price.