How to Sell a Car and What to Prepare

Thousands of Australians sell their vehicles every week. Some walk away satisfied with excellent prices and smooth transactions while others accept disappointing offers after frustrating experiences.

Ensuring your car is safe, presents well and knowing everything from what car sales platform to sell your car on to what happens to your insurance are all important to know before you sell your car

This guide will show you exactly how to prepare when you go to sell your vehicle so you can understand what buyers really want, how to present your vehicle and how to complete the sale safely.

It's important to confirm that your insurance policy will protect you throughout the selling process, should anything go wrong. Make sure your insurance is active until after the sale is complete. This coverage can protect your car during test drives and viewings, and since you’re still the legal owner of the car, any accident, injury or damage may still fall on you. 

Think ahead for any coverage gaps that may happen by taking the time to understand the transfer process once the sale finalises. This will protect you from being uninsured prior to  selling your car.

Safety comes first and buyers want assurance, so you may need proof that your car meets legal standards.

A safety certificate, also known as a roadworthy certificate, provides that proof. This document confirms your vehicle meets minimum safety requirements for road use.

This inspection covers critical components and is conducted by an independent approved inspector who will ensure the below are checked and roadworthy for sale

• Tyres: Tread depth, sidewall condition and age all matter. You need to ensure that your tyres aren’t worn or damaged. 

• Brakes: Pads, rotors, brake lines and fluid levels are all assessed. Your car must be able to stop safely and reliably.

• Steering: Steering components are checked for wear and excess movement.

• Suspension: Inspectors look for worn bushes, leaking shock absorbers and damaged springs.

• Rust: Structural rust that has deep corrosion can also compromise safety and is likely to fail an inspection. 

• Windscreen: Chips and cracks over a certain size will need to be repaired or replaced.

• Headlights: Headlights, indicators, brake lights and reversing lights are checked

Since some states and territories legally require these certificates for private sales (with limited exemptions), it’s essential to check local regulations, as selling without the required document can result in legal complications.

There are a few ways to sell your car, including a private sale or a trade-in, with each having their own advantages.

Private sales can typically deliver the highest price and if you're selling directly to the end user, this will eliminate dealer margins.

This option can require more effort from you, including needing to write the ad, answering enquires, viewings and supervising test drives. If you’re letting potential buyers test drive your car, you’ll also need to make sure your insurance policy covers this.

Privately selling your car takes patience too, and while some can sell quickly, others can take months. Within this time you’ll meet a mix of people, some who are serious buyers and others who are just browsing, which can take time out of your day.

When meeting potential buyers who want to look at and test drive your car, it’s advisable to arrange public locations and to bring another person with you to the viewings whenever possible.

A private sale also involves having to handle all the in-depth paperwork yourself, including transferring the registration. Don’t cancel your insurance or release the car until the payment has cleared and the new owner has officially taken ownership.

Dealerships can offer convenience and a more hassle-free experience. You drive in with your old car, complete paperwork and drive out with a new vehicle.

Unlike a private sale, a trade-in option can take hours instead of weeks. With this option, there aren’t any ads to write, no phone calls to answer, no need to obtain a safety/roadworthy certificate and no strangers to deal with. The dealer handles everything.

While convenient, dealerships also come at a cost as they need to make a profit when reselling your car, so trade-in offers are usually below private market value, and sometimes by a fair margin. However, if time matters more than money to you and you’re buying your next car from the same dealer, the trade-in can be easily rolled into the purchase.

Some dealers buy cars even if you're not purchasing from them. These offers typically represent the lowest prices but maximum convenience.

There’s definitely more on your hands if you decide to sell the car yourself. The rules for selling cars are different depending on which state you live in. At the very least, you’ll need a vehicle transfer form, a safety/roadworthy certificate (depending on state) and most likely your registration certificate.

Listing your car unprepared can cost money, as these vehicles may sell for less. Consider having your car professionally detailed as a gleaming car signals care and assures buyers you have looked after it properly. Make sure you follow the below to prepare your car for sale.

Exterior: Wash every panel by hand and dry thoroughly to prevent water spots.

Paint & wheels: Polish the paintwork if possible to restore shine and remove minor swirl marks. Make sure to also clean the wheels to remove any brake dust.

Interior basics: Remove all personal items and rubbish, and vacuum thoroughly everywhere, including under the seats and in tight corners.

Deep clean: Clean all hard surfaces including your dashboard and console and use an upholstery cleaner or steamer to address stains on carpets and seats.

Odour: Eliminate bad smells through deep cleaning and consider using air fresheners.

Fix and repair: Inspect your car like a critical buyer and fix small things like scratches, chips, cloudy headlights, and broken trim pieces.

It’s important that you research your vehicle for its value rather than overprice it.

Start by researching online marketplaces for similar vehicles and filtering this by year, make, model and approximate kilometres. This data can show current market rates for your used car and allow you to estimate what your vehicle is currently worth. While searching for similar cars, ensure that you add in features that your car also has, including if it’s automatic or manual, what material seats it has and if it has a sunroof. These will allow you to accurately estimate what your car is worth on the market.

It’s also important to be realistic when it comes to selling your car. Think about your car’s condition and if it is excellent, good, fair or poor compared to others and how many kilometres your vehicle has done, so you can adjust your price accordingly.

Buyers expect to negotiate. It's part of the process. You can be prepared by setting your asking price above your minimum acceptable amount so you can walk away with a decent price.

And know your bottom line before listing. This prevents emotional decisions when buyers make low offers. Also, be prepared to justify your price.

Your advertisement can make or break your sale, as poor images can mean fewer inquiries.

Start by choosing your location carefully, keeping in mind that neutral backgrounds such as empty parking lots and quiet streets work best. Ideally, try to avoid cluttered driveways or messy garages in your images when you go to sell.

Overcast days or later in the afternoon can also provide better images for your car as it’s best to avoid harsh sunlight and dark shadows. While capturing the image, ensure that you take photos of everything. Think, the front, rear, both sides, boot space, technology, dashboard showing the kilometres and the material of the seats inside your vehicle. Remember to capture anything that makes your car more luxurious to pique your potential buyers’ interest.

It’s also best to be honest straight away! This includes uploading images that show minor scratches, small dents and worn areas so they can know what to expect.

Write advertisement copy that will inform and persuade your buyers to want to see the car and finalise the deal.

Start with essential specifications.

• Year

• Make

• Model

• Kilometres

• Transmission type

• Fuel type

• Air conditioning

• Cruise control

• Bluetooth

• Parking sensors

• Reversing camera

• Navigation

• Service history and any recent work.

Make sure you describe the condition honestly but positively and avoid meaningless phrases.