Part 2 Get the most out of your sale
6. Talk to Your Accountant
Selling a car can have tax implications. If you make a $10,000 profit on the sale of a car, but have to pay a third of that in taxes, would you have been better off just keeping the car? Do you have enough receipts to increase your cost basis in the car and reduce your tax obligation? Also, how public do you want that sale to be? Some transactions are more public than others, so if you’re looking to keep things on the DL, a big, public online auction may not be the right answer for you.
7. Organize the Back End
Figure out your end of the transaction before you even list the car for sale. How do you want to be paid? Do you prefer cash, certified check, wire transfer or PayPal? Are you set up and ready to accept all the forms of payment you’re willing to take? Are you willing to take trades? How long can the car be stored at your place? Will you help with shipping? Having these answers ready before someone asks will generally make for a smooth transaction.
8. Pick a Venue
Let’s say the car is ready, the paperwork is prepared, and the photos are shot. Now you need to pick a venue for your sale. Which one is right for you and your car? Good question, as today’s market offers so many options. Here are the big ones, with some of the points in their favor:
- eBay Motors online auctions: Still the biggest auction house out there. They’ll take anything presented to them and, good or bad, anyone out there is free to bid.
- Bring a Trailer online auctions: They only take cars that fit their demographic, but they offer a focused, passionate audience as well as marketing and concierge services.
- Craigslist online ads: Placing an ad is free and easy, but each local market will require its own ad. Content aggregators like AutoTempest can help extend your ad’s reach.
- Classic car dealers: The dealer is going to offer a wholesale value, but this can be a quick, easy way to get rid of a car.
- Smaller, boutique auctions: The audience will be very vetted, but these houses will not accept every car brought their way–only the finest examples. Plus, you need to physically get the car there.
- Larger auctions: You might wind up competing against a similar car, but in theory everyone in the audience is there to buy. Transportation to the auction site must again be considered.
- Magazine or club publication ads: Longer lead times but very focused, knowledgeable audiences.
- Club- and marque-specific message boards: Possibly a smaller audience, but a very passionate one.
The best way to offer a car for sale might be some combination of these techniques; that way you can make sure you reach the widest audience. You can place the car with Bring a Trailer, for example, and then post something on some club message boards.
You’ll also want to look at fees. An online or Craigslist ad can be free, while a top-tier auction–assuming they take your car–is going to charge a seller’s commission that could be 10 percent or more of the sales price. The other options fall somewhere between the two.
The best way to offer a car for sale might be some combination of these techniques; that way you can make sure you reach the widest audience. You can place the car with Bring a Trailer, for example, and then post something on some club message boards.
You’ll also want to look at fees. An online or Craigslist ad can be free, while a top-tier auction-assuming they take your car–is going to charge a seller’s commission that could be 10 percent or more of the sales price. The other options fall somewhere between the two.
9. List Your Car
You’ve done your homework and gotten your ducks in a row. Now it’s finally time to list the car for sale.
Timing is important here. Place the ad when you have time to answer questions and show the car as needed. Placing it the day before you leave on a long trip is usually not the hot ticket.
When you write your listing, be honest and open in your description of the car; include all of the good, clear photos you have. Continue that honesty in any interaction you have with potential buyers. Communication is key: No one wants to deal with a seller who is shifty and uncommunicative.
We listed our Tiger with Bring a Trailer. While this site started out as an online resource for sharing cool cars listed elsewhere for sale, they now offer their own online auctions. The fees are reasonable, too: It costs less than a hundred dollars to list a car, and there is a 5 percent buyer’s premium. The Bring a Trailer crew approves the cars offered on their site and writes the copy as well. Basically, they hold your hand through the entire process.